On March 20, 2025, President Trump signed Executive Order 14234, titled “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement," signaling a monumental shift in federal purchasing practices. This executive order requires that all routine commercial goods and services be consolidated under the General Services Administration (GSA). Federal agencies now have 60 days to transition their acquisitions to the GSA or submit a comprehensive plan outlining their strategy for GSA-based procurement. As part of this significant overhaul, agencies will lose the ability to use previous contracts for these purchases.

GSA Schedule System Set to Quadruple

This initiative is set to dramatically expand the GSA Schedule System. Josh Gruenbaum, Head of GSA’s Federal Acquisition Services, announced that the GSA aims to encompass approximately $400 Billion in domestic commercial goods and services, effectively quadrupling its current size. “Over the coming months, we are going to absorb all domestic commercial goods and services into the GSA,” Gruenbaum stated. “While we’re not targeting the entire $900 Billion market, we will bring on about $400 Billion—this will definitely quadruple our size.”

A Rush to Secure GSA Schedules, Particularly in IT

The executive order also indicates a substantial shift in IT procurement. The GSA is poised to take on a larger share of federal IT contracts, including existing Government-Wide Acquisition Contracts (GWACs). While the future use of existing contracts remains uncertain, it is anticipated that organizations with GSA Schedules will have a distinct advantage in securing upcoming opportunities. As the GSA's IT footprint expands, a surge of IT companies is likely to compete to secure a place on the GSA Schedule—a process that typically takes 6 to 7 months.

Centralization: The Future of IT Spending?

The outlook for federal IT spending suggests further centralization under the GSA. As procurement consolidates, firms eager to remain competitive for federal contracts will need to either obtain a GSA Schedule or devise a clear plan to do so. This shift will influence everything from contracting vehicles to the competitive landscape within federal IT.

My Perspective

With over 20 years of experience in federal contracting—particularly with GSA Schedules—we have never witnessed such a sweeping transformation with such far-reaching implications. This change represents a critical juncture for companies holding existing federal contracts, especially in IT Services. It is imperative for organizations to act swiftly to navigate the centralization of federal IT contracts and maintain their competitiveness in this evolving marketplace. It is paramount to know its' impact on you and your business. If you operate in the Federal Marketplace, and don’t currently have a GSA Schedule, I highly recommend you contact the industry experts at Advance GSA. They do not charge for an initial consultation.