Government Overhauls Buying Rules to Trim Trillion-Dollar Waste
Published Date: 4/18/2025
Presidential Document
Summary
The government is fixing its super complicated buying rules to make shopping for goods and services faster, easier, and less costly. This change affects all federal agencies and the companies that work with them, aiming to save taxpayers money and speed up purchases starting now. By cutting red tape in the Federal Acquisition Regulation, the government plans to spend nearly $1 trillion smarter every year.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Major Rewrite of the FAR Rules
The Federal Acquisition Regulation (FAR) must be amended so it only keeps rules required by law or needed for simplicity, usability, procurement effectiveness, or national/economic security. The Administrator must begin those amendments within 180 days of April 15, 2025, affecting all agencies and the companies that do business with the Federal Government and the nearly $1 trillion in annual federal procurements.
Four-Year Sunset for Nonstatutory Rules
The order directs the Administrator and FAR Council to consider making any FAR provisions not required by statute expire 4 years after the final rule's effective date unless the FAR Council renews them. It also directs consideration that new nonstatutory FAR provisions include a 4-year expiration unless renewed.
Policy To Expand Industrial Bases
The order states policy goals to remove undue barriers and to allow expansion of the national and defense industrial bases by simplifying procurement rules. This is an explicit objective in the order’s procurement reform policy.
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Key Dates
Department and Agencies
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