Implementing the President’s “Department of Government Efficiency” Cost Efficiency Initiative

February 26, 2025

Presidential Actions

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Action Summary

Purpose: Commence a transformation of Federal spending on contracts, grants, and loans to ensure spending transparency and accountability of Government employees.
Definitions:
- Administrator: Refers to the head of the United States DOGE Service as per Executive Order 14158.
- Agency & Agency Head: “Agency” excludes the Executive Office of the President; “Agency Head” is the top official (e.g., Secretary, Administrator) responsible for carrying out this order.
- Covered Contracts and Grants: Discretionary spending via contracts, grants, loans (excluding direct assistance, defense, law enforcement, critical/emergency spending, etc.).
- DOGE Team Lead: The designated head of the DOGE Team within each agency.
Cutting Costs and Enhancing Efficiency:
- Payment Justification System: Agencies must establish a centralized technological system to record every payment and its brief written justification, with a pause mechanism for missing justifications and public posting where legally allowed.
- Review of Contracts and Grants: Agency Heads must review and, where appropriate, terminate, modify, or renegotiate existing covered contracts and grants—focusing particularly on funding to educational institutions and foreign entities—with a 30-day deadline.
- Contracting Process Review: A comprehensive review of contracting policies, procedures, and personnel is required, with a temporary freeze on new contracting officer warrants unless specifically warranted.
- New Contracting Guidance: Prior to entering new contracts, guidance must be issued in consultation with DOGE Team Leads, and monthly reports on contracting activities are to be provided to the Administrator.
- Non-Essential Travel Justification: Develop a system to centrally record and justify federally funded travel for conferences and non-essential purposes, with public posting of justifications where permitted.
- Credit Card Freeze: All agency employee credit cards are to be frozen for 30 days, with exceptions for disaster relief, natural disaster response, or other critical services as determined by the Agency Head.
- Real Property Disposition:
  - Within 7 days: Update the Federal Real Property Profile Management System.
  - Within 30 days: Identify termination rights under current leases.
  - Within 60 days: The Administrator of General Services must submit a disposition plan for unneeded Government-owned real property.
General Exclusions: Excludes law enforcement operations, specific agencies such as U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement, the Uniformed Services, any agency-designated exceptions, and classified information/systems.
General Provisions:
- This order does not impair existing legal authority or affect the OMB’s functions related to budgetary and administrative proposals.
- Implementation is subject to applicable law, availability of appropriations, and does not create enforceable rights against the United States.

Risks & Considerations

The Executive Order’s emphasis on transparency and accountability in federal spending could lead to increased scrutiny of grants and contracts involving educational institutions, including Vanderbilt University. This may result in more rigorous reporting requirements and potential audits.
The focus on reducing federal spending and reallocating funds could impact the availability of federal grants and contracts for research and development projects at Vanderbilt. This may necessitate adjustments in funding strategies and priorities.
The requirement for public posting of payment justifications could expose sensitive financial information, potentially affecting competitive positioning and confidentiality agreements with partners.
The freeze on credit card usage and restrictions on non-essential travel could affect faculty and staff’s ability to attend conferences and engage in collaborative research activities, impacting professional development and networking opportunities.
The review and potential termination of existing contracts and grants could disrupt ongoing projects and partnerships, requiring contingency planning and risk management strategies.

Impacted Programs

Office of Sponsored Programs at Vanderbilt may need to enhance its compliance and reporting mechanisms to align with the new federal requirements and ensure continued eligibility for federal funding.
Vanderbilt’s Research Centers could face challenges in securing federal grants, necessitating diversification of funding sources and increased collaboration with private sector partners.
The Finance and Administration Department may need to implement new systems and processes to manage the increased documentation and justification requirements for federal spending.
International Programs might be affected by the review of funds disbursed to foreign entities, potentially impacting global research collaborations and partnerships.

