Trump orders federal agencies to default to fixed-price contracts

6 articles · Updated · Bloomberg · Apr 30

The executive order, signed on Thursday, gives agencies 90 days to renegotiate existing contracts while the Federal Acquisition Regulatory Council prepares procurement rule changes.
It shifts purchasing away from cost-reimbursement deals, which Trump said can fuel runaway spending, and urges agencies to use deviations meanwhile for added flexibility.
The move aims to reshape federal procurement practices by making fixed-price agreements the standard vehicle for government buying across agencies.

Can federal agencies renegotiate their largest contracts in 90 days, or will exceptions make this cost-cutting order ineffective?

Will forcing fixed prices truly save taxpayer money, or will contractors just inflate bids to cover unforeseen risks?

Will shifting financial risk to contractors stifle the cutting-edge research and development essential for national security and innovation?