Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement
This executive order directs the consolidation of domestic federal procurement of common goods and services under the General Services Administration (GSA).
The order cites the GSA's original mandate for efficient procurement and the significant annual spending on federal contracts as justification.
The order sets deadlines for agencies to submit proposals to the GSA, for the GSA to create a comprehensive plan, and for the OMB to designate the GSA Administrator as the executive agent for government-wide IT acquisition contracts.
The aim is to eliminate waste and duplication, improving efficiency and saving taxpayer dollars.
Arguments For
Intended benefits: Consolidating procurement under the GSA aims to eliminate waste and duplication, saving taxpayer money. This is supported by the assertion that the Federal Government is the world's largest buyer of goods and services, suggesting significant potential for savings through efficient management.
Evidence cited: The order references the Federal Property and Administrative Services Act (40 U.S.C. 101 et seq.), establishing the GSA in 1949 with a mandate for economical and efficient procurement, suggesting a return to this original purpose. The approximate annual spending of $490 billion on federal contracts further emphasizes the scale of the potential savings.
Implementation methods: The order mandates agency heads to submit proposals to the GSA for procurement consolidation within 60 days. The GSA Administrator will then create a comprehensive plan within 90 days. The OMB Director will also designate the GSA Administrator as executive agent for government-wide IT acquisition contracts.
Legal/historical basis: The order cites the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 101 et seq.) as a legal basis for establishing the GSA and its procurement role. It leverages the historical context of the GSA’s original purpose to justify consolidation.
Arguments Against
Potential impacts: There could be disruptions to agency operations during the transition of procurement functions to the GSA. Agencies could possibly experience delays in obtaining necessary goods and services. Some agencies may lose expertise in specialized procurement areas.
Implementation challenges: Consolidating procurement processes from numerous agencies may face logistical difficulties and require significant coordination between agencies and the GSA. Legal complexities might arise from existing contracts and regulations. Resistance from agencies accustomed to their own in-house procurement systems could be a challenge.
Alternative approaches: Improving efficiency could be explored through other methods such as enhanced training programs for existing procurement staffs at individual agencies, updates to technology, or other less drastic changes to procurement processes.
Unintended effects: Increased centralisation of procurement can lead to reduced responsiveness to specific agency needs, potentially impacting efficiency or the ability to secure specialized goods and services.
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
This is a standard opening statement for Presidential Executive Orders, asserting the President's constitutional authority to issue the order.
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, 40 U.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.
This section establishes the policy goal: consolidating federal procurement under the GSA to increase efficiency and save taxpayer money.
It argues that the current system of multiple agencies handling procurement separately is wasteful and inefficient, citing the GSA's original purpose and the vast amount of money involved.
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. (c) “Agency head” means the highest-ranking official of an agency, 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.
This section defines key terms used throughout the order, including ‘Administrator,’ ‘Agency,’ ‘Agency head,’ ‘Common goods and services,’ and ‘Indefinite delivery contract vehicle,’ for clarity and consistent understanding.
Sec. 3. Procurement Consolidation. (a) Within 60 days of the 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 by law.
(b) Within 90 days of the date of this order, the Administrator shall submit a comprehensive plan to the Director of OMB for the General Services Administration to procure common goods and services across the domestic components of the Government, where permitted by law.
(c) Within 30 days of the date of this order, pursuant to the authority in 40 U.S.C. 11302(e), the Director of OMB shall designate the Administrator as the executive agent for all Government-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 of service or as otherwise appropriate. The Administrator shall further, on an ongoing basis and consistent with applicable law, rationalize Government-wide indefinite delivery contract vehicles for information technology for agencies across the 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 (c) of this section.
This section details the steps for implementing the procurement consolidation.
Agency heads must propose shifting procurement to the GSA within 60 days.
The GSA Administrator creates a comprehensive plan within 90 days.
The OMB will name the GSA head as the executive agent for purchasing government IT contracts within 30 days.
The OMB Director will inform agencies of this change within 14 days.
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. (c) 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.
This section includes general provisions.
It clarifies that the order does not reduce the authority of other executive agencies or conflict with the OMB's budgetary functions.
The implementation is subject to existing laws and available funds.
Finally, it states that this order creates no legal rights or benefits for any party.
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