Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement

Executive Orders

TLDR

This executive order centralizes federal procurement of common goods and services under the GSA, aiming to eliminate waste in the government’s $490 billion annual contract spending. It establishes a rapid implementation timeline (14-90 days), designates GSA as the executive agent for government-wide IT acquisition contracts, and requires elimination of contract duplication. While potentially leveraging the government’s buying power for better deals, concerns include timeline disruption, reduced agency flexibility, and concentration of contracting authority.

This executive order aims to centralize federal procurement of common goods and services under the General Services Administration (GSA), with the stated goal of eliminating waste and duplication in government purchasing.

It notes that the federal government spends approximately $490 billion per year on contracts for common goods and services, making it the world’s largest buyer. It argues that the GSA, established in 1949 to provide “an economical and efficient system” for procurement, should return to its original purpose rather than having multiple agencies perform these functions separately.

Implementation Timeline:

  • Within 60 days: Agency heads must submit proposals to the GSA Administrator for the GSA to conduct domestic procurement of common goods and services for their agencies
  • Within 90 days: The GSA Administrator must submit a comprehensive plan to the OMB Director for procuring common goods and services across domestic government components
  • Within 30 days: The OMB Director must designate the GSA Administrator as executive agent for all government-wide IT acquisition contracts
  • Within 14 days: The OMB Director must issue a memorandum to agencies implementing the IT acquisition provisions

The order specifically targets information technology procurement, requiring the GSA Administrator to “rationalize Government-wide indefinite delivery contract vehicles for information technology” and eliminate contract duplication and inefficiencies.

This executive order represents a significant centralization of federal procurement power within the GSA. While the stated goal is efficiency and cost savings, this consolidation could have several implications:

  1. Centralized procurement could leverage the government’s massive buying power to negotiate better deals and eliminate redundant contracting efforts across agencies.

  2. Potential Concerns:

    • The rapid implementation timeline may create disruption in existing procurement processes
    • Agencies with specialized procurement needs may lose flexibility
    • The consolidation creates a concentration of contracting authority within the GSA

The order includes standard language clarifying that it doesn’t impair existing legal authorities and is subject to available appropriations. It also specifies that it doesn’t create any enforceable rights against the government.

This represents a significant restructuring of how the federal government purchases goods and services, potentially affecting thousands of contracts and billions in spending.

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

Section 1.

Policy.

The Federal Government spends approximately $490 billion per year on Federal contracts for common goods and services — the types of goods and services purchased by nearly every executive department and agency (agencies) — making it the largest buyer of goods and services in the world. 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 General Services Administration was established in 1949 through the Federal Property and Administrative Services Act, 40U.S.C. 101_et seq._, to provide “an economical and efficient system” for the core procurement services for agencies (40 U.S.C. 101). It is time to return the General Services Administration to its original purpose, rather than continuing to have multiple agencies and agency subcomponents separately carry out these same functions in an uncoordinated and less economical fashion.

Consolidating domestic Federal procurement in the General Services Administration — the agency designed to conduct procurement — will eliminate waste and duplication, while enabling agencies to focus on their core mission of delivering the best possible services for the American people.

Sec. 2.

Definitions.

For the purposes of this order:

(a) “Administrator” means the Administrator of General Services.

(b) “Agency” has the meaning given to it in section 3502 of title 44, United States Code, except that such term does not include the Executive Office of the President or any components thereof.

© “Agency head” means the highest-ranking official of anagency, such as the Secretary, Administrator, Chairman, or Director.

(d) “Common goods and services” means the common Government-wide categories defined by the Category Management Leadership Council led by the Office of Management and Budget(OMB).

(e) “Indefinite delivery contract vehicle” means an agreement through which an agency can order goods and services over a defined period without setting forth quantities or a delivery schedule up front.

Sec. 3.

Procurement Consolidation.

(a) Within 60 days ofthe date of this order, agency heads shall, in consultation with the agency’s senior procurement officials, submit to the Administrator proposals, pursuant to 40 U.S.C. 101, 40 U.S.C. 501, or other relevant authorities, to have the General Services Administration conduct domestic procurement with respect to common goods and services for the agency, where permitted bylaw.

(b) Within 90 days of the date of this order, the Administrator shall submit a comprehensive plan to the Directorof OMB for the General Services Administration to procure common goods and services across the domestic components of the Government, where permitted by law.

© Within 30 days of the date of this order, pursuant tothe authority in 40 U.S.C. 11302(e), the Director of OMB shall designate the Administrator as the executive agent for allGovernment-wide acquisition contracts for information technology. The Administrator, in consultation with the Director of OMB, shall defer or decline the executive agent designation for Government-wide acquisition contracts for information technology when necessary to ensure continuity ofservice or as otherwise appropriate. The Administrator shallfurther, on an ongoing basis and consistent with applicable law, rationalize Government-wide indefinite delivery contract vehicles for information technology for agencies acrossthe Government, including as part of identifying and eliminating contract duplication, redundancy, and other inefficiencies.

(d) Within 14 days of the date of this order, the Director of OMB shall issue a memorandum to agencies implementing subsection © of this section.

Sec. 4.

General Provisions.

(a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

© This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

DONALD J. TRUMP THE WHITE HOUSE,
March 20, 2025.