Federal Acquisition Regulation Set for Overhaul Under Executive Order 14173
On April 15, 2025, the White House issued Executive Order 14173, titled “Restoring Common Sense to Federal Procurement,” directing a full review and revision of the Federal Acquisition Regulation (FAR). Under the Executive Order, the FAR Council must revise the FAR within 180 days, retaining only provisions that are either required by statute or critical to maintaining procurement simplicity, promoting efficiency, improving usability, or protecting national security interests. The order also instructs the FAR Council to eliminate duplicative, obsolete, and overly burdensome provisions and to rewrite the FAR using plain language principles to improve clarity and accessibility.
In addition to the FAR Council’s work, each executive agency must designate a senior official with acquisition or procurement authority within 15 days of the order’s issuance. These officials will support efforts to review and align agency-specific acquisition regulations with the revised FAR.
The objective of the Executive Order is to streamline the procurement process, modernize acquisition standards, and reduce regulatory burdens while maintaining the integrity of federal contracting practices.
Legal Perspective: Why It Matters
Executive Order 14173 initiates a substantial revision to the Federal Acquisition Regulation, which governs procurement activities for most federal agencies. Contractors should be aware that revisions will focus on statutory requirements and essential procurement practices, and that duplicative or discretionary provisions may be removed or reworded. As a result, portions of the FAR that businesses rely on for contract formation, proposal preparation, and performance compliance could be modified or eliminated.
Although the Executive Order directs the FAR Council to complete revisions within 180 days, any changes to the FAR will still be subject to the notice-and-comment rule making process under the Administrative Procedure Act. Until final revisions are adopted and effective, the existing FAR remains in place, and contractors must continue to comply with current requirements when pursuing or performing government contracts.
For more information, see: Executive Order 14173, Restoring Common Sense to Federal Procurement.
More about Michael Segal
Michael is a business attorney focused on delivering efficient and effective results to his clients. His experience includes both litigation and transactional representation for companies and governmental entities in aerospace, defense, securities, real estate, and general business matters. A former F-15 fighter pilot with over 1,500 flight hours, Michael served as an instructor pilot in the U.S. Air Force before joining the Air Force Reserve with the 701st Combat Operations Squadron in California. He dedicates pro bono efforts to helping veterans with compensation claims and startup guidance.
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