On April 15, 2025, President Donald J. Trump signed an Executive Order aimed at enforcing cost-effective procurement practices within the Federal Government. The Order mandates that federal agencies prioritize the use of commercially available products and services, as outlined by the Federal Acquisition Streamlining Act of 1994 (FASA). It instructs contracting officers to review pending contracts for non-commercial solutions within 60 days and to justify any necessary waivers based on market research and price analysis.

The Executive Order seeks to eliminate wasteful spending by addressing the historical overreliance on custom products and services that do not fully utilize the competitive advantages of the private sector. A report from 2019 indicated that the Federal Government could have saved approximately $345 billion over 25 years by adhering to FASA and opting for commercial off-the-shelf IT solutions instead of developing systems from scratch. The Order requires agencies to report their compliance with FASA and the implementation of the new policies to the Office of Management and Budget (OMB) both within 120 days and annually thereafter.

Additionally, this initiative is part of a broader effort by President Trump to modernize federal procurement processes. Previous Executive Orders have aimed at promoting commercial solutions and consolidating procurement functions to reduce inefficiencies and duplication of efforts. The Administration’s focus is on ensuring that taxpayer dollars are spent wisely while improving the efficiency and effectiveness of government services.

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