Executive Order Consolidates Federal Procurement Under GSA and Its Implications for Contractors

On March 20, 2025, the Trump Administration issued an executive order titled “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement.” This order designates the General Services Administration (GSA) as the primary agency responsible for domestic federal procurement of common goods and services. This move aims to streamline purchasing processes, reduce redundancy, and improve cost efficiency.

What This Means for Federal Contractors

The executive order has significant implications for both existing and prospective federal contractors. Key changes include:

• Increased GSA Oversight: Federal agencies will rely more on GSA-managed contracts, including GSA Schedules and Government-Wide Acquisition Contracts (GWACs). Businesses must familiarize themselves with these procurement vehicles.



• Potential Shift in Contracting Opportunities: Agencies that previously handled their own procurement may now consolidate under GSA, reducing the number of standalone solicitations.



• Heightened Compliance Requirements: GSA contracts have strict eligibility and compliance rules. Businesses must ensure their registrations and certifications (such as those on SAM.gov) are up to date.



• Opportunities for Small Businesses: While consolidation may make it harder to win direct agency contracts, small business set-aside programs within GSA, such as 8(a) and HUBZone, will remain critical.

Strategies to Adapt to the Centralized Procurement Model

To remain competitive under this new system, federal contractors should consider the following strategies:

• Register for GSA Schedules: If your business is not yet on a GSA Schedule, consider applying to gain access to upcoming procurement opportunities.



• Build Relationships with GSA Officials: Engage with GSA contracting officers and attend industry days to understand upcoming procurement needs.



• Enhance Compliance Readiness: Ensure your company adheres to cybersecurity requirements (CMMC), pricing regulations, and reporting standards.



• Monitor Procurement Data: Use resources like USAspending.gov to track contract trends and anticipate future GSA opportunities.



• Leverage Teaming Agreements & Joint Ventures: Partner with established GSA contractors to increase your chances of winning contracts.

This executive order marks a major shift in federal procurement. While it presents new challenges, businesses that proactively adjust their strategies can still thrive in the federal marketplace. By understanding the implications, refining their approach, and leveraging GSA opportunities, contractors can position themselves for success.

Stay informed, stay compliant, and explore how your business can benefit from this new procurement landscape.