President Trump has unveiled a groundbreaking initiative to reform federal procurement policy, aiming at enhancing competition, efficiency, and reducing costs. The announcement highlights an extensive review and rewriting of the Federal Acquisition Regulations (FAR) by the Office of Federal Procurement Policy (OFPP) under the Office of Management and Budget (OMB).
The U.S. government, as the largest global purchaser, spends nearly $1 trillion annually on procurement contracts. According to the President, the existing procurement system has become cumbersome, benefiting established vendors who can afford high compliance costs, while hindering potential competition and innovation.
The OFPP, leading this initiative, plans to simplify the FAR by eliminating unnecessary and repetitive regulations. The new framework aims to remove diversity, equity, and inclusion mandates deemed outdated, and replace them with practical buyer guides, emphasizing results and cost-effectiveness.
Currently, the FAR spans over 2,000 pages, containing about 3,000 directives, which have been criticized for creating administrative roadblocks. Such complexity is blamed for inefficiency, often delaying acquisitions and escalating expenses. For example, a case was highlighted where a mission-support contract faced significant delays due to extensive legal and procedural reviews, yielding no strategic change.
President Trump's administration intends this overhaul, named the Revolutionary FAR Overhaul (RFO), to streamline the acquisition process, facilitate entry for small businesses and startups, and eliminate redundant bureaucracy.
“This RFO will reduce more than 40 years of bureaucratic buildup that will unleash our procurement system with generational change and results. We are Making America Great Again,” stated OMB Senior Advisor Kevin Rhodes. Additionally, a new website will be established to enhance transparency, allowing stakeholders and the public to track regulatory changes, access buyer guides, and monitor the procurement procedures.
