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Trump Administration Orders Major Overhaul of Federal Procurement
The way the U.S. government buys products and services is set for a significant transformation. President Donald Trump has issued an executive order initiating the biggest overhaul of federal procurement systems and regulations since the 1990s. This effort aims to modernize how federal agencies acquire goods and services, with the goal of creating a more streamlined and efficient process.
According to the order, the current Federal Acquisition Regulation (FAR) has become “excessive and overcomplicated”. The directive calls for the FAR to be rewritten to include only provisions mandated by law or essential for sound procurement. Any regulations not meeting these objectives are to be removed. The Office of Federal Procurement Policy (OFPP), within the White House’s Office of Management and Budget, will spearhead this sweeping review and rewrite of the FAR within a 180-day timeframe from the April 15th order. The goal is to rewrite the FAR in plain English, eliminate non-statutory and duplicative regulations, remove DEI and “wokeness,” and replace burdensome requirements with buyer guides.
A second order issued on April 16th directs federal agencies to prioritize purchasing commercially available products and services over unique government systems or custom solutions, unless a waiver is granted by the agency’s approval authority.
While the administration aims to simplify the procurement system, this transition period could present challenges. Lawyers at Dentons suggest that contractors may need to navigate a fragmented environment where different agencies adopt reforms at varying speeds. This could lead to inconsistencies in contract requirements depending on when they were awarded. Furthermore, contractors may face increased internal costs as they update compliance systems, retrain staff, and reassess risk management strategies.
The FAR currently incorporates important regulations such as Buy American, the Service Contract Act, the Competition and Contracting Act, and the Davis-Bacon Act. While the exact changes to these regulations are unclear, the administration has expressed strong support for domestic purchasing requirements.
Agencies have been given a 15-day deadline to designate a senior procurement official to collaborate with the FAR Council, and the OMB director has 20 days to provide guidance to agencies. This rapid pace indicates the administration’s commitment to quickly updating the rules governing federal projects. In a related move, President Trump also ordered federal agencies to integrate technology into their permit reviews to accelerate infrastructure project processing times.
This significant shift in federal procurement will require civil builders and federal contractors to remain vigilant and adapt to the evolving regulatory landscape.
Tags: federal procurement, FAR, Trump administration, government contracts, regulatory overhaul, OFPP, Buy American, commercial products, construction industry, infrastructure, legal regulation