Federal IT Procurement Centralization: GSA’s Role

The White House recently introduced a major change in how the federal government plans to procure goods and services in its ongoing effort to eliminate waste, fraud and abuse. In an Executive Order published on March 20, 2025, it calls for all federal procurement to consolidate under General Services Administration (GSA) management. This essentially centralizes all federal agencies’ purchasing of technology products and services to one agency.
The GSA has long been designated as the federal agency that conducts procurement for most products and services, although other agencies have conducted procurement independently. Referencing the GSA’s substantial ability to save taxpayers’ dollars in goods and services ranging from flat screen TVs, saw blades, to computers and software, this consolidation initiative, the EO stated, could save taxpayers approximately $50 billion per year. Inconsistent pricing across agencies, needless “bureaucratic bloats” and a lack of standardization are cited as major reasons behind the call for federal buying centralization. For instance, the cost of MS Office 365 services licensing varies by more than $200 per license among federal agencies when purchased independently.So, what immediate steps are instructed in the EO?
- Agency heads will be presenting plans to GSA to consolidate domestic procurement functions for goods and services and identify the agency with expertise for such procurement.
- GSA and the Office of Management and Budget (OMB) will collaborate to develop a consolidation plan to procure all goods and services across all federal agencies. The primary focus will be to reduce duplication and eliminate wasteful spending.
- All agencies will indicate the GSA as the executive administrator of all federal acquisition contracts As straightforward as these mandates may seem, the centralization of procurement vehicles and existing contracts will take time to finalize regarding structure and operation.
As straightforward as these mandates may seem, the centralization of procurement vehicles and existing contracts will take time to finalize regarding structure and operation. Nevertheless, the impact will be far-reaching, where contract vehicles like Government-Wide Acquisition Contracts (GWACs) and Indefinite-Delivery, Indefinite-Quantity (IDIQs) may be incorporated into the GSA’s Multiple Award Schedule (MAS). These contracts have been a significant source of acquisition for cloud-related products and services. For instance, in FY24, SEWPV awarded over $1.5 billion on Cloud-related spending in the civilian sector and $253 million in defense. Similarly, cloud spend in IDIQs reached $2.7 billion. By mid-June, the GSA is expected to provide a more comprehensive procurement plan to the OMB. Industry providers of cloud services will want to monitor closely when these changes go live.
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About the Author:
Toan Le is a Senior Market Insights Analyst on the DLT Market Insights team covering DOD and IC domain-centric trends across the Public Sector.