GSA Schedules to Expand Fourfold Under Executive Order 14234: Major Shift in Federal Procurement
On March 20th, 2025, President Trump signed Executive Order 14234, titled “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement,” signaling a massive shift in federal purchasing. This executive order mandates that all routine commercial goods and services be centralized under the General Services Administration (GSA). Federal agencies now have 60 days to transition their acquisitions to the GSA, or they must submit a comprehensive plan outlining their path to GSA-based procurement. As part of this overhaul, agencies will lose the ability to use previous contracts for these purchases.
GSA Schedule System Set to Grow Four Times Larger
This move is poised to dramatically expand the GSA Schedule System. Josh Gruenbaum, head of GSA’s Federal Acquisition Services, revealed that the GSA aims to absorb approximately $400 billion in domestic commercial goods and services, quadrupling its current size. According to Gruenbaum, “Over the coming months, we are going to ingest all domestic, commercial goods and services inside the GSA. We’re not going to do all $900 billion, but we will do about $400 billion, so we’re going to quadruple our size.”
A Rush to Secure GSA Schedules, Especially in IT
The order also signals a significant shift in IT procurement. The GSA is set to take on a larger portion of federal IT contracts, including existing Government-Wide Acquisition Contracts (GWACs). While it’s unclear whether the GSA will continue to use current contracts or develop new ones, it’s expected that firms with GSA Schedules will have a distinct advantage in securing future opportunities. As the GSA’s IT footprint expands, a rush of IT companies will likely scramble to get on a GSA Schedule, a process that typically takes 6-7 months.
Also read our article: How To Sell Software To The Government: A Comprehensive Guide
Centralization: The Future of IT Spending?
The future of federal IT spending looks likely to be poised for further centralization under the GSA. As the GSA consolidates procurement, firms that want to stay competitive in securing federal contracts will likely need to have a GSA Schedule, or at least a clear plan to obtain one. This shift will impact everything from contracting vehicles to the competitive landscape in federal IT.
Our Perspective
With over 20 years of experience in federal contracting, especially with GSA Schedules, we’ve never seen such a sweeping transformation with such significant implications. This change marks a critical moment for companies with existing federal contracts—particularly in IT and services. It’s imperative for firms to act quickly to navigate the centralization of federal IT contracts and ensure they remain competitive in this new environment.
