The Preference for Fixed-Price Contracts Receives Accountability Boost

The preference for fixed-price contracts receives accountability boost

Experts say the new EO’s requirements could add time and friction to the acquisition process at a time when the administration is trying to reduce complexity.

Trump Signs Order Targeting ‘Bloated Overhead’ in Federal Contracts

President Donald Trump signed an executive order Thursday that seeks to address longstanding problems in the federal government’s contracting system, citing “unpredictable costs,” “bloated overhead,” and weak performance incentives that have driven up spending and reduced accountability. In a new policy directive, officials said the current model has too often failed to protect taxpayer dollars or ensure contractors deliver on time. “Federal pro…

Trump orders big change to federal contracting structures

The White House wants to revamp federal contracting practices by making cost-reimbursement structures the exception, not the rule, per an executive order signed Thursday. President Donald Trump’s order calls on the federal government to view fixed-price contracts with performance-based considerations as “the default and preferred method of procurement.” Shifting to fixed-price deals would “advance cost predictability and budget discipline” while…

Promoting Efficiency, Accountability, and Performance in Federal Contracting

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered: Section 1.  Purpose.

Trump Order Pushes Fixed-Price Contracts in Federal Agencies

The New Executive Order on “Promoting Efficiency, Accountability, and Performance in Federal Contracting”: What Federal Contractors Need to Know

On April 30, 2026, President Trump issued an Executive Order (EO) titled, “Promoting Efficiency, Accountability, and Performance in Federal Contracting.”  This EO directs agencies to make fixed-price contracts the default form of contracting, and requires agency officials to execute written justifications to use other forms of contracting.  Of particular note for large contractors, the EO directs that, “[w]ithin 90 days of the date of this order…