President Trump’s latest Executive Order to overhaul federal contracting is turning the General Services Administration (GSA) into a procurement powerhouse—but not everyone’s cheering. Let’s unpack what’s happening and why it matters.
The GSA Will See Massive Upgrade
Trump’s March 20 executive order mandates that nearly all federal agencies hand over their purchasing of “common goods and services” to the GSA, which manages everything from office supplies to cloud software. The goal? Slash redundant contracts, streamline buying, and save taxpayers an estimated $50 billion annually. GSA’s Federal Acquisition Service head, Josh Gruenbaum, told staff the agency’s procurement workload will balloon to $400 billion, quadrupling its current size.
This isn’t just about paper clips and laptops. The order specifically targets IT procurement, requiring the GSA to absorb all government-wide acquisition contracts (GWACs) for tech within 30 days. That means vehicles like NASA’s SEWP and NIH’s CIO-SP3/4—long managed by their home agencies—could soon fall under GSA’s umbrella. While the order allows GSA to “defer or decline” taking over certain contracts for continuity, the writing’s on the wall: centralized control is coming.
Why the Sudden Procurement Power Grab?
The White House argues that fragmented purchasing wastes money. For example, GSA’s existing bulk-buying programs already save ~38% on IT gear. By consolidating, the administration claims agencies can focus on their core missions instead of reinventing the procurement wheel.
But critics warn of turbulence. Contractors accustomed to niche agency contracts might face stiffer competition under GSA’s broader vehicles. Smaller businesses, in particular, could struggle to navigate the shift. Meanwhile, agencies like OMB and OPM are already testing the waters—OPM even laid off its entire procurement team last month to prepare for the transition.
AI Joins the Party (and the Layoffs)
As GSA grows, its workforce isn’t. The agency is aggressively downsizing, axing divisions like Talent Acquisition and rolling out AI tools to automate tasks. At a recent staff meeting, GSA demoed a new chatbot that drafts emails, analyzes contracts, and even suggests procurement strategies. Acting GSA head Stephen Ehikian pitched it as “doing more with less”—a mantra that’s left many feds anxious about job security.
The Big Questions Remains
- Impact on Small Business? Will small businesses get squeezed out with categorization spending and a more centralized spending approach? How will small business certifications and set-aside programs be incorporated?
- Will savings materialize? While the White House touts $50B/year in potential savings, skeptics point to GSA’s mixed track record with IT modernization (looking at you, login.gov).
- What happens to existing contracts? GWACs like SEWP, MAPS, and CIO-SP* aren’t disappearing overnight, but their future under GSA remains fuzzy.
- Can GSA handle the load? Quadrupling procurement volume while cutting staff seems… ambitious. The agency’s plan to onboard talent from other agencies might help, but morale is shaky.
Bottom Line
Trump’s procurement shake-up could either be a masterclass in efficiency or a bureaucratic nightmare. For contractors, adaptability is key: expect fewer agency-specific contracts, more competition on GSA platforms, and a tech-driven procurement process. As one lawyer put it, “This isn’t just a policy change—it’s a tectonic shift in how the government buys stuff”.
Stay tuned. The next 90 days, as agencies submit their transition plans to GSA, will reveal whether this gamble pays off or becomes another case of “move fast and break things.”
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