Financial Impact

The potential reduction in federal spending on grants and contracts could lead to decreased funding for research and development initiatives at Vanderbilt, affecting the university’s financial planning and budgeting.
Increased administrative costs may arise from the need to comply with new reporting and justification requirements, impacting the overall cost structure of federally funded projects.
Opportunities for cost savings may be identified through the review of existing contracts and grants, allowing for reallocation of resources to more strategic initiatives.
The emphasis on efficiency and accountability could enhance Vanderbilt’s reputation as a responsible steward of federal funds, potentially attracting new funding opportunities and partnerships.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

Vanderbilt’s Office of Sponsored Programs should prepare for potential reviews of existing federal grants and contracts. This includes ensuring that all justifications for payments are well-documented and align with the new transparency requirements to avoid disruptions in funding.
The Finance Department should assess the impact of the credit card freeze on university operations, particularly in areas that rely on federal funding. Developing contingency plans for essential purchases during the freeze period will be crucial.
Vanderbilt’s Real Estate Office should monitor any changes in federal real property management that could affect university leases or property interests. Engaging with the General Services Administration may provide insights into potential opportunities or risks.
The Travel Office should review and potentially revise policies regarding federally funded travel to ensure compliance with new justification requirements. This may involve implementing a system to track and document travel approvals and justifications.

Opportunities

The executive order’s emphasis on cost efficiency and transparency presents an opportunity for Vanderbilt’s Research Centers to showcase their expertise in these areas. By aligning research initiatives with federal priorities, the university can enhance its competitiveness for future funding.
Vanderbilt’s Policy Analysis and Research Team can engage in evaluating the impacts of the executive order on higher education funding. This analysis can inform strategic decisions and position the university as a thought leader in policy discussions.

Relevance Score: 4 (The order necessitates major process changes in grant management and financial operations to comply with new federal requirements.)

Average Relevance Score: 4.4

Timeline for Implementation

Real Property Report: Within 7 days of the date of this order.
Review of Covered Contracts and Grants: Completed within 30 days of the order.
Contract and Grant Process Review: Completed within 30 days of the order.
Credit Card Freeze: In effect for 30 days from the date of this order.
Real Property Leases: Actions to be taken within 30 days of the order.
Real Property Disposition: A plan must be submitted within 60 days of the order.

The shortest timeline is 7 days, making the directives urgent and requiring prompt action.

Relevance Score: 5

Impacted Government Organizations

Federal Agencies (Non-Exempt): All agencies as defined by 44 U.S.C. section 3502 – excluding law enforcement, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, and the Uniformed Services – are required to implement new systems for transparent recording and review of contracts, grants, and federally funded travel.
United States DOGE Service: The Administrator of the DOGE Service and corresponding DOGE Team Leads are tasked with assisting agencies in establishing and maintaining the prescribed technological systems and reporting processes.
General Services Administration (GSA): The Administrator of General Services (or his designee) is responsible for coordinating the real property reporting and disposition process, ensuring the accuracy of the Federal Real Property Profile Management System.
Office of Management and Budget (OMB): The Director of OMB is involved through review and coordination, including receiving disposition plans for government-owned real property and maintaining oversight of budgetary and administrative proposals related to these reforms.

Relevance Score: 5 (The directive applies broadly across nearly all Federal agencies, impacting a government-wide effort to enhance efficiency and accountability.)

Responsible Officials

Agency Heads – Each Agency Head is mandated to establish technological systems for tracking payments and non‐essential travel, review and modify covered contracts and grants, and manage real property disposition processes. They also retain the authority to exempt components of these directives in consultation with other officials.
DOGE Team Leads – Assigned to assist Agency Heads by providing expertise in building the required systems and furnishing monthly informational reports on contracting activities and non-essential travel justifications.
Administrator of the United States DOGE Service – Receives monthly reports from each agency’s DOGE Team Lead regarding contracting activities, ensuring the implementation of reporting protocols.
Administrator of General Services – Tasked with receiving immediate real property reports from Agency Heads and, in consultation with them, assisting with the identification of termination rights under existing leases.
Director of the Office of Management and Budget (OMB) – Designated to receive a disposition plan for Government-owned real property submitted by the Administrator of General Services.

Relevance Score: 4 (Directives primarily affect Agency Heads, who are the highest-ranking officials in their agencies, with significant implementation responsibilities.)