Promoting Efficiency, Accountability, And Performance In Federal Contracting

Shifts federal procurement toward clearer deliverables, predictable costs, and stronger contractor accountability. Reduces taxpayer exposure to contract overruns and inefficiencies.

What the order does ​

• Requires agencies to use fixed-price contracts as the standard procurement method.
• Mandates written justification and senior approval for most non-fixed-price contracts over set dollar thresholds.
• Exempts emergencies and research/development contracts from approval requirements.
• Directs agencies to review and, where practicable, convert their 10 largest ongoing non-fixed-price contracts to fixed-price models.
• Requires agencies to report biannually to OMB on non-fixed-price contracts and justifications.
• Orders OMB to provide implementation guidance and update regulations and training programs.

Who it affects ​

• Federal government agencies and procurement staff.
• Contractors seeking or performing government contracts.
• Taxpayers funding federal procurement.

Context ​

Exceptions are made for urgent situations, disaster response, and certain research or system development contracts.