Trump Executive Order Calls for Substantial FAR Reform

On April 15, 2025, the White House issued an Executive Order (“EO”), “Restoring Common Sense to Federal Procurement” calling for the reform of the Federal Acquisition Regulation (“FAR”) consistent with the aims of EO 14192, “Unleashing Prosperity Through Deregulation,” which sought to eliminate perceived unnecessary regulatory burdens. Specifically, the April EO notes that the FAR should only contain statutorily required provisions or those “essential to sound procurement,” and it recommends the removal of any FAR provisions that do not advance these objectives.

The EO requires the Administrator of the Office of Federal Public Procurement Policy (“Administrator”) to coordinate with the FAR Council, agency heads, and other appropriate agency senior acquisition and procurement officials to amend the FAR so that it contains only statutorily required provisions or those “necessary to support simplicity and usability, strengthen the efficacy of the procurement system, or protect economic or national security interests.” In carrying out this instruction, the Administrator and FAR Council must: (1) identify all non-statutorily required provisions that will remain in the FAR; (2) consider amending the FAR to set any such provisions to expire four years after the effective date of the final rule reforming the FAR unless renewed by the FAR Council; and (3) consider whether any new FAR provisions not required by statute should include a four-year expiration provision from its effective date, unless renewed by FAR Council. Such actions must be completed within 180 days of the EO issuance (or by October 12, 2025).

The EO similarly seeks to align agency FAR supplements with its reform objectives. Each agency subject to the FAR must designate a senior acquisition or procurement official to work with the Administrator and FAR Council to ensure alignment with this EO, provide recommendations on agency-specific supplemental regulations, and identify and appropriately address FAR provisions that are inconsistent with the EO’s policy objectives. Such designation must occur within 15 days of EO issuance (or by April 30, 2025).

The Director of the Office of Management and Budget, in consultation with the Administrator, must issue a memorandum regarding the EO’s implementation as it relates to both FAR and agency FAR supplements. The memorandum must also propose new agency supplemental regulations and internal guidance that promote expedited and streamlined acquisitions. The Director is to issue this memorandum within 20 days of the EO issuance (or by May 5, 2025).

However, the Administrator must direct appropriate agency and subordinate agencies to comply with EO 14192’s enumerated ten-for-one requirement—that an agency must identify at least ten existing regulations to be repealed in order to promulgate a new regulation.

The Administrator and FAR Council will issue deviation and interim guidance until final rules reforming the FAR are published.