Supplement to Federal Procurement Overhaul - Rewriting the Federal Procurement System
FAR OVERHAUL CHRONOLOGY – RELEVANT EO AND SUPPORTING MEMORANDA
Executive Order Funnel Impacting the FAR Rewrite
May 2, 2025 – FAR Council Memo: Deviation Guidance to Support the Overhaul of the Federal Acquisition Regulation
SUMMARY: Contemporaneous and consistent with the OMB Memo, the FAR Council released its own memo, instructing agency and department leaders to implement agency-specific deviations within 30 days of the release of FAR Council model deviations and explain any differences from the FAR Council model. The FAR Council has established a five-business day timeline to respond to agency requests for review of agency-level deviations.
May 2, 2025 – Office of Management and Budget Memorandum to Heads of Executive Departments and Agencies, entitled “Overhauling the Federal Acquisition Regulations” (M-25-25)
SUMMARY: In accordance with EO 14275, the Office of Management and Budget (“OMB”) released a guidance memo to the heads of executive departments and agencies regarding the FAR Overhaul. The memo further identified the key players in the FAR Overhaul, including the Office of Federal Procurement Policy in the lead, in coordination with the FAR Council, the primary members of which include the GSA, DOD, and NASA. The overhaul will refocus the FAR on its “statutory roots.” Any rule deemed to be “non-statutory” is likely to be significantly revised, if not discarded entirely. The streamlined FAR and agency buying guidelines collectively are designated as the “Strategic Acquisition Guidelines” or “SAG.” These SAGs are more akin to contracting playbooks than strict mandates, empowering contracting officers with a greater degree of flexibility in the establishment of bid requirements, contractor selection, and contract negotiation.
Pursuant to the initiative, a FAR Oversight website has been established by GSA to inform contractors and the public on progress of the Overhaul. FAR Council deviation guidance is to be published in “plain language” prior to the issue of formal rulemakings. The memo further clarifies that an objective of the overhaul is not just to rewrite the FAR, but to remove what the administration deems as “unnecessary regulation and policy” from federal procurement. Agencies are expected to implement deviations within 30 days after model deviations are released by the FAR Council, and provide such agency deviations to the GSA for posting on the FAR Overhaul website.
Following the FAR Council’s release of model deviation guidance for all parts of the FAR, a formal rulemaking, with the opportunity for notice and comment, is to be released. There is no target date as of yet for the NPRM. The memo further states that all FAR requirements “not directed by statute” that remain in the FAR will expire four years after the effective date of the new rule, unless expressly renewed by the FAR Council.
April 29, 2025 – GSA unveils “OneGov Strategy” to transform federal procurement of goods and services. (Press Release, GSA, April 29, 2025)
SUMMARY: As an initial stage to implementing the recent executive orders concerning federal procurement, GSA launched the “OneGov Strategy” aimed at modernizing how the government purchases goods and services. Initial focus will be on enterprise software licensing, shifting procurement focus from resellers to original equipment manufacturers (OEMs).
Government contractors are advised to consider whether they will need to adjust their strategy or selling to the government through resellers or consider direct listing of their products and services on relevant GSA Schedules.
April 15, 2025 – Executive Order No. 14275 - “Restoring Common Sense to Federal Procurement”
SUMMARY: The Trump Administration, stating that “conducting business with the Federal Government is often prohibitively inefficient and costly,” (Sec. 1) declared the need to overhaul the Federal Acquisition Regulations (FAR), codified under Title 48 of the Code of Federal Regulations, to create “the most agile, effective, and efficient procurement system possible.” The stated objectives of the overhaul are to remove unnecessary regulatory barriers to government contracting and expand the national and defense industrial bases. The Executive Order directs the FAR Council, working with agency heads and senior procurement officials, to amend the FAR accordingly. A Fact Sheet released concurrent with the Executive Order further directs the administration to “simplify and streamline” the FAR, and sunset non-statutory FAR provisions.
The Executive Order is part and parcel of the Trump Administrations massive deregulation efforts, purportedly to increase government efficiency, cut through red tape, and give taxpayers more value for their money (ref. EO 14192, “Unleashing Prosperity Through Deregulation,” January 31, 2025). The FAR Overhaul, as it has been labelled, is intended to be completed 180 days from the date of the Executive Order. This is an aggressive initiative to revise and simplify the FAR, with interim guidance and piecemeal deviations to be expected throughout the process both across the board and at the agency level.
April 15, 2025 – Executive Order No 14271 – “Ensuring Commercial, Cost-Effective Solutions in Federal Contracts”
SUMMARY: The Order requires federal agencies to purchase commercially available products and services, including those that can be customized as needed to meet agency requirements and objectives. The Order emphasizes that future procurement opportunities should be in compliance with the Federal Acquisition Streamlining Act of 1994, which was intended to encourage the acquisition of commercial items and simplify the procurement process where possible.
Agencies are directed to review, within 60 days of the Order date, all open solicitations, notices, award notices, and the like for non-commercial products to determine whether commercially available solutions will meet the applicable needs. Future non-commercial procurement proposals will require written approval from the agency’s “approval authority” before proceeding, and encourages those respective authorities to consult with the Office of Management and Budget (OMB), and requiring agencies to file an annual progress report with OMB accordingly.
Federal contractors are advised to consider the extent to which their product and service offerings can be categorized as commercial items under the FAR.
April 9, 2025 – Executive Order 14265 – “Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base”
SUMMARY: In this Executive Order, the administration has directed the Secretary of Defense to submit a plan for reforming defense acquisition, with the stated policy goal of accelerating procurement and revitalizing the defense industrial base. The Order places noticeable emphasis on applying commercial (rather than bespoke) solutions, and utilizing the streamlined “Other Transactions Authority” acquisition model.
The Order also requires a review of the Defense Federal Acquisitions Supplement (“DFARS”), common components in government contracts with the DOD and armed services applicable both to prime contractors and their subcontractors. Simply stated, DOD has been directed to rewrite the DFARS and eliminate “unnecessary supplemental regulations,” following the “10 for 1” principle (any proposed new rule must be accompanied by at least 10 rules, guidelines, or guidance to be repealed) established in Executive Order 14192 and its corresponding fact sheet. DOD is also directed to develop a plan cost-cutting, consolidation, and reduction in the size and scope of the acquisition and procurement staff across the board including both civilian and uniformed departments and personnel.
Aerospace and defense industry contractors and subcontractors should proposed DFARS changes as they are released, and coordinate with their respective agency or service contracting officers for more information, in addition to consulting legal counsel.
March 20, 2025 – Executive Order No. 14240 – “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement”
SUMMARY: With the stated goal of eliminating waste and duplication, the Trump Administration directed the General Services Administration to submit a proposal and plan for consolidation of domestic government procurement for “common goods and services.” This includes a broad selection of goods and services such as facilities and construction, IT, consulting and professional services, transportation and logistics, medical goods and services, industrial products and services, travel, security & protection, human capital, and office management. A comprehensive plan is due to the Director of the Office of Management and Budget within 90 days of the Order date. By consolidating purchasing through the GSA, the goal of the administration is to create economies of scale, establish a common process for procurement of common goods and services, and eliminate waste.
This plan, when implemented, is likely to shift procurement from agency-level procurement to purchasing through GSA schedules. Whether this shift will require the creation of new Federal Supply Schedules or Multiple Award Schedules under the GSA framework remains to be seen.
January 31, 2025 - Executive Order 14192 - “Unleashing Prosperity Through Regulation”
SUMMARY: This Executive Order established the overall tone for this administration’s approach to government regulation and contracting - reduce waste, modernize government for efficiency, and eliminate regulatory barriers to business. The Order requires all government agencies to identify at least 10 rules for elimination for every new rule proposed, and to submit annual cost savings reports to the Office of Management and Budget associated with regulatory changes and deregulation.