Restoring Common Sense to Federal Procurement: What the April 2025 Executive Order Means for Your Business

The economic engine of the Federal Government operates on a massive scale, driving nearly a trillion dollars annually into the economy through the procurement of goods and services. For businesses across the nation – from innovative small businesses to major contractors – navigating the path to securing federal contracts represents a significant opportunity. However, the long-standing complexity of government contracting has often felt less like a path and more like an obstacle course.

This challenge is precisely what the White House's Executive Order on Restoring Common Sense to Federal Procurement, issued on April 15, 2025, aims to address. This executive action signals a significant push to dismantle the bureaucratic barriers that have made doing business with the government unnecessarily complex and costly. As an executive team or legal counsel supporting clients in this space, understanding the practical implications of this FAR reform is crucial for positioning your firm for future success in the federal marketplace.

The Problem: A System Burdened by Complexity

For decades, the Federal Acquisition Regulation has grown in scope and complexity, expanding far beyond its original intent. As highlighted in comprehensive reviews and even noted within the Executive Order itself, including references to reports like "Restoring Freedom's Forge" (2024) and a 2019 Advisory Panel study, the FAR's sheer volume – now exceeding 2,000 pages – has created an overly complicated framework. This regulatory burden is not just inconvenient; it actively impedes the efficient delivery of value, increases costs paid for by American taxpayers, and creates significant barriers for businesses, potentially limiting the expansion of the national and defense industrial bases. The need for a more agile and effective procurement system is clear.

The Policy: A Strategic Push for Efficiency

The core policy driving this Executive Order is the commitment to creating the most agile, effective, and efficient federal procurement system possible. This involves a direct assault on unnecessary regulations while simultaneously enabling growth for businesses seeking to do business with the government. The EO mandates a fundamental shift in how the FAR is structured: it should contain only those provisions legally required by statute or demonstrably essential for system simplicity, usability, strengthening the system's efficacy, or protecting vital economic and national security interests. Any FAR provisions that do not serve these core objectives are slated for removal.

Key Actions and Expected Timeline for FAR Reform:

The Executive Order outlines concrete steps and timelines for implementing this procurement reform:

1. Amending the FAR (Within 180 Days): The Administrator of the Office of Federal Public Procurement Policy (OFPPP), in coordination with the FAR Council and agency heads, is directed to take appropriate action within 180 days of the EO's date (meaning by mid-October 2025) to amend the FAR according to the new, streamlined policy. This is the primary mechanism for widespread FAR changes.

2. Aligning Agency Supplements (Immediate Focus): Agencies aren't exempt. Within just 15 days of the EO, each agency with procurement authority must designate a senior official to work with the OFPPP and FAR Council on aligning their agency-specific supplemental regulations. The Director of the Office of Management and Budget (OMB) will issue guiding memorandums within 20 days. A key aspect here is that agencies must propose new, streamlined supplemental regulations and internal guidance, adhering to the "ten-for-one" requirement from Executive Order 14192 for these agency-level additions – meaning for every new agency supplemental regulation proposed, ten existing ones should be identified for removal. This targets the layers of rules added by individual agencies.

3. Considering a Regulatory Sunset: Looking ahead, the EO directs the OFPPP and FAR Council to consider implementing a regulatory sunset clause for non-statutory FAR provisions. This could mean that many FAR rules not mandated by law would automatically expire after 4 years unless actively reviewed and renewed. This introduces a mechanism for ongoing regulatory hygiene.

What This FAR Reform Means for Businesses in the Federal Marketplace:

This Executive Order has the potential to significantly alter the landscape of government contracting. For businesses currently holding federal contracts or aspiring to secure them, the intended outcomes could include:

• Simplified Bidding and Compliance: A leaner FAR aims to reduce the complexity and administrative burden associated with preparing proposals and complying with contractual requirements. This could lead to more efficient operations for federal contractors.

• Reduced Costs: Less red tape inherently means reduced time and resources spent on navigating convoluted rules, potentially lowering overhead and increasing profitability on government contracts.

• Increased Market Accessibility: By removing unnecessary barriers, the EO seeks to make the federal marketplace more accessible, potentially increasing competition and creating new opportunities, particularly for businesses less familiar with the current complex system.

• Faster Procurement Cycles: A more agile system should, in theory, lead to quicker decision-making and contract awards, benefiting both the government and contractors.

While the transition period will require careful attention to evolving rules, the overall direction is towards a more business-friendly and efficient federal procurement process. Our team, including our expanded presence with a New Washington, D.C. Office to Serve Federal and Regional Clients, is closely monitoring these developments to provide timely guidance.

Navigating Regulatory Change in Federal Contracting:

Staying ahead in government contracting means being prepared for regulatory evolution. This Executive Order represents a fundamental shift in philosophy regarding the Federal Acquisition Regulation. Businesses should proactively:

• Monitor official government channels for proposed rule changes.

• Assess how potential FAR amendments could impact their specific contracts and bidding strategies.

• Seek qualified legal and procurement guidance to understand the nuances of the reforms and ensure continued compliance and competitive positioning in the

  federal marketplace.

The move to restore common sense to federal procurement is a significant undertaking. By understanding these changes and preparing accordingly, your business can be well-positioned to thrive in a more streamlined government contracting environment.

Ready to Discuss How FAR Reform Impacts Your Federal Contracts?

The changes outlined in the Executive Order could significantly affect how you pursue and manage government contracts. Don't wait for the new regulations to take full effect. Proactive planning is key to navigating this evolving landscape successfully.

Schedule a Consultationwith our experienced team today to discuss your specific situation and how MZLS can help your business adapt and succeed under the reformed Federal Acquisition Regulation.

Disclaimer: This blog article provides general information based on the Executive Order signed on April 15, 2025, regarding Federal Procurement and FAR reform. Government contracting and federal regulations are complex and subject to change. Businesses should consult with qualified legal and procurement professionals for advice specific to their situation. MZLS provides insights and legal services across various practice areas, including those that may touch upon government contracts and regulatory matters, as well as representing clients in complex litigation like the recent Puerto Rico Supreme Court decision. For specific inquiries, please feel free to Contact Us.