By the authority of the U.S. President, a new order has been issued to streamline federal procurement processes. The aim is to consolidate procurement under the General Services Administration (GSA) to reduce waste and save taxpayer dollars.
Currently, the federal government spends approximately $490 billion annually on contracts for common goods and services, making it the world's largest buyer. The order highlights that "as a matter of sound management, these standardized procurement functions should be carried out in the most efficient and effective manner possible for the American taxpayer."
The GSA was originally established in 1949 to provide an economical system for core procurement services across federal agencies. The current initiative seeks to return GSA to its foundational role by consolidating domestic federal procurement within this agency. This consolidation is expected to eliminate duplication and enable agencies to focus more on their core missions.
Within 60 days from the issuance of this order, agency heads are required to submit proposals for GSA-conducted procurement of common goods and services. Within 90 days, the Administrator must present a comprehensive plan for government-wide procurement across domestic components.
Furthermore, within 30 days, the Director of OMB will designate the Administrator as the executive agent for all government-wide acquisition contracts concerning information technology. This designation aims at reducing inefficiencies and eliminating contract duplications.
The directive emphasizes that nothing in this order should impair existing legal authorities or affect budgetary or legislative proposals by relevant departments or agencies.
President Donald J. Trump signed this executive order at The White House on March 20, 2025.
