In what experts are calling the most significant update to federal purchasing practices in decades, President Donald Trump has signed a pair of executive orders that will overhaul how federal agencies acquire goods and services.

The changes mark the most comprehensive attempt to modernize procurement rules since Congress passed the Federal Acquisition Streamlining Act and the Federal Acquisition Reform Act in the 1990s, according to Federal News Network.

Trump’s April 15 executive order criticizes the current Federal Acquisition Regulation (FAR) system as being overly complex and inefficient. The FAR, established in 1984, serves as the central rulebook for federal purchasing and is used by all executive agencies.

Trump stated in the order that the FAR has evolved “into an excessive and overcomplicated regulatory framework.”

He directed that the regulation be pared down to include only those “provisions required by statute or essential to sound procurement,” and that any other language be eliminated.

The sweeping rewrite will be led by the Office of Federal Procurement Policy (OFPP), part of the White House’s Office of Management and Budget (OMB). Under the order, the FAR Council must complete the overhaul within 180 days.

“Led by OFPP, the FAR Council will rewrite the FAR in plain English, eliminate non-statutory and duplicative regulations, remove DEI and wokeness and add buyer guides in place of burdensome and outdated requirements,” the order states.

Second Executive Order Focuses on Commercial Solutions

A second executive order issued April 16 requires federal agencies to prioritize purchasing commercially available products and services. Custom-built systems or unique government solutions would need to receive a waiver from agency leadership before moving forward.

This marks a shift toward encouraging off-the-shelf commercial solutions over time-consuming and costly government-specific systems.

The changes may impact how regulations like Buy American, the Davis-Bacon Act, and the Competition and Contracting Act are applied. While the exact implications remain unclear, Trump’s administration reiterated its support for domestic sourcing, calling it foundational to procurement reform.

In an April 3 fact sheet, the administration said, “Buy American is the epitome of common-sense public policy.”

Contractors Brace for a Period of Uncertainty

While the goal of these reforms is to streamline federal acquisitions, contractors may face a difficult adjustment period. In an April 17 analysis, attorneys at global law firm Dentons warned that the transition could be uneven and unpredictable.

“Contractors may be forced to navigate a fragmented environment where some agencies adopt new deviations and reforms more quickly than others, and contracts almost certainly will be subject to a patchwork of requirements depending on when they were awarded, creating inconsistency across the federal procurement landscape,” said the Dentons team.

That transition could drive up costs for firms doing business with the government. Companies may need to update compliance systems, retrain staff, and revise internal procedures to align with the new rules.

According to Dentons, “The transitional period may increase internal costs because contractors will need to update compliance systems, retrain staff and reassess risk management strategies.”

Tight Deadlines, Broader Regulatory Changes Ahead

Trump’s orders set tight deadlines: agencies must appoint a senior procurement official to coordinate with the FAR Council within 15 days of the April 15 order, and the OMB director must issue guidance to agencies within 20 days.

These directives are part of a broader push by the second Trump administration to speed up government processes. On the same day he signed the FAR overhaul, Trump also ordered agencies to use technology to accelerate permitting reviews for infrastructure projects.

As this sweeping reform takes shape, industry leaders, procurement officers, and contractors will be watching closely — and preparing for a potentially complex rollout.

Originally reported by Julie Strupp in Construction Dive.