Restoring Common Sense to Federal Procurement

4/15/2025

Executive Orders

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Action Summary

Purpose: Reform the Federal Acquisition Regulation (FAR) to eliminate inefficiencies, reduce bureaucratic overhead, and lower procurement costs by stripping out unnecessary regulations.
Historical Context: FAR, established over 40 years ago and now over 2,000 pages, is widely criticized for being overly complex and impeding efficient procurement, as highlighted by recent Senate and expert reports.
Policy Direction: Create an agile, effective, and efficient procurement system by retaining only those provisions required by statute or essential for sound procurement, while removing outdated or superfluous regulations.
Key Definitions:
- “FAR”: The Federal Acquisition Regulation as codified in title 48 of the CFR.
- “Administrator”: The Administrator of the Office of Federal Public Procurement Policy.
- “Agency”: Any executive or military department, independent establishment, or wholly owned Government corporation as defined by applicable law.
FAR Reform Timeline:
- Within 180 days: The Administrator, in coordination with the FAR Council and agency officials, must amend the FAR to ensure simplicity and usability.
Agency Alignment:
- 15 days: Agencies must designate a senior acquisition official to coordinate with the Administrator on FAR reform and supplemental regulation alignment.
- 20 days: The Office of Management and Budget (OMB), in consultation with the Administrator, will issue a memorandum providing guidance for consistent implementation.
- Interim guidance will be provided until final rules are published.
Regulatory Sunset Provision: Identify FAR provisions that are not statute-required to expire 4 years after the effective date of the final rule unless renewed, including consideration of a similar sunset for new non-statutory provisions.
General Provisions: Ensure that the order does not interfere with existing legal authorities, budgetary processes, or create enforceable rights beyond its intended regulatory reform.

Risks & Considerations

The reform of the Federal Acquisition Regulation (FAR) aims to streamline procurement processes, which could lead to increased efficiency and reduced costs for institutions engaging in federal contracts. However, the transition period may introduce temporary disruptions as agencies and contractors adjust to new regulations.
Vanderbilt University, which may rely on federal contracts for research and development, could face challenges in adapting to the revised procurement framework. This may require additional administrative resources to ensure compliance with the new FAR provisions.
The emphasis on removing unnecessary regulations could potentially lead to a reduction in oversight, increasing the risk of non-compliance or ethical issues in procurement processes. Vanderbilt must ensure that its internal controls are robust to mitigate such risks.
The regulatory sunset provision, which allows certain FAR provisions to expire unless renewed, introduces uncertainty in long-term planning for federally funded projects. Vanderbilt may need to closely monitor these changes to anticipate and adapt to potential impacts on its funding and operations.

Impacted Programs

Vanderbilt’s Office of Sponsored Programs may need to enhance its capacity to navigate the revised procurement landscape, ensuring that research projects remain compliant with federal requirements.
The Procurement and Disbursement Services department at Vanderbilt might need to update its policies and training programs to align with the new FAR regulations, ensuring that all procurement activities are conducted efficiently and in compliance with federal standards.
Research Centers and Institutes that rely on federal contracts could experience changes in funding opportunities and reporting requirements, necessitating strategic adjustments to maintain their research agendas.

Financial Impact

The potential reduction in regulatory burdens could lower administrative costs associated with federal procurement, potentially freeing up resources for other strategic initiatives at Vanderbilt.
However, the uncertainty introduced by the regulatory sunset provision may affect long-term financial planning, as certain funding streams could become less predictable.
Vanderbilt may need to invest in additional training and compliance measures to ensure that its procurement processes align with the new FAR requirements, which could incur short-term costs.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential impacts on federally funded programs.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor the changes to the Federal Acquisition Regulation (FAR) to understand how these reforms might impact the university’s procurement processes, especially in relation to federal contracts and grants. This will be crucial for ensuring compliance and identifying opportunities for streamlined procurement.
Vanderbilt’s Procurement Office should prepare to adapt its processes in response to the streamlined FAR provisions. This includes training staff on new regulations and ensuring that procurement practices align with the updated federal guidelines to maintain eligibility for federal funding.
The Office of Research Administration should evaluate the potential impacts of FAR reforms on research funding and collaborations with federal agencies. By understanding these changes, the office can better support faculty in securing and managing federal research grants.
Vanderbilt’s Legal Affairs Office should review the implications of the FAR reforms to ensure that the university’s contracts and agreements with federal agencies remain compliant with the new regulations. This proactive approach will help mitigate legal risks associated with non-compliance.

Opportunities

The reform of the FAR presents an opportunity for Vanderbilt University to engage in discussions with federal agencies about potential collaborations and partnerships. By positioning itself as a leader in efficient procurement practices, Vanderbilt can enhance its reputation and attract more federal projects.
The emphasis on streamlining procurement processes could allow Vanderbilt’s Business School to develop new educational programs or workshops focused on federal procurement and regulatory compliance, providing valuable training for students and professionals in the field.

Relevance Score: 3 (Some adjustments are needed to processes or procedures due to changes in federal procurement regulations.)

Average Relevance Score: 3.4

Timeline for Implementation

Within 15 days – Each agency exercising procurement authority must designate a senior acquisition or procurement official to collaborate on FAR alignment (Section 5(a)).
Within 20 days – The Director of the Office of Management and Budget must issue a memorandum providing guidance on implementing these changes (Section 5(b)).
Within 180 days – The Administrator, in coordination with the FAR Council and agency officials, must take actions to amend the FAR to meet the revised objectives (Section 4).

The shortest timeline is 15 days, thus requiring an urgent response.

Relevance Score: 5

Impacted Government Organizations

Office of Federal Public Procurement Policy (Administrator): The Administrator is charged with coordinating the reform of the Federal Acquisition Regulation (FAR) and working with the FAR Council as well as senior acquisition officials from various agencies.
Federal Acquisition Regulatory Council (FAR Council): This Council will collaborate with the Administrator and agency heads to revise and streamline the FAR, ensuring that only essential statutory provisions remain.
Office of Management and Budget (OMB): The Director of OMB is responsible for issuing guidance and ensuring agency alignment with the new procurement policies, in consultation with the Administrator.
Federal Agencies Exercising Procurement Authority: All executive departments, military departments, independent agencies, and government corporations using the FAR must designate senior procurement officials to implement the required changes and align supplemental regulations.

Relevance Score: 2 (A moderate number of specific Federal Agencies and offices are impacted by this directive.)

Responsible Officials

Administrator of the Office of Federal Public Procurement Policy – Tasked with leading the comprehensive reform of the FAR and coordinating with key stakeholders.
Federal Acquisition Regulatory Council (FAR Council) – Collaborates with the Administrator and agency heads to review and amend sections of the FAR as needed.
Agency Heads and Designated Senior Acquisition/Procurement Officials – Each agency must appoint a senior official to work with the Administrator and FAR Council to ensure agency alignment with FAR reforms and to propose adjustments to supplemental regulations.
Director of the Office of Management and Budget – Responsible for issuing a guiding memorandum in consultation with the Administrator to ensure uniform implementation of the order.

Relevance Score: 4 (Directives impact agency heads and senior officials charged with high-level policy implementation.)