Executive Order 14402: Promoting Efficiency, Accountability, and Performance in Federal Contracting

Executive Order 14402 establishes a federal policy prioritizing fixed-price contracts and performance-based procurement across executive branch agencies. The order seeks to reduce government overspending, improve contractor accountability and increase transparency by limiting the use of cost-reimbursement contracts except in specific circumstances. Agencies are directed to review major contracts, justify non-fixed-price awards and implement procurement reforms that promote cost predictability, performance incentives and stronger stewardship of taxpayer dollars.