Promoting Efficiency, Accountability, and Performance in Federal Contracting

The order directs federal agencies to make fixed-price, performance-based contracting the default for procurement and to limit use of cost-reimbursement and other non–fixed-price contracts except where legally necessary or justified by risk, complexity, or research and development needs. It requires agencies (including executive departments and independent establishments) to adopt senior-level accountability for exceptions, tie contractor profit to performance where appropriate, and reduce reliance on cost-reimbursement consulting contracts after noting about $120 billion was obligated on such contracts in FY2024.