Executive Order 14275: Legal and Operational Impacts on Federal Contractors
By On April 15, 2025, President Donald J. Trump signed Executive Order 14275, titled Restoring Common Sense to Federal Procurement, initiating a comprehensive overhaul of the Federal Acquisition Regulation (FAR). This directive aims to streamline the federal procurement process by eliminating unnecessary regulatory burdens and enhancing efficiency. The Executive Order acknowledges that “federal procurement under the FAR receives consistently negative assessments regarding its efficiency” and mandates that the FAR be amended to include only provisions “required by statute or that are otherwise necessary to support simplicity and usability, strengthen the efficacy of the procurement system, or protect economic or national security interests.”
For the construction industry, these reforms could have significant implications. By simplifying procurement regulations, the role of contracting officers may evolve, potentially leading to more streamlined project oversight and expedited decision-making. Additionally, the emphasis on cost-effectiveness could result in increased competition and pressure on contractors to offer more competitive pricing, potentially impacting profit margins. Ultimately, these changes aim to accelerate the federal construction process, reduce administrative overhead, and foster a more agile and responsive procurement environment.