President Donald J. Trump issued an executive order on April 30, 2026, shifting federal procurement toward fixed‑price contracts to improve cost predictability and accountability. The order states that, except for emergencies or research and development projects, executive‑branch agencies should use fixed‑price contracts as the default. Non‑fixed‑price contracts must be justified and approved by an agency head if their value exceeds set thresholds ($100 million for DoW, $35 million for NASA, $25 million for DHS, $10 million for others). Within 90 days, agencies must review their ten largest non‑fixed‑price contracts and seek to convert them to fixed‑price arrangements, while exempting emergency, disaster, or R&D contracts. Agency heads will report semi‑annually to the Office of Management and Budget on non‑fixed‑price approvals and opportunities to convert. The White House will issue guidance within 45 days, and the Federal Procurement Policy Administrator will propose regulation changes and training programs within 120 days.
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