The Department of the Interior has issued a new executive order aimed at reducing regulatory burdens and cutting costs on Bureau of Reclamation (BOR) construction and maintenance projects—changes the administration says will ultimately benefit farmers, irrigation districts, and power customers across the West.
Order No. 3446 authorizes local government partners—such as irrigation districts, counties, and public utilities—to take on greater responsibility for procuring and managing federally funded construction and maintenance work at BOR facilities. The move is designed to streamline project delivery, reduce administrative delays, and lower overall costs.
According to the order, many partners have demonstrated they can complete similar projects up to 20% cheaper and more quickly under their own non-federal procurement systems. Federal delays, rising material costs, and regulatory requirements have long been a point of frustration for water users who must repay the government for project investments.
The administration argues that shifting more control to “qualified entities” will reduce costs for producers and consumers by accelerating infrastructure improvements tied to water storage, irrigation systems, and hydropower facilities. The order aligns with President Trump’s broader deregulatory push and follows the procurement reforms outlined in Executive Order 14275, “Restoring Common Sense to Federal Procurement.”
BOR will now begin modifying contracts to allow qualified partners to manage project work, provided they demonstrate financial stability, engineering expertise, and proven project management capacity. The agency is required to release detailed implementation guidance following updates to the Federal Acquisition Regulation.
The order also directs BOR to integrate the policy with ongoing efforts to streamline environmental compliance, technical reviews, cost-share programs, and internal project initiation processes. Within 90 days of the next FAR update, the Bureau must report progress to the Assistant Secretary for Water and Science.
The Department will also examine whether similar partner-led contracting models could expand to other agencies, including the Bureau of Indian Affairs and Bureau of Indian Education, where comparable tribal contracting authorities already exist.
Interior officials say a targeted communications campaign will soon roll out to water districts, counties, national associations, and other stakeholders to explain how the changes could lower infrastructure costs and speed up critical project work.
The order takes effect immediately and remains in force unless rescinded or replaced.
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BOI – 2025
