Executive Order Establishes Fixed-Price Contracts as Default Procurement Method
What happened
President Donald Trump issued an executive order on September 22, 2026, establishing fixed-price contracts with performance-based considerations as the government’s default and preferred method of procurement. This direction has been incorporated into the Revolutionary FAR Overhaul (RFO), which now requires additional justification for any non-fixed-price approaches.
From govconwire.com
Why it matters
The shift means that the starting point for acquisition decisions now favors fixed-price arrangements. While not all federal contracting will shift wholesale to firm-fixed-price, the stronger presumption in favor of fixed prices changes the landscape for government contractors.
From govconwire.com
Who's involved
- ZuchwilA municipality in the canton of Solothurn, Switzerland.
- RFOThe body undergoing the Revolutionary FAR Overhaul (RFO).
- Donald TrumpAmerican businessman and politician who initiated the RFO via Executive Order 14275.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- RFOSpeculative
The executive order could increase operational risk by establishing fixed-price contracts as the default procurement method.
Keep exploring
The entities involved
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RFO
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