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

What the order contains

Section headings exactly as they appear in the official text.

• Sec. 1. Purpose
• Sec. 2. Default to Fixed-Price Contracting
• Sec. 3. Implementation
• Sec. 4. Severability
• Sec. 5. General Provisions

Section 1, quoted from the order

Verbatim text from the signed document. These are the words of the document, not SaveYourState’s.

The American people expect their Government to operate with integrity, efficiency, and transparency. For too long, Federal procurement has tolerated unpredictable costs, bloated overhead, and weak performance incentives. The United States Government must adopt the best business practices to protect taxpayer dollars, hold contractors accountable, and achieve demonstrable returns on investment. Many private-sector contracts focus on driving performance rather than ever-increasing costs, often dictating a fixed cost for a well-defined outcome. Fixed-price contracts are characterized by clearly defined outcomes and deliverables on predictable timelines for fixed prices that generally are not adjusted based on contractors' costs, and often tie profit to the contractors' performance, rewarding work that exceeds expectations and penalizing subpar performance. […]