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Government Procurement Shake-Up: New Executive Order Shifts Contracting Roles to GSA
A recent executive order aims to transition contracting responsibilities for several government agencies to the General Services Administration (GSA), a move that signals a significant change in how federal procurement will be managed. This initiative was discussed with agency personnel during an all-hands meeting.
Former President Trump reportedly enacted this order on Thursday, although the complete text of the executive order has not yet been made public. The White House has also not responded to inquiries regarding the order.
Josh Gruenbaum, the head of GSA’s Federal Acquisition Service, informed employees that the agency plans to incorporate a substantial portion of domestic commercial goods and services into its framework. “While we won’t be taking on the entire $900 billion, our goal is to manage approximately $400 billion, effectively quadrupling our size,” he stated, as per a recording obtained by Nextgov/FCW.
As part of this process, GSA has already begun piloting the onboarding of a few agencies to assess what the procurement integration will entail. This was first highlighted by Federal News Network, which noted that the Office of Management and Budget and the Office of Personnel Management are currently in the onboarding phase. Notably, the Office of Personnel Management recently laid off its entire procurement team.
Gruenbaum expressed confidence in GSA’s operational capabilities, stating that the agency is prepared to streamline and automate procurement processes. He also mentioned that talent from the agencies being integrated will join GSA to enhance its procurement capacity.
In its current role, GSA oversees the schedules program, which provides purchasing options for various goods and services, as well as major governmentwide contract vehicles. The agency also acts as a government landlord, developing comprehensive procurement practices emphasizing category management and best-in-class contracts.
Stephen Ehikian, GSA’s acting leader, highlighted the potential for cost savings through consolidated purchasing, emphasizing the importance of acting as a single buyer for the government.
This restructuring occurs alongside a significant downsizing of the GSA workforce, which has seen entire offices eliminated. Recently, the agency shut down its talent division and the market development and partnerships division within Technology Transformation Services. Additionally, GSA offered incentives for early retirement and voluntary separation, although contracting officers seem to be less affected by these cuts.
For those GSA employees remaining in their positions, a new artificial intelligence (AI) tool was demonstrated during the meeting. GSA announced plans to extend this AI capability to other federal agencies in the future.
Ehikian has prioritized leveraging AI technology to manage workforce size reductions amidst mass layoffs. Staff have been instructed to explore ways in which AI could potentially absorb their roles. The newly introduced AI tool features a chat interface and application programming interface (API), with plans for ongoing improvements based on user feedback. Wired initially reported on this tool’s development earlier this month.
During the meeting, Ehikian described this AI initiative as part of the “build back phase” of modernization, following a prior “slimming down phase” aimed at enhancing efficiency. He underscored the importance of incorporating new tools to maximize efficiency, emphasizing goals such as centralizing data, optimizing IT infrastructure, and investing in shared services.
Furthermore, GSA plans to unveil a significant overhaul of its Federal Risk and Authorization Management Program (FedRAMP) in the coming days, as reported by Nextgov/FCW.
Lastly, GSA is actively working on reducing the government’s real estate footprint. Ehikian shared that the agency has canceled nearly 700 leases, while also acknowledging the possibility of making errors in lease cancellations, which can be adjusted after feedback from stakeholders, including senators.
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