If you’ve ever thrown your hands up in frustration at federal procurement, you’re not alone, especially if you’re a small or non-traditional business. For years, the government’s own rules have kept the most innovative, cost-effective solutions locked outside the gates. This, while agencies default to expensive, custom-built systems or hang on to half-empty offices. But with the latest Executive Orders signed in April 2025, that landscape is about to get a lot more welcoming for businesses ready to bring commercial efficiency and creativity to the public sector.
Commercial-First Procurement: The End of “Custom by Default”
Let’s start with what, for many contractors, will be a game changer: the April 16th Executive Order titled “Ensuring Commercial, Cost-Effective Solutions in Federal Contracts.” On paper, the government should have been “preferring commercial solutions” ever since the Federal Acquisition Streamlining Act of 1994 (FASA). In practice, that preference has too often gotten buried under a pile of exceptions, waivers, and risk aversion. Agencies have frequently defaulted to custom-developed, “government-unique” solutions, which have left most commercial innovations and competition on the sidelines.
The administration’s new EO turns that old system on its head. Now, every federal agency is required to review all open solicitations for non-commercial products and services, and every contracting officer must justify why a commercial alternative isn’t being used. These justifications aren’t rubber stamps; they go straight to the agency’s senior procurement executive, who is then tasked with scrutinizing whether market research and cost analysis have really been done—and if not, the requirement gets bounced back for another look.
It’s worth noting that these changes are likely to send ripples through acquisition offices and already short-staffed contracting shops. With many agencies facing a shrinking workforce, the extra layer of justification and review required by this new EO could actually add to acquisition professionals’ workloads. Rather than accelerating the process, the added steps for documenting and vetting commercial solutions might initially create new bottlenecks—or even slow things down further—until teams adapt. In other words, while the intent is to make procurement smarter and more cost-effective, the rollout could put even more strain on busy contracting staff, at least in the short term.
Those who are supporting innovative, market-driven companies can help contracting professionals and the companies they serve by preparing them for these justification requirements. Agencies must now prove that custom solutions are necessary. If your company’s solution exists in the commercial world—even if it needs some tweaks to fit government needs—you’re in a stronger position than ever to win new business. If you’ve been dependent on developing customized solutions for government-specific needs, contracting officers will now be required to justify the purchase of your products. You can help your government customers by comparing your solutions with similar commercially available solutions side by side. This can help provide them with the information they need to craft those justifications.
This EO also assigns real accountability to the words. Agencies must submit annual reports on their compliance with commercial first principles, and the Office of Management and Budget (OMB) will be watching. That means every time a government office tries to justify a custom building, they’ll need compelling evidence to back it up. No more hand-waving.
If you’re a commercial technology provider, logistics firm, facilities manager, or service innovator, you’ll suddenly have a much more straightforward path into the federal market. It also serves as a wake-up call to dust off those capability statements, make sure your value proposition aligns with government pain points, and be ready to explain how your solution outperforms old bespoke models. If you’re a legacy government contractor who’s built your business on custom projects, now’s the time to build your commercial partnerships and rethink your approach.
From Empty Offices to Smart Spaces: A Real Estate Revolution for Agencies
Procurement is only half of the April Executive Order story. The “Restoring Common Sense to Federal Office Space Management” EO is designed to tackle another different longstanding pain point: the government’s chronic mismanagement of its own real estate. If you’ve ever visited a sprawling federal office building and wondered why half the desks are empty, you’re not alone. If you’re a taxpayer, you’ve helped foot the bill for all that unused space.
The “Common Sense” EO asks agencies to do what private-sector businesses have been doing for years—take a long, hard look at how much space they need, consolidate where possible, and shed what’s no longer necessary. With hybrid and remote work now cemented in agency culture, it no longer makes sense to pay for row after row of vacant cubicles or to hang on to underutilized leases out of habit. This EO’s impact on the return-to-work order that most federal employees received earlier this year has yet to be seen.
Agencies are being ordered to assess their space usage, renegotiate leases, and prioritize office consolidations. The EO encourages the disposal or reconfiguration of unnecessary properties, investments in shared and flexible workspaces, and the adoption of space utilization benchmarks. This isn’t just about saving money (though the potential savings are massive), it’s about right-sizing government operations for the new administration and post-pandemic world. For contractors specializing in facilities management, workspace design, or office technology, this EO creates a golden opportunity to pitch solutions that help agencies achieve these mandates.
The “Common Sense” EO is impactful because it explicitly ties real estate management to mission needs and employee behavior, not just legacy assumptions. It also holds agency leadership directly accountable for results. You can expect to see more RFPs and RFIs related to occupancy analytics, workspace optimization, and flexible real estate models.
As with all the April Executive Orders, any evidence of impact will need to come from agency action to implement the guidance contained in them. Most of these initiatives are not new. Prior administrations have tried hard to reform acquisitions, both Clinton and Carter issued executive orders aiming to reform federal property management, and the government has had a designated preference for commercial products and services since 1994 with the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355, as amended) (FASA). The problem with these prior initiatives is that they all faced resistance and inaction.
These latest EOs will only hold weight if they can compel agencies to act and implement the direction and guidance these Executive Orders direct. Ultimately, actions will always speak louder than words written on paper.
What Contractors and Small Businesses Need to Do Now
So, what’s the bottom line for companies wanting to capitalize on this new era of “common sense government”?
First, if you sell a commercial product or service, even if you haven’t traditionally targeted government, now’s your chance. Look for agencies reviewing or justifying current solicitations, and be proactive in demonstrating where your solution can replace or improve on custom builds. Get familiar with the new reporting and justification requirements. Make your case not just to contracting officers, but to their senior executives who now have veto power over custom procurements.
Second, for those in the facilities and property management space—or any business that touches government real estate—track agency moves to consolidate, dispose, or upgrade office space. Come to the table with data-driven proposals and a clear understanding of how your services can save money and drive better utilization.
Third, large and small companies should expect a more dynamic, competitive landscape. Both EOs are designed to lower barriers for non-traditional players and raise performance expectations for the old guard. Be ready to showcase proof of value and real-world impact, not just box-checking compliance.
For years, agencies and contractors alike have bemoaned the slow pace of federal change. These new Executive Orders are an unmistakable sign that the rules of the game are changing and that, for once, common sense may finally get its day in government procurement and operations.
For those of us helping small businesses navigate the federal sector, the message couldn’t be clearer: don’t wait. The demand for proven, efficient, and flexible commercial solutions is about to skyrocket. If you’re ready to jump in, the federal government just cleared a path. So, step up, deliver value, and help lead the way into a smarter, more cost-effective future.