in effect
This is Executive Order 14271, signed April 15, 2025, a presidential directive to federal agencies about how they buy products and services. It orders agencies to favor commercially available (off-the-shelf) products and services over custom-built, government-unique ones “to the maximum extent practicable,” citing the Federal Acquisition Streamlining Act of 1994 (FASA). It sets up a review-and-approval process for any purchase of non-commercial items.
Within 60 days, each agency’s senior procurement executive (“approval authority”) must have contracting officers review all open purchase requests for custom or government-unique items and bundle each into an application justifying why a commercial option won’t work, backed by market research and price analysis. The approval authority then has 30 days after receiving each application to check it against FASA, fix deficiencies (including sending it back for more research), and steer buyers toward commercial options where those would suffice. Within 120 days and every year after, each agency must report its compliance and progress to the Office of Management and Budget (OMB). Going forward, any proposed non-commercial purchase needs written approval or denial from the approval authority, who may ask OMB to review the justification and recommend approval or denial in writing.
Federal executive agencies, military departments, independent establishments, and wholly owned government corporations are directly affected, along with their contracting officers, senior procurement executives, and OMB, which gains an oversight and reporting role. Companies that sell commercial products and services may see more government business, while those providing custom or government-unique work face added justification hurdles. The order states it creates no legally enforceable rights for any party and must be carried out consistent with existing law and available funding.