The Trump administration has launched a sweeping overhaul of federal procurement policy aimed at streamlining the Federal Acquisition Regulation (“FAR”), cutting compliance costs, and increasing competition. These changes are expected to significantly impact how contractors engage with the federal government.
In April 2025, President Trump issued an executive order (“EO”) titled “Restoring Common Sense to Federal Procurement” (April 15, 2025), an EO titled “Ensuring Commercial Cost-Effective Solutions in Federal Contracts” (April 16, 2025), and a White House Statement titled “Revolutionary Federal Procurement Overhaul” (April 16, 2025).
Key Changes for Government Contractors
A Rewrite of the FAR
- The FAR must be “overhauled” within 180 days (by mid-October 2025).
- One stated goal of this overhaul is to eliminate unnecessary, duplicative, or burdensome regulations.
- A separate stated goal of this overhaul is a “plain English rewrite” to simplify the rules for usability by both agencies and contractors.
- Whether a goal or an unintended consequence, small businesses and non-traditional vendors can expect fewer barriers to entry.
The “10-for-1” Deregulation Rule
- For every new regulatory requirement, 10 existing ones must be repealed.
- Agencies are expected to review and slash supplemental rules.
A Sunset Clause on Non-Statutory FAR Provisions
- Provisions not required by law will expire after four years unless renewed.
- Contractors should track FAR revisions closely as longstanding rules may disappear.
A Focus on Commercial Cost-Effective Solutions
- Agencies must default to commercial items and practices wherever possible.
- Any deviation from commercial norms must be justified.
- This is intended to open the door for commercial vendors who previously avoided federal contracting due to red tape.
An Elimination of “Woke” and DEI Requirements
- The White House has stated that non-statutory DEI requirements and other “social engineering mandates” will be removed from federal procurement policy.
- Contractors should review new solicitations and compliance guidance for removal or revision of related clauses.
New Transparency Tools
- A public-facing portal is being developed to provide:
- Draft rules and regulatory updates
- Agency-specific buyer guides
- Tools to track the FAR overhaul and public input opportunities
Next Steps for Government Contractors
- Review the company’s current compliance posture, especially with regard to complex or niche FAR clauses.
- Track regulatory updates on the new Office of Federal Procurement Policy website (coming soon).
- Engage with agency acquisition personnel to understand how interim guidance may impact current and future solicitations.
The federal procurement system is being re-engineered to work more like the private sector. The goal is fewer regulations, faster timelines, and more accessible opportunities, but contractors must stay informed and flexible as this historic overhaul unfolds.
