Executive Order EO 14402
Close Promoting Efficiency, Accountability, and Performance in Federal Contracting Signed Donald Trump · Apr 30, 2026
Federal agencies must use fixed-price contracts by default instead of cost-reimbursement contracts to control spending.
Does not create new legal authority; it directs agencies to use procurement powers they already have. Does not appropriate funding or specify how agencies will meet targets within existing budgets.
What it does (8) Purpose Identifies approximately $120 billion obligated on cost-reimbursement consulting contracts in Fiscal Year 2024 Default to Fixed-Price Contracting Department of War non-fixed-price contracts exceeding $100 million require agency head approval NASA non-fixed-price contracts exceeding $35 million require agency head approval Department of Homeland Security non-fixed-price contracts exceeding $25 million require agency head approval Other agency non-fixed-price contracts exceeding $10 million require agency head approval Agencies must review and attempt to restructure their 10 largest non-fixed-price contracts within 90 days Implementation OMB must issue implementation guidance within 45 days Federal Procurement Policy Administrator must propose rule changes and develop training within 120 days Read it on the Federal Register