President Donald Trump issued an executive order on federal procurement titled "Restoring Common Sense to Federal Procurement" on April 15, 2025 (the April 15 EO), directing that the Federal Acquisition Regulation (FAR) be reduced to only those provisions required by statute or which are otherwise necessary for certain limited purposes. The next day, President Trump issued another EO, "Ensuring Commercial, Cost-Effective Solutions in Federal Contracts" (the April 16 EO), directing federal agencies to procure commercial products and services "to the maximum extent practicable." These orders come on the heels of three EOs signed last week that focused on accelerating defense procurement, improving foreign defense sales between the U.S. and its allies and revitalizing American maritime industries.
This Holland & Knight alert provides an overview of what the latest orders do and how they will impact contractors.
Revising the FAR
In the April 15 EO, President Trump directs the Administrator of the Office of Federal Procurement Policy (OFPP), in conjunction with the other Federal Acquisition Regulatory Council members – the U.S. Department of Defense (DOD), NASA and General Services Administration (GSA) – "to amend the FAR to ensure that it contains only provisions that are required by statute or that are otherwise necessary to support simplicity and usability, strengthen the efficacy of the procurement system, or protect economic or national security interests." Concurrently, each agency shall designate a senior acquisition or procurement official to work with the OFPP Administrator and FAR Council "to ensure agency alignment with FAR reform and to provide recommendations regarding any agency-specific supplemental regulations to the FAR." The Order sets a deadline of 180 days from April 15.
Recommended Regulatory Sunset for Non-Statutory Provisions and Agency FAR Supplements
The April 15 EO directs the OFPP Administrator and FAR Council to identify all FAR provisions not required by statute that will remain in the FAR. For these provisions, the Administrator and FAR Council should consider having them sunset four years after the effective date of final rulemaking. Likewise, for any new provisions promulgated after this final rulemaking, which are not required by statute, the Administrator and FAR Council should consider having such new provisions expire four years after its effective date.
The April 15 EO directs the Office of Management and Budget (OMB), in consultation with the OFPP Administrator, to issue a memorandum providing guidance regarding implementation of the EO. The purpose of such a memorandum is to "ensure consistency and alignment of policy objectives and implementation regarding changes to the FAR" and agency FAR supplements. The EO specifies that the memorandum must "propose new agency supplemental regulations and internal guidance that promote streamlined acquisitions." Any such regulations, however, must adhere to the "ten-for-one requirement" described in EO 14192, Unleashing Prosperity Through Deregulation (Jan. 31, 2025) – a requirement for federal agencies, when proposing a new regulation, to identify "at least 10 existing regulations to be repealed." Finally, the EO directs the OFPP Administrator and FAR Council to issue "deviation[s] and interim guidance, as appropriate and consistent with applicable law, until final rules reforming the FAR are published."
Directive to Contracting Officers to Utilize Commercial Products and Services
In the April 16 EO, President Trump directed a strong preference for agencies to utilize commercial products and services: "It is the policy of my Administration that agencies shall procure commercially available products and services, including those that can be modified to fill agencies' needs, to the maximum extent practicable, including pursuant to the Federal Acquisition Streamlining Act of 1994."
The Federal Acquisition Streamlining Act of 1994 (FASA) was signed into law by then-President Bill Clinton. One of its primary purposes was to increase the purchase of "commercial items," which FASA sought to define broadly and therefore eliminate numerous requirements in the purchases of such items. However, since the enactment of FASA and implementation of associated changes to the FAR, the number of FAR provisions and clauses has ballooned, undermining a key goal of FASA. Through the Executive Orders, the Trump Administration seeks to return to FASA's roots.
To achieve this goal, President Trump has directed agencies to conduct a comprehensive review over the next 60 days of all open solicitations, pre-solicitation notices, award notices and sole source notices. For any acquisitions of non-commercial products or services, contracting officers must obtain approval for the purchase of the non‑commercial products or services from the "agency's approval authority," defined as a senior procurement executive designated pursuant to 41 U.S.C. 1702(c). Agency approval authorities will then determine if the market research and price analysis justify the procurement of non‑commercial products or services, or if the solicitation of commercial products or services would be sufficient to serve the agency's needs. This approval process will also be utilized for all future proposed solicitations where an agency proposes to solicit a non-commercial product or service, with the addition that agency approval authorities may also seek input from the Director of OMB.
Furthermore, within 120 days, and annually thereafter, each agency's approval authority must provide a report to the Director of OMB detailing the agency's compliance with FASA and the April 16 Executive Order.
An Existing Roadmap for Revising the FAR: The Section 809 Panel
Discussions about reforming the FAR are not new. Indeed, the EO itself references the Advisory Panel on Streamlining and Codifying Acquisition Regulations, more commonly known as the "Section 809 Panel." The Section 809 Panel, created in Section 809 of the Fiscal Year 2016 National Defense Authorization Act (NDAA),1 established an advisory panel on streamlining acquisition regulations. The panel reviewed DOD acquisition regulations "with a view toward streamlining and improving the efficiency and effectiveness of the defense acquisition process and maintaining defense technology advantage" – much like import of the April 15 EO.
The NDAA specifically directed the panel to recommend the amendment and repeal of acquisition regulations. The Section 809 Panel published its conclusions in three final report volumes (in January 2018, June 2018 and January 2019). Those reports included 98 recommendations for "evolutionary and revolutionary change in the defense acquisition system," 10 of which expressly related to improvements to the procurement of commercial product and services.
Indicators of What a Revised FAR Will Look Like
While no one can be certain exactly what the revised FAR will look like, statements accompanying the April 15 EO offer some insight.
- "... [S]ince its inception, the FAR has swelled to more than 2,000 pages of regulations, evolving into an excessive and overcomplicated regulatory framework and resulting in an onerous bureaucracy."
- "Federal procurement under the FAR receives consistently negative assessments regarding its efficiency."
In an editorial published on April 16, 2025, GSA's acting administrator, the commissioner of the Federal Acquisition Service and a senior advisor to OMB made the following comments:
As the world's largest buyer spending nearly $1 trillion on procurement contracts each year, the federal government should be promoting agility, competition and results. Instead, our procurement process, after decades of regulatory buildup, does the precise opposite. It benefits ineffective and entrenched vendors who can afford massive compliance costs at the expense of everyone else — most importantly, the taxpayer. …
This administration will overhaul the FAR with plain English, eliminate nearly all non-statutory and duplicative regulations, remove DEI, waste, and wokeness and add helpful buyer guides in place of requirements. We will no longer procure useless and wasteful products like paper straws. We will focus on results above all else — the best products and services at the best cost.
Key Takeaways for Contractors
The proposed FAR overhaul and directive for agencies to solicit commercial products and services could result in significant changes to the procurement system. If enacted, there is almost certain to be a lessening of the regulatory and compliance burden that contractors currently face.
Contractors should monitor this process closely, particularly as it relates to pending and forthcoming procurements, and consult with counsel and other advisors to discuss how these pending changes will impact their current and future requirements. Holland & Knight is actively monitoring and reviewing President Trump's EOs and other actions. View a comprehensive tracking chart of EO summaries on our website.
Notes
1 National Defense Authorization Act for Fiscal Year 2016, Pub. L. No. 114-92, § 809, 129 Stat. 726, 889–90 (Nov. 25, 2015).
