The Trump administration is overhauling how the federal government buys goods and services—forcing agencies to turn to the private sector first in a push to cut costs and eliminate red tape.
At a Glance
- Federal agencies ordered to prioritize market products
- All custom contracts face immediate 60-day review
- Procurement regulations to be slashed and rewritten
- OMB demands annual compliance reports
- Private consultants rushing to fill federal gaps
New Rules Favor Commercial Over Custom
A sweeping Executive Order signed in April 2025 by President Donald Trump is forcing federal agencies to abandon custom-built solutions and prioritize buying from the open market. The directive, titled Ensuring Commercial, Cost-Effective Solutions in Federal Contracts, mandates that agencies first consider readily available commercial products and services before requesting specialized alternatives.
The move builds on the Federal Acquisition Streamlining Act of 1994 (FASA), which encourages government entities to avoid reinventing the wheel. As reported by the White House, agencies must now justify any exceptions by submitting formal waiver requests within 60 days—a move expected to cut down on wasteful spending and bureaucratic delays.
Watch the White House’s report on the incident at Trump Signs Order to Boost Commercial Procurement.
FAR Overhaul Targets Bureaucratic Bloat
A second Executive Order, Restoring Common Sense to Federal Procurement, takes direct aim at the Federal Acquisition Regulation (FAR), the dense rulebook that governs how the federal government does business. The order requires the administration to streamline these procurement rules, paring them down to only those required by statute or deemed essential for efficiency and national security.
According to Reuters, the goal is to cut red tape that slows down procurement cycles and discourages private-sector participation. A separate Reuters report emphasized the administration’s intent to strip away outdated or redundant clauses that make it harder for vendors to compete for government contracts.
Oversight, Reporting, and Industry Support
The Office of Management and Budget (OMB) has been tasked with monitoring agency compliance. Within 120 days, agencies must submit their first status report and continue updating OMB on an annual basis. This reporting requirement is meant to inject a new level of accountability into how taxpayer dollars are spent.
In response to the shift, firms like Baker Tilly are offering support services to life sciences and tech companies impacted by the new procurement rules. Their advisory packages include strategy development, regulatory compliance, and integration with federal pricing systems.
Another key player, PWCPA PC, is helping businesses navigate Defense Contract Audit Agency (DCAA) compliance while optimizing cost recovery and maintaining financial strategy. These services are proving essential as agencies pivot to faster, more competitive contracting models.
Market Over Mandates?
As the White House tweeted, “Ensuring commercial, cost-effective solutions in federal contracts is critical in maximizing taxpayer dollars and fostering market innovations.” These executive actions suggest a broader shift toward outsourcing, deregulation, and privatization in federal operations.
But the long-term impact remains unclear. While supporters argue the reforms will reduce inefficiencies, critics worry they could open the door to rushed procurements or reduced oversight. What’s certain: the way Washington does business is changing—and fast.
