By the authority of the President, a new directive aims to reduce unnecessary government spending by prioritizing commercial and cost-effective solutions in federal contracts. The administration plans to minimize custom products and services procurement in cases where commercial alternatives are available and suitable, thereby integrating innovations from private enterprises into government procurement processes.
"My Administration will enforce existing laws directing the Federal Government to utilize, to the maximum extent practicable, the competitive marketplace and the innovations of private enterprise to provide better, more cost-effective services to taxpayers," the President stated.
The policy mandates that agencies procure commercially available products and services and adheres to the Federal Acquisition Streamlining Act of 1994, Public Law 103-355, as amended (FASA).
Key definitions within the order include an "Agency," referring to executive departments, military departments, independent establishments, and wholly-owned Government corporations, and "Approval authority," regarding the senior procurement executive responsible for acquisition system management within an agency.
Each agency's contracting officers are instructed to review open agency solicitations for non-commercial products or services within 60 days of the order. The reviews should determine the availability of commercial solutions, supported by market research and price analysis, and shall be submitted to the agency's approval authority.
Within 30 days of receiving the proposed applications, the approval authority shall assess compliance with FASA, determine areas needing improvement, and recommend alternative commercial products or services. Agencies are required to report progress to the Office of Management and Budget (OMB) within 120 days and annually.
The order gives oversight responsibilities to agency contracting officers for proposed non-commercial procurements and involves the OMB Director when needed, ensuring thorough market research and price analysis validation.
General provisions indicate that the order does not affect existing legal authority or functions and is contingent on law and appropriations availability. It emphasizes that no new rights are created by this order enforceable against the United States or its associates.
"Nothing in this order shall be construed to impair or otherwise affect: the authority granted by law to an executive department or agency, or the head thereof," the order states.
The directive, signed by President Donald J. Trump, is dated April 15, 2025, and was issued from The White House.
