FAR Reform presidential order
On April 15, 2025, the White House issued a sweeping Executive Order aimed at modernizing and simplifying the federal procurement process. Entitled Restoring Common Sense to Federal Procurement, this directive acknowledges what many contractors and procurement professionals have known for decades: the Federal Acquisition Regulation (FAR), now stretching over 2,000 pages, has become an unwieldy barrier to doing business with the government. Despite its original mission to ensure best value and transparency, the FAR is now seen by both internal and external stakeholders as an inefficient and costly burden that stifles innovation and responsiveness.
Citing findings from the 2024 Senate report Restoring Freedom’s Forge and the 2019 Advisory Panel on Streamlining and Codifying Acquisition Regulations, the Executive Order paints a stark picture. These studies highlight how the current procurement framework harms not only the defense industrial base but also the broader spectrum of government spending—from commercial items like laptops to complex weapons systems. In response, the Order mandates that the FAR be purged of any provisions not required by statute or essential to sound procurement practices.
The core objective is to create a more agile, effective, and fiscally responsible procurement system. Agencies are now required to designate senior acquisition officials to align internal supplements with the overarching goals of FAR reform. Within 180 days, the Office of Federal Procurement Policy Administrator, working with the FAR Council and agency heads, must initiate rulemaking to amend the FAR accordingly. Additionally, the Office of Management and Budget will issue a memorandum to guide agencies in implementing these reforms, including the development of new streamlined acquisition procedures and a ten-for-one regulatory offset rule, as established by a prior Executive Order on deregulation.
Perhaps most notably, the reform includes a regulatory sunset provision: any non-statutory FAR clause retained or added will expire after four years unless actively renewed. This ensures that the FAR evolves dynamically rather than remaining static and outdated.
The Executive Order does not alter statutory authority or budgetary controls but sends a clear message: the federal government must shed outdated rules and embrace common sense to maintain its edge in a competitive and rapidly changing global environment.
This summary is based on the Executive Order issued by the White House on April 15, 2025, titled Restoring Common Sense to Federal Procurement. The full text is available on the official White House website.
Disclaimer: This summary is for informational purposes only, does not guarantee accuracy, and does not constitute legal advice.
