In a decisive move aimed at improving government efficiency, President Donald Trump unveiled an executive order on March 20, 2025, focused on consolidating federal procurement processes. This policy addresses the staggering $490 billion spent annually by the federal government on contracts for common goods and services, making it the largest buyer of goods and services globally.
The new order seeks to return the General Services Administration (GSA) to its foundational goal of providing an economical and efficient system for core procurement services across various federal agencies. Established in 1949, the GSA was intended to streamline procurement operations to eliminate waste and redundancy. The President’s latest initiative emphasizes the need to re-evaluate and coordinate purchasing activities across multiple agencies to ensure maximum efficiency and cost-effectiveness for American taxpayers.
Under this order, federal agencies must submit proposals to have the GSA handle their procurement of common goods and services, fostering a unified approach to federal purchasing. This consolidation is projected to eliminate unnecessary overlap in spending and streamline operations, allowing agencies to concentrate on their core missions of delivering quality service to U.S. citizens.
Key provisions of the order include directives for agency heads to collaborate with senior procurement officials and submit procurement proposals to the Administrator of the GSA within specific time frames. Furthermore, the order designates the Administrator as the executive agent for all government-wide acquisition contracts related to information technology, thereby enhancing oversight and efficiency in this critical area.
The full implementation of these measures is designed to occur in phases, with the agency heads given 60 days to submit their proposals and the GSA expected to deliver a comprehensive plan to the Office of Management and Budget within 90 days. In a structured approach, the GSA will also rationalize government-wide indefinite delivery contract vehicles to eliminate inefficiencies in IT procurement, ultimately aimed at saving taxpayer dollars.
This executive order is part of Trump’s ongoing efforts to promote fiscal responsibility within the federal government and to enhance transparency in government expenditures. By consolidating procurement functions, the administration aims to not only cut costs but also improve the delivery of essential services to the American people, embodying a principle of effective governance that resonates across party lines.