On May 5, 2025, a new executive order was signed to speed up how quickly U.S. companies can build and expand pharmaceutical manufacturing facilities. It’s a federal response to one big issue: our supply of essential medicines is still too reliant on foreign sources. For federal contractors, this move changes the landscape. If you operate in pharmaceuticals, construction, logistics, or environmental services, you just got a competitive boost.

The Policy Shift: Making U.S. Manufacturing Easier
The Executive Order directs agencies like the FDA, EPA, and Army Corps of Engineers to eliminate regulatory bottlenecks. Right now, building a pharma facility in the U.S. can take up to 10 years. The new policy pushes agencies to speed up permits, inspections, and approvals across the board. Instead of waiting for redundant clearances, eligible companies will get clearer guidance, faster reviews, and fewer surprises.

The FDA is now required to:

• Reduce duplicative regulations and outdated inspection timelines

• Offer earlier technical input to manufacturers setting up new sites

• Publicly identify foreign facilities that fail to meet compliance

• Clarify the process for shifting production from foreign to U.S. sites

Why This Matters to Government Contractors
This isn’t just for drug manufacturers. Contractors who provide facility construction, environmental permitting, raw materials, packaging, or compliance consulting all stand to benefit.

If your business can support pharmaceutical production in any way, this order is a signal to get registered, certified, and ready. Buyers will be looking for U.S.-based partners. That means:

• An active SAM.gov registration with the right NAICS codes

• Verified small business statuses like SDVOSB, EDWOSB, or 8(a)

• A clear digital footprint through DSBS and Online Capabilities Statements

• Accurate UEI and performance history

The Federal Acquisition Regulation already prioritizes domestic sourcing. This executive order gives agencies more reason to buy from registered, compliant U.S. suppliers.

Real Example: Dig Defence and the Power of Positioning
Dig Defence, a women-owned pest prevention company, used USFCR’s support to fast-track its GSA Schedule acceptance. By verifying its WOSB status and assisting with its SAM registration, they avoided delays and opened new revenue channels. Imagine that same company positioned to support federal pharmaceutical buyers who need hardware solutions in production environments. With the new EO, timing and readiness can be the difference.

Related Vendors May Include:

• Cleanroom designers and HVAC contractors

• Industrial plumbing and electrical contractors

• Software vendors for batch tracking or QA systems

• Material suppliers for sterile containers or bulk active ingredients

• Environmental consultants and permitting specialists

FDA Inspection Equity Could Level the Playing Field
One major industry complaint has been that U.S. facilities are inspected more often and more harshly than overseas ones. This order requires the FDA to correct that imbalance. With new inspection rules and transparency requirements for foreign sites, domestic facilities may finally get fairer treatment.

That means fewer delays and a stronger hand in contract negotiations for domestic vendors.

Don’t Wait for the RFQ to Show Up

Federal agencies like the Department of Veterans Affairs, the Department of Health and Human Services, and the Department of Defense will likely roll out new solicitations tied to this policy. If your registration or UEI is out of sync, or your Capabilities Statement doesn’t reflect pharma-related experience, you’re already behind.

What’s Next?
If you're in pharmaceuticals or support the industry in any way, this is the time to act. Make sure your business is SAM-eligible, properly classified, and positioned for the influx of federal opportunities tied to domestic medicine production. USFCR can help you get there with registration, certifications, and procurement strategies that match the new policy.

FAQ's

What is the goal of the May 2025 Executive Order?
To remove regulatory delays and encourage U.S.-based manufacturing of essential medicines and inputs by streamlining FDA, EPA, and Army Corps review processes.

Who benefits from this order besides pharmaceutical companies?
Contractors in construction, environmental permitting, logistics, materials, and compliance consulting can all support pharmaceutical projects and gain competitive advantages.

Do I need to update my SAM registration or NAICS codes?
Yes, if you want to be considered for contracts tied to this initiative. Accurate NAICS codes and set-aside certifications are critical to eligibility and visibility.

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