Top 5 Federal Policy Changes Shaping the GovCon Landscape in 2025

Source: EXECGOV

The first half of 2025 has brought a wave of federal policy changes reshaping the federal contracting space. With executive orders, acquisition reform, oversight mandates and emerging tech requirements, contractors are navigating significant shifts. Below are the five most consequential policy developments so far this year.

1. FAR Overhaul Under Executive Order 14275

In what many are calling the most ambitious rewrite of federal acquisition policy in decades, Executive Order 14275 directs a comprehensive overhaul of the Federal Acquisition Regulation. Signed in April, the order aims to “restore common sense” to procurement by eliminating outdated, duplicative or non-statutory regulatory requirements that have built up over time.

Key mandates include:

• A “10-for-1” rule requiring agencies to eliminate 10 existing regulations for every new one adopted

• A presumption that non-statutory clauses will sunset after four years unless explicitly justified

• A full FAR review by October 2025, led by the Office of Federal Procurement Policy and the FAR Council

Several agencies—including the State Department, SEC and DOC—have already issued class deviations to bypass certain legacy clauses and implement the streamlined rules. While this transitional period may bring inconsistency across solicitations, the long-term outlook points to faster awards, simplified compliance and greater competition.

For contractors, now is the time to revisit internal processes, update boilerplate responses and stay alert to agency-specific rule changes. These early adopters may influence broader procurement trends across the federal landscape in the second half of the year.

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