By Kiyon Brandford, Director of Consulting, TargetGov
The Trump Administration’s Executive Order 14240 – “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement” – heralds a dramatic shift in federal procurement from the decentralized nature of spending that has defined federal contracting for the last 30 years. On March 20, 2025, the President signed an Executive Order tasking the General Services Administration (GSA) with unifying the acquisition of common goods and services across federal agencies. While the goal is to streamline operations, cut redundancies, and secure taxpayer savings, the order also sends ripples through the contractor community, with small businesses poised to bear the brunt of its implications. Here are some of the key provisions and deadlines laid out in the order:
- Agency Proposals:
Federal agencies are required to submit proposals by May 19, 2025, detailing how the GSA should manage their procurement of shared goods and services. Including how current agency personnel may be reassigned to support GSA with their increased role in contracting. - GSA’s Comprehensive Plan:
By June 18, 2025, the GSA must present a full-scale plan to the Office of Management and Budget (OMB) that explains how procurement functions across agencies will be consolidated. - IT Acquisition Overhaul:
The order designates GSA as the executive agent for all government-wide acquisition contracts (GWACs) in the information technology sphere, bringing IT procurements together under one centralized framework. This could mean that contracts like NASA SEWP or CIO-SP could now be under the auspices of GSA.
For many contractors, centralization creates a more uniform process— with the potential for simplified contract management, standardized procedures, and greater visibility into bidding opportunities for those who currently hold GSA contract vehicles.
However, the new framework also upends long-established procurement methods. Agencies that once exercised independent contracting authority must transition to GSA’s system, potentially causing operational disruptions. Contractors used to direct agency relationships will have to adjust to a centralized model, and the shift toward larger, consolidated contracts might reduce the volume of smaller opportunities that are particularly well suited for small businesses.
Small businesses—including Veteran-Owned Small Businesses (VOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs)—face distinct challenges like:
- Breaking through and Balancing the Scale: In order to see many GSA opportunities, small businesses will need to invest time and effort to determine which GSA vehicle is best suited for them. Although GSA aims to lower compliance hurdles and deploy supportive tools, the pivot toward volume purchasing may favor bigger firms with the capacity to manage large-scale contracts.
- Defining Common Goods and Services: Many small businesses provide value to the federal government by performing niche services or manufacturing niche products that require flexibility and innovation, where small businesses tend to thrive. GSA is set to take overspending for “common goods and services”. It will be important for all companies but specifically small businesses to determine whether or not their products or services fall under “common goods and services”
Executive Order 14240 marks a transformative moment in federal procurement—a bold step toward efficiency and cost reduction. However, its success relies on striking a careful balance that preserves a level playing field for all contractors. For small businesses, ensuring fair access to these consolidated contracts is critical. As the GSA rolls out these sweeping changes, contractors must stay engaged and work proactively with decision-makers to navigate the new landscape and secure their roles in the evolving federal marketplace.
If you have not been keeping up with all of the changes occurring in the federal marketplace, now is the time to begin. Our subject matter experts can provide you with the most up-to-date actionable advice so that your federal procurement efforts stay on track through this tumultuous period of change.
Contact us at TargetGov to learn more about how we can create a systemic, disciplined approach for you and your business development and marketing functions. For more information and assistance to best position your business for success in these changing times. Call 410-579-1346 x 325 or email fast@targetgov.com.