President Trump signed Executive Order (EO) 14240 on “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement.” EO 14240 directs agency heads to submit proposals to have the General Services Administration (GSA) conduct domestic procurement for “common goods and services”—including construction services—for the agency within 60 days of the March 20, 2025 issuance date of this EO.
EO 14240 states that this action is meant to return the GSA to its original purpose of providing “an economical and efficient system” for the core procurement services for agencies rather than “continuing to have multiple agencies and agency subcomponents separately carry out these same functions in an uncoordinated and less economical fashion.” “Common goods and services” refers to the 10 most common categories of commercial products and services for government-wide procurement, which include: (1) facilities and construction; (2) human capital; (3) industrial products and services; (4) transportation and logistics; (5) professional services; (6) medical; (7) office management; (8) travel; (9) security and protection; and (10) information technology. Next, within 90 days of the March 20, 2025 issuance date of this EO, the GSA Administrator shall submit a comprehensive plan to the Director of the Office and Management and Budget (OMB) for the GSA to procure “common goods and services” across the domestic components of the government, where permitted by law.
Further, EO 14240 provides that within 30 days of the March 20, 2025 issuance date of this EO, the Director of OMB must designate the GSA Administrator as the executive agent for all government-wide acquisition contracts for information technology and the GSA Administrator may defer or decline this responsibility “when necessary to ensure continuity of service or as otherwise appropriate.” Moreover, EO 14240 states that the GSA Administrator shall “rationalize” indefinite delivery contract vehicles (i.e., 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) for information technology across the federal agencies, including as part of identifying and eliminating contract duplication, redundancy, and other inefficiencies. The Director of OMB shall issue a memorandum to agencies implementing these information technology-related responsibilities within 14 days of the March 20, 2025 issuance date of this EO.