Restoring Common Sense to Federal Procurement
Executive Order 14275, titled Restoring Common Sense to Federal Procurement, directs a sweeping reform of the Federal Acquisition Regulation (FAR) framework to make federal procurement faster, simpler, and more focused on essential statutory requirements and national security. The order signals a shift away from a 2,000-plus-page regulatory regime toward a streamlined system by: (1) requiring the FAR to contain only provisions mandated by statute or necessary for simplicity, usability, efficacy, or national/economic security; (2) pushing for a major FAR reform within 180 days; (3) aligning agency supplements to the FAR and pursuing expedited, streamlined acquisitions; (4) incorporating sunset provisions so nonstatutory provisions expire after four years unless renewed; and (5) maintaining general agency authority and budget processes while not creating legal rights. The initiative leans on a broader deregulation framework (referencing Executive Order 14192) to achieve a ten-for-one deregulation goal in agency supplemental rules and guidance. The overall aim is to reduce unnecessary regulatory burden, accelerate procurement timelines, and bolster the robustness of the procurement system, while preserving core statutory authorities and budgetary constraints. The reforms are framed as improving efficiency, protecting economic and national security interests, and supporting a more agile procurement process across federal agencies and their suppliers.
Key Points
- 1Purpose and policy: The FAR is too large and complex; reform should keep only statutorily required provisions or those essential for simplicity, usability, efficacy, or national/economic security, while removing nonessential rules.
- 2Reform timeline and actions (Sec. 4): Within 180 days, the Administrator (Office of Federal Public Procurement Policy) in coordination with the FAR Council and agency heads must amend the FAR to ensure it contains only statute-required provisions or those necessary for simplicity and national/economic security.
- 3Agency alignment and guidance (Sec. 5):
- 4- Within 15 days, each procurement-designated agency must appoint a senior official to work with the Administrator and FAR Council to align agency supplements with FAR reform and address inconsistencies.
- 5- Within 20 days, the Director of the Office of Management and Budget (OMB), with the Administrator, must issue guidance to ensure consistent implementation and alignment.
- 6- The guidance will propose new agency supplements and internal guidance aimed at expedited, streamlined acquisitions, and agencies must pursue a ten-for-one deregulation approach (in line with EO 14192).
- 7- The Administrator and FAR Council may issue deviations and interim guidance as needed before final rules are published.
- 8Regulatory sunset (Sec. 6): For amended FAR provisions, identify provisions not required by statute that remain, and consider sunset of such provisions four years after the final rule’s effective date unless renewed by the FAR Council. Any new nonstatutory FAR provisions adopted after the final rule should include a 4-year sunset unless renewed.
- 9General provisions (Sec. 7):
- 10- The order does not diminish existing authority of departments/agencies or the Director of OMB’s budget-related functions.
- 11- Implementation must comply with law and available appropriations.
- 12- The order does not create enforceable rights in any party.