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Executive order · Thursday 20 March 2025

Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement

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  • Presidential Authority: The President issues the executive order based on constitutional and legal authority.
  • Federal Procurement Spending: The Federal Government spends about $490 billion annually on contracts for common goods and services, making it the world's largest buyer.
  • General Services Administration (GSA): Established in 1949 to provide an efficient procurement system; the order aims to return GSA to its original purpose.
  • Consolidation of Procurement: The order proposes consolidating domestic Federal procurement under GSA to eliminate waste and duplication, enhancing service delivery to the public.

Definitions:

  • Administrator: Refers to the Administrator of General Services.
  • Agency: Defined as per section 3502 of title 44, U.S. Code, excluding the Executive Office of the President.
  • Agency Head: The highest-ranking official of an agency.
  • Common Goods and Services: Defined categories according to the Category Management Leadership Council led by OMB.
  • Indefinite Delivery Contract Vehicle: Agreements for ordering goods/services without upfront quantities or delivery schedules.

Action Steps:

  • Within 60 days: Agency heads must submit proposals for GSA to manage procurement of common goods and services.
  • Within 90 days: GSA Administrator must provide a comprehensive plan to OMB for procurement across the government.
  • Within 30 days: OMB Director will designate the GSA Administrator as the executive agent for IT acquisition contracts while ensuring continuity of service.
  • Within 14 days: OMB Director will issue a memorandum to agencies related to the executive agent designation.

Legal Considerations:

  • The order does not affect existing authorities of agencies or the functions of the OMB Director.
  • Implementation is subject to applicable law and available appropriations.
  • The order does not create enforceable rights for any parties.