Executive Order 14402

Promoting Efficiency, Accountability, and Performance in Federal Contracting

Signed 2026-04-30 in effect
Government ReformProcurementContractingSeparation of powers ↗
Government Reform

Further reforms to federal contracting to emphasize performance metrics and accountability.

Section by Section

What each section does, and how they differ.

Sec. 1 Purpose

Establishes that federal procurement has long tolerated unpredictable costs and weak performance incentives; policy directs adoption of private-sector best practices through fixed-price contracting to protect taxpayer dollars and achieve demonstrable returns on investment.

Sec. 2 Default to Fixed-Price Contracting

Directs agencies to utilize fixed-price contracts to maximum extent; requires written justification for non-fixed-price contracts; requires agency head approval for non-fixed-price contracts exceeding specified dollar thresholds by department.

Sec. 3 Implementation

Within 45 days, directs OMB to issue implementation guidance; within 120 days, directs FAR Council to propose amendments and develop training program for program and contracting employees.

Sec. 4 Severability

Standard severability clause: if a court strikes any provision, the rest of the order stands.

Sec. 5 General Provisions

Standard boilerplate: preserves existing agency authority, conditions the order on appropriations, and creates no enforceable private rights.