Federal News
White House Consolidates Federal IT Procurement
March 23, 2026
In March 2025, the White House issued an executive order directing federal agencies to centralize procurement of common goods and IT services under the General Services Administration (GSA). This initiative aims to reduce duplication, improve efficiency, and prioritize commercially available solutions across federal acquisitions. As a result, fiscal year 2025 saw a slowdown in new contract awards and increased spending on existing governmentwide acquisition contracts (GWACs) managed by GSA. Additionally, the administration emphasized streamlining the Federal Acquisition Regulation (FAR) to focus on essential provisions and enhancing oversight of federal grantmaking to reduce waste.
- Key agencies involved: GSA leads consolidation efforts with oversight from the White House and Office of Management and Budget (OMB).
- Why this matters: Procurement professionals should anticipate increased reliance on GSA-managed GWACs for IT and common goods, affecting contract sourcing strategies and vendor engagement.
- Actionable insights: Organizations should align offerings with commercially available products and services to meet federal priorities and prepare for streamlined procurement processes under revised FAR guidelines.
- Market impact: The consolidation may reduce fragmented procurements, favoring vendors capable of delivering scalable, cost-effective commercial solutions through GSA vehicles.
An executive order in March 2025 pushed the centralization of procurement of common goods and services, including IT purchases, at GSA.
— White House
Agencies should prioritize procurement of commercially available products and services over non-commercial goods.
— Executive Order on Ensuring Commercial, Cost-Effective Solution in Federal Contracts
The Federal Acquisition Regulation (FAR) is overcomplicated and should be amended to include only essential provisions.
— Executive Order on Restoring Common Sense to Federal Procurement
Agencies
General Services Administration, White House, Office of Management and Budget, Department of Health and Human Services, Office of Personnel Management
Contracts
Locations
Sources
- IT Buying Consolidation Slows Use of Governmentwide Contracts · Bloomberg Government News · Mar 23
- Trump administration executive order tracker 3.20.26 | McDermott+ - JDSupra · JD Supra · Mar 23