Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement

2025-03-25Executive Order 14240
Signed by: Donald Trump
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Headline: Directs Federal Agencies to Centralize Purchasing with General Services Administration

What it does: Agencies must submit proposals to transfer common purchasing to the General Services Administration, and the Office of Management and Budget must designate that Administration to centralize information technology contracting.

Real World Impact:
  • Agencies must submit proposals to transfer common purchasing within 60 days.
  • Budget office will name General Services Administration as IT contract lead within 30 days.
  • Aims to eliminate duplicate contracts and centralize buying to save taxpayer dollars.
Topics: government procurement, federal spending, information technology contracts, government efficiency

Summary

This order returns buying of common goods and services to the General Services Administration and requires agencies to propose transferring their purchasing to that office. It also directs the General Services Administration and the Office of Management and Budget to create a government-wide plan and to centralize information technology contracts.

The order affects every federal department that buys common goods and services and aims to cut waste, duplication, and contract redundancy from about $490 billion in annual federal contracting.

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