The federal government is the largest buyer of goods and services in the world, yet for many small business contractors, accessing that market has long been a frustrating, complex, and costly process. A new Executive Order signed April 15, 2025 titled “Restoring Common Sense to Federal Procurement” aims to change that, and in doing so, it creates a wave of opportunity for small businesses to participate more competitively in the federal marketplace.
At the heart of the order is a commitment to simplify the Federal Acquisition Regulation (FAR), a detailed 2,000-page framework that, while originally intended to ensure consistency and transparency, has evolved into a barrier for many prospective vendors. This overregulation has especially burdened small businesses that lack the legal teams and compliance infrastructure of large government contractors.
Cutting the Red Tape
Under the new Executive Order, the FAR will be streamlined to include only regulations required by statute or necessary to protect national or economic security. Unnecessary rules will be removed, and future additions will be subject to a “regulatory sunset” clause, automatically expiring after four years unless renewed.
For small businesses, this is a game-changer! It means fewer administrative hoops, faster onboarding, and more focus on performance over paperwork.
The order also directs agencies to align their internal procurement policies with this simplified framework, removing conflicting and duplicative rules that have historically slowed acquisition cycles. As a result, we should see a more agile and consistent procurement environment, regardless of which federal agency you’re working with.
More Access, Less Complexity
One of the biggest wins for small business contractors is the order’s focus on removing undue barriers to entry. By reducing redundant processes and encouraging the use of commercial best practices, the new procurement system will better accommodate innovative and cost-effective small business solutions.
With fewer regulations to navigate, small firms can now compete more effectively for contracts without the overwhelming compliance burdens that previously tilted the playing field in favor of larger vendors.
Encouraging Efficiency and Innovation
The Executive Order also encourages acquisition personnel to focus on efficiency, value, and speed rather than rigid adherence to outdated bureaucratic procedures. This creates room for more flexible, risk-tolerant procurement strategies, opening the door for small businesses offering unique or emerging technologies to gain serious traction.
Moreover, the alignment of agency-specific regulations through centralized oversight by the Office of Management and Budget ensures that policy consistency and procurement simplicity become the new norm, not the exception.
Final Thoughts
The “Restoring Common Sense to Federal Procurement” Executive Order sends a clear message to bureaucrats. The Administration is serious about making it easier and more efficient for businesses, especially small businesses, to work with the government.
By simplifying the FAR, streamlining agency rules, and eliminating unnecessary red tape, the government is unlocking new pathways for innovation, competition, and real value to the American taxpayer.
For small business contractors, this reform isn’t just regulatory housekeeping, it’s an invitation to engage, compete, and grow by selling to the world’s largest buyer!
