Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement

March 20, 2025

Executive Orders

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Action Summary

Objective: Eliminate waste and streamline procurement spending by consolidating Federal procurement functions under the General Services Administration (GSA), thereby saving taxpayer dollars.
Policy Overview:
- Emphasizes efficient management of the approximately $490 billion spent annually on common goods and services by Federal agencies.
- Returns the GSA to its original purpose of centralized procurement, avoiding uncoordinated, duplicated contracting across agencies.
Key Definitions:
- Administrator: The Administrator of General Services.
- Agency: As defined in section 3502 of title 44, U.S. Code, excluding the Executive Office of the President.
- Agency Head: The highest-ranking official (e.g., Secretary, Administrator, Chairman, or Director).
- Common Goods and Services: Government-wide categories defined by the Category Management Leadership Council via OMB.
- Indefinite Delivery Contract Vehicle: Agreements to order goods/services over time without fixed quantities or delivery schedules.
Procurement Consolidation Measures:
- Within 60 days: Agency heads to submit proposals to the GSA for handling domestic procurement of common goods and services.
- Within 90 days: The GSA Administrator must provide a comprehensive plan to the OMB Director to implement our Government-wide procurement approach.
- Within 30 days: The OMB Director shall designate the GSA Administrator as the executive agent for Government-wide IT acquisition contracts, with a process to defer or decline if necessary