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The Shifting Sands of Federal Contracting: GSA Takes Center Stage
The landscape of federal government contracting is undergoing a significant transformation. A recent move by the Trump administration is poised to centralize the procurement of common goods and services within the U.S. General Services Administration (GSA). This decisive step, outlined in the Executive Order “Eliminating Waste and Taxpayer Dollars by Consolidating Procurement” issued on March 20, 2025, will dramatically reduce the number of contracts awarded by individual agencies.
What does this mean? In essence, the GSA will become the primary entity responsible for federal procurement of domestic “common goods and services”. This consolidation will lead to the GSA overseeing roughly four times the number of procurements annually, managing federal contracts totaling over $490 billion per year. The GSA is already piloting this mandate, taking on procurements for the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM), with more agencies expected to follow suit.
The Executive Order defines “common goods and services” by referencing 10 procurement categories established by the Category Management Leadership Council (CMLC). These categories offer a broad scope, indicating that the GSA will assume responsibility for nearly all acquisitions across federal agencies within these areas:
- Facilities and Construction: Including construction-related and facility-related materials and services, as well as facilities purchases and leases.
- Professional Services: Encompassing business administrative, financial, legal, management and advisory, marketing, public relations, research and development, social, and technical engineering services.
- Information Technology: This covers software, hardware, consulting, security, outsourcing, and telecommunications.
- Medical: Including drugs, pharmaceutical products, healthcare services, and medical equipment and supplies.
- Transportation and Logistics: Encompassing fuels, logistics support, non-combat vehicles, package delivery, transportation equipment, and transportation of things.
- Industrial Products and Services: include fire, rescue, and safety equipment; hardware and tools; installation, maintenance, and repair materials; machinery and components; oils, lubricants, and waxes; and test and measurement supplies.
- Travel: Including employee relocation, lodging, and passenger travel.
- Security and Protection: Covering ammunition, protective apparel and equipment, security animals, security services, security systems, and weapons.
- Human Capital: Including compensation, benefits, employee relations, human capital strategy, policy, operations planning, talent acquisition, and talent development.
- Office Management: Including furniture and office management products and services.
The implementation timeline is relatively swift. By April 19, 2025, the GSA’s Acting Administrator will be designated as the executive agent for Government Wide Acquisition Contracts (GWACs) for IT, and by May 19, 2025, all federal agency heads must submit proposals for the GSA to handle their affected procurements. A comprehensive consolidation plan is due to the OMB by June 18, 2025. The GSA has established a website and the Acting Administrator is blogging about these efforts.
What does this mean for federal contractors? This shift has the potential for a significant impact. While selling to the federal government through the GSA has been an option, the consolidation means contractors may face longer procurement timelines due to an increased workload for the remaining procurement professionals. Existing contracts might be transferred to the GSA for administration, requiring contractors to build new relationships. The consolidation may also lead to fewer overall contracts but with higher values, potentially increasing competition for small businesses. Contractors should anticipate contract performance disruptions and ensure they obtain clear written direction from their contracting officers when such disruptions occur. Contractors must remain aware of this evolving landscape and prepare for potential changes in compliance obligations and new GSA-specific procurement regulations.
In conclusion, expanding the GSA’s role in federal procurement represents a fundamental change in how the government acquires common goods and services. Federal contractors need to stay informed and adapt to these evolving procedures to remain competitive in this new environment.
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