Promoting Efficiency, Accountability, and Performance in Federal Contracting

Executive Order 14402 is an executive action signed by President (name not specified in the text) that directs executive branch departments and agencies to make fixed-price contracts the preferred method of federal procurement (Sec. 2(a)). It requires written justifications and senior approval thresholds for non-fixed-price contracts above set dollar amounts (Sec. 2(b)(i)-(ii)). It orders agencies to review and, where practicable, renegotiate their ten largest non-fixed-price contracts within 90 days and to report semi-annually to the Director of the Office of Management and Budget (Sec. 2(c)(i), 2(d)). This matters because it aims to control taxpayer costs and change how federal contractors work, which could affect jobs, contract terms, and how agencies buy services and goods (Sec. 1).