Legis
Government operations
Executive order · Wednesday 16 April 2025

Ensuring Commercial, Cost-effective Solutions In Federal Contracts

Federal agencies must favor commercial products and services over custom-built alternatives.

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The order aims to reduce taxpayer costs and procurement delays while expanding federal use of private-sector products and innovation.

What the order does

  • Requires agencies to buy commercially available or adaptable products and services whenever practicable.
  • Orders contracting officers to review open non-commercial procurements within 60 days and justify them with market research and price analysis.
  • Requires senior procurement executives to assess those justifications within 30 days and recommend commercial alternatives when sufficient.
  • Requires written approval or denial before agencies solicit future non-commercial products or services.
  • Directs agencies to report compliance and implementation progress to the Office of Management and Budget within 120 days and annually thereafter.
  • Allows the Office of Management and Budget, consulting with the Office of Federal Procurement Policy, to evaluate proposed non-commercial purchases.

Who it affects

  • Executive departments, military departments, independent federal establishments, and wholly owned Government corporations.
  • Federal contracting officers and senior procurement executives.
  • Businesses offering commercial products and services to the Federal Government.