Kevin Rhodes stepped down as the Senate-confirmed administrator of the Office of Federal Procurement Policy on September 4, 2026, but continues to lead the administration's major Federal Acquisition Regulation overhaul and cost accounting standards reform as a special government employee. While the White House requested the arrangement to maintain continuity, former federal acquisition officials criticize the move as highly unusual, warning that it reduces transparency and creates double standards regarding remote work rules.
Rhodes' transition to a special government employee role
- ▪The White House requested Kevin Rhodes stay on as a special government employee to maintain continuity and carry federal procurement priorities across the finish line.
- ▪Kevin Rhodes stepped down as the administrator of the Office of Federal Procurement Policy on September 4, 2026, after serving 18 months at the Office of Management and Budget.
- ▪Kevin Rhodes is serving as a special government employee to continue leading the overhaul of the Federal Acquisition Regulation and the update to cost accounting standards regulations.
Rhodes' remote work from Florida
- ▪Former federal acquisition executives noted that Kevin Rhodes' full-time remote arrangement from Florida creates a double standard given strict federal return-to-work rules.
- ▪Kevin Rhodes stepped away from the Office of Federal Procurement Policy leadership role in part to work from Florida on a full-time basis.
Impact of losing Senate confirmation
- ▪Former federal acquisition officials expressed concern that Kevin Rhodes' transition to a non-Senate-confirmed special government employee role reduces accountability and transparency for his ongoing work.
- ▪Former federal acquisition officials warned that losing a Senate-confirmed leader for the FAR overhaul and cost accounting standards reform could delay progress.
Cost accounting standards reform
- ▪Under the updated cost accounting standards, contracts can rely on Generally Accepted Accounting Principles for measuring and assigning costs for compensated personal leave, capitalization, depreciation, and material acquisition.
- ▪Effective August 7, 2026, the Office of Federal Procurement Policy's July 2026 cost accounting standards final rule eliminated 68 of 72 individual requirements and is projected to reduce vendors using these standards by half.
Background on special government employees
- ▪A special government employee is legally defined as an individual who can serve the federal government for no more than 130 days during any 365-day period.
- ▪The Office of Government Ethics reported that 71 federal agencies utilized 33,470 special government employees during calendar year 2025, with 95% serving on advisory committees.
Debatable claims
- ▪Allowing Rhodes to work remotely full-time creates an unfair double standard for federal employees
- ▪Using special government employees to lead major regulatory overhauls undermines accountability
- ▪The federal government's extensive use of special government employees poses unacceptable ethical risks
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