Ensuring Commercial, Cost-Effective Solutions in Federal Contracts
The order requires all federal agencies to demonstrate why a commercially available product or service cannot meet their needs before purchasing custom-built or government-unique solutions, enforcing a preference Congress established in the 1994 Federal Acquisition Streamlining Act.
Establishes a new approval and reporting chain — running from individual contracting officers up through agency procurement chiefs and ultimately to OMB — to catch and redirect non-commercial procurements that could be filled by existing market offerings.
What this order does
What it orders
The order directs every federal agency to default to commercially available products and services in procurement, with a formal justification process required before buying custom or government-unique alternatives. Within 60 days, senior procurement officials (called "approval authorities") must order their contracting officers to inventory all open solicitations for non-commercial items and submit written applications explaining why a commercial option cannot meet the need, backed by market research and price analysis. Approval authorities then have 30 days to review those applications, return deficient ones for additional research, and push agencies toward commercial alternatives where feasible. Going forward, any new non-commercial procurement requires written approval from the approval authority, who may consult OMB and the Administrator for Federal Procurement Policy.
Within 120 days of signing, and every year after, each agency's approval authority must submit a compliance report to the OMB Director. The order does not change underlying procurement statutes, create new legal rights, or guarantee any specific funding; its requirements apply subject to appropriations and existing law.
Who it affects
All federal executive agencies and their contracting officers who initiate procurement actions. Defense and civilian agencies with pending solicitations for custom or government-unique systems will face the most immediate review burden. Private-sector companies offering commercial products and services may gain expanded access to federal contracts.
Why it matters
Agencies currently pursuing custom-built government systems may be required to cancel or revise those procurements in favor of off-the-shelf commercial alternatives. Contractors who build government-unique systems could see fewer sole-source awards, while commercial technology vendors gain a stronger presumption in their favor.
What must happen and when
How the order is supposed to work
The order runs in two phases. First, a one-time sweep: contracting officers audit all open non-commercial solicitations and submit justification packages to their agency's senior procurement executive (the "approval authority") within 60 days; that official has another 30 days to assess and act. Second, an ongoing gate: every future non-commercial procurement must clear written approval from the approval authority before proceeding, with optional OMB consultation available. Annual compliance reports to the OMB Director create a recurring accountability check. No enforcement mechanism beyond the reporting chain is specified.
Actions and deadlines
- Approval authorities direct contracting officers to review all open non-commercial solicitations and compile justification applications
- Approval authorities assess compliance of submitted applications and make recommendations toward commercial alternatives
- Each agency's approval authority submits a FASA compliance and implementation report to the OMB Director
- Each agency's approval authority submits annual compliance and implementation report to the OMB Director