On April 15, 2025, President Trump issued a highly anticipated Executive Order (EO) calling for the abrupt and drastic reduction of the Federal Acquisition Regulation (FAR). The EO gives the Office of Federal Procurement Policy (OFPP) a short six months to review the massive labyrinth of interconnected acquisition provisions and prune away what could be significant portions of the existing framework.
Like many other EOs released by the Trump Administration since January, this one requires immediate administrative action with short-term completion horizons.
FAR Amendment (180 Days)
The OFPP, in consultation with specifically appointed procurement leads from the executive agencies (see below), has 180 days to remove from the FAR all provisions not required by statute or otherwise necessary to:
- Support simplicity and usability;
- Strengthen the efficacy of the procurement system; or
- Protect economic or national security interests.
Effected Provisions
The number of provisions exposed to deletion under this EO is unclear. Publicity during the weeks leading up to this EO triggered acquisition experts to preemptively consider how much of the FAR is statutorily required, but there is no easy answer.
Much of the FAR is promulgated to give effect to otherwise broad statutes (NDAA provisions, for example), making it difficult to separate the “required” ones from those at risk for deletion under this EO.
The EO provides exceptions for provisions thought of as critical even if not statutorily based, presumably including supply chain safety, cybersecurity, and commercial items preferences already emphasized in earlier EOs. (See our review of the President’s EO on DOD Acquisition Reform here.)
Given the President’s concurrent efforts at shoring up the U.S. manufacturing base, it is likely that product origin and content restrictions such as the Trade Agreements Act, Buy American Act (BAA), and Build America Buy America Act (BABAA) could survive the cut.
4-Year Sunset Provisions
Any retained FAR provisions that do not enjoy statutory backing, such as those required for simplicity, efficacy, or security as discussed above, are not safe from eventual deletion. Each one must be considered for inclusion of a sunset provision that would expire four years after the FAR reduction becomes effective.
This 4-year sunset provision must also be considered for inclusion in all non-statutory FAR regulations enacted after the FAR revision. However, the FAR Council will have authority to renew any provision facing expiration. If this EO remains in effect beyond the Trump administration, this sunset provision could trigger a large administrative burden sometime during 2029 as all retained non-statutory FAR provisions come up for review.
Appointing Agency Liaisons to OFPP (15 Days)
Each executive agency with acquisition authority has 15 days to appoint a senior acquisition official to work with OFPP and the FAR Council on identifying and slashing FAR provisions as described above. This individual will also ensure agency commitment to FAR reform, hinting at a continued emphasis on realigning agency bureaucracies with administration goals. This commitment includes scrutinizing each agency supplement using the same deletion guidance applied to the FAR.
OMB Guidance Memorandum to Agencies (20 Days)
Although the executive agencies will engage in the FAR Reform process largely through their appointed liaisons, OMB is directed to provide general guidance to agencies on the overall implementation of this EO within 20 days.
More importantly, this memorandum must propose new regulations to streamline agency acquisition supplements. The EO reiterates that any new regulations recommended by the memorandum will require the deletion of ten existing regulations under the now familiar “ten-for-one” rule established by an earlier EO.
Interim Guidance
OFPP and the FAR Council are tasked with providing interim guidance, including FAR deviations if necessary, to bridge the gap between the administration’s priorities announced in this EO and the ultimate enactment of the required FAR revisions.
Impact on Government Spending
The Trump Administration’s commitment to increasing efficiency by reducing administrative ballast may be the needed catalyst for the realization of procurement reform efforts. However, federal procurement exists in tension between the often-opposed goals of efficiency and cost. This sweeping acquisition reform effort does not mention cost either directly or indirectly. Thus, contractors could expect “FAR 2.0,” as it is being called by those outside the government, to provide greater access to contracts with less administrative red tape, resulting in a “boom” in government spending.
Impact on Contractor Participation
Any reduction in the government-facing parts of the FAR (Parts 1 through 51) comes with a corresponding change to FAR Part 52, which contains the thousands of contract clauses that apply directly to contractors. The number, complexity, and reach of these clauses is known to repel new contractors from entering the federal market and creates significant compliance burdens on existing companies.
If this revision substantially reduces the number of clauses that now heavily regulate contractors, an increase in competition could result. Additionally, as the administrative barriers to entry are lowered, the federal market could see an increase in the number of small business contractors willing to participate.
Impact on Administrative Procedures
Even if cost considerations are placed on the periphery for now, government contracting under the new FAR will not be an administrative free-for-all. The anchoring statute-based provisions of CICA, the Small Business Act, the Cost Accounting Standards, and the implementation of labor statutes will remain substantially intact.
The experience gained in using non-FAR authorities such as OTAs demonstrated that contracting abhors a vacuum. Even in the absence of a requirement to utilize FAR clauses and concepts, contracting officials tend to stick with the familiar. Thus, even if major swaths of the FAR landscape are erased, the institutional knowledge held by acquisition professionals may prove enough to keep government acquisition moving in a positive direction.
Public Comment
The changes directed by this EO are subject to the Administrative Procedures Act, which requires the Administration to submit the revisions for public comment before release of the final rule.
All stakeholders in federal procurement would be wise to submit helpful comments that argue for the statutory basis or criticality of provisions important to their industry, the government, or the country.
