- US Public Agencies must buy it centrally under new order
- 6,000 contracts are already terminated or made cheaper
- The goal is to reduce waste and save taxpayers’ dollars
US President Donald Trump has signed an executive order to centralize the federal IT procurement under General Services Administration (GSA), a 76-year-old agency that oversees procurement.
The move means that Office of Management and Budget (OMB) must adopt state acquisition contracts through GSA.
The order, signed on March 20, 2025, goes by the name “Removal of Waste and Rescue of the Dollars of Taxpayers by consolidating Procurement.”
US Government to centralize the expenses
The White House explained that the US government is spending “about $ 490 billion a year on federal contracts for common goods and services” and called for the most effective and effective purchase of these goods and services with the US taxpayer’s dollars.
In addition to being smarter with the money it spends, the Trump administration also hopes that the move will help utter waste and duplication.
In the two months that led to the signing of the executive order, the US government had already terminated or financed over 6,000 contracts.
The separately published fact sheet continues to explain that agencies have independently purchased licenses for productivity software such as Microsoft 365, leading to pricing and other challenges.
By bringing all this under the waking eye of General Services Administration, Trump hopes to save $ 100 million a year.
A $ 150 million savings in FY 24 was also noticed in terms of centralization of identity protection services to prevent and respond to data violations.
Moving on to hardware is spent an estimated $ 1 billion annually buying computers for staff, yet only $ 6 billion has been reviewed GSA for a whole decade and highlights the extent of potential savings. NASA, NIH, Army and GSA have each setup of volume purchase agreements with GSA, but other agencies have not done so.
Everything in the Department of Government Efficiency (DOGE) has identified “more than $ 100 billion in estimated savings” across different ID areas, including hardware, software and regulatory savings.
