By the authority granted to me as President under the Constitution and the laws of the United States of America, I hereby issue the following order:
Section 1. Purpose
The Federal Government stands as the world’s largest consumer of goods and services. However, engaging in business with it often feels like navigating a labyrinth—costly and inefficient. Over four decades ago, the Federal Acquisition Regulation (FAR) was introduced to standardize procurement processes across various executive departments and agencies. According to the FAR’s guiding principle outlined in section 1.102, the goal was to “promptly deliver the best value product or service to the customer while honoring public trust and upholding public policy objectives.” Yet, this noble vision has resulted in a convoluted regulatory document exceeding 2,000 pages. What began as a framework for efficiency morphed into a cumbersome bureaucracy that stifles rather than supports procurement.
Federal procurement under the FAR consistently garners negative evaluations regarding its efficiency. Noteworthy studies, such as the 2024 Senate committee report titled “Restoring Freedom’s Forge” and a 2019 analysis by the Advisory Panel on Streamlining and Codifying Acquisition Regulations, reveal that the FAR serves more as an obstacle than a facilitator for businesses wishing to engage with the Federal Government. The repercussions of this inefficiency impact taxpayers significantly, affecting everything from basic office supplies to sophisticated defense systems. With nearly $1 trillion allocated annually for procurements, this trajectory is unsustainable. Fortunately, these shortcomings are largely self-imposed and can be rectified through comprehensive reform of the FAR.
Executive Order 14192, issued on January 31, 2025 (Unleashing Prosperity Through Deregulation), underscores the executive branch’s commitment to prudent fiscal management and the reduction of unnecessary regulatory burdens on the American populace. Reforming the FAR aligns seamlessly with this objective.
Sec. 2. Policy
The United States aims to cultivate the most agile, effective, and efficient procurement system achievable. This requires dismantling needless barriers, such as superfluous regulations, while promoting the expansion of both national and defense industrial bases. Thus, the FAR should exclusively house provisions mandated by law or essential for effective procurement. Any sections failing to contribute to these goals should be eliminated.
Sec. 3. Definitions
(a) “FAR” refers to the Federal Acquisition Regulation codified in title 48 of the Code of Federal Regulations.
(b) “Administrator” signifies the head of the Office of Federal Procurement Policy.
(c) “Agency” denotes an executive department, military department, or any independent establishment as defined under 5 U.S.C. 101, 102, and 104(1), including any wholly owned Government corporation as per 31 U.S.C. 9101.
Sec. 4. Reforming the Federal Acquisition Regulation
Within 180 days from the issuance of this order, the Administrator, in collaboration with the Federal Acquisition Regulatory Council (FAR Council), agency heads, and senior procurement officials, shall amend the FAR to ensure it comprises only those provisions required by statute or necessary to enhance simplicity, usability, and the overall effectiveness of the procurement system, while safeguarding economic and national security interests.
Sec. 5. Aligning Agency Supplements to the FAR
(a) Within 15 days of this order, each agency with procurement authority under the FAR shall appoint a senior acquisition or procurement official to collaborate with the Administrator and the FAR Council on aligning agency practices with FAR reforms and to suggest any agency-specific supplements to the FAR. This group shall work together to identify FAR provisions that clash with the policy goals outlined in section 2 of this order.
(b) Within 20 days, the Director of the Office of Management and Budget, in consultation with the Administrator, will issue a memorandum to agencies detailing the implementation of this order, ensuring coherence and alignment with the overarching policy objectives and modifications to both the FAR and agency supplements.
(c) The memorandum will propose new agency-specific regulations and internal guidelines that facilitate expedited and streamlined acquisitions. In relation to these proposals, the Administrator shall enforce the ten-for-one requirement as stipulated in Executive Order 14192.
(d) The Administrator and the FAR Council will issue interim guidance as necessary until final rules reforming the FAR are enacted.
Sec. 6. Regulatory Sunset
In the process of amending the FAR under section 4 of this order, the Administrator and the FAR Council shall:
(a) Identify all FAR provisions not mandated by statute that will remain in effect;
(b) Consider modifying the FAR so that any identified provisions will automatically expire four years after the final rule is enacted, unless renewed by the FAR Council;
(c) Assess whether any new FAR provision not required by statute, enacted after the final rule, should also include an expiration clause of four years unless renewed by the FAR Council.
Sec. 7. General Provisions
(a) Nothing in this order shall be interpreted to impair or affect:
(i) the authority granted by law to any executive department, agency, or its head; or
(ii) the functions of the Director of the Office of Management and Budget concerning budgetary, administrative, or legislative proposals.
(b) This order shall be implemented in accordance with applicable law and subject to the availability of appropriations.
(c) This order does not create any rights or benefits, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or their officers, employees, or agents, or any other individual.
THE WHITE HOUSE,
April 15, 2025.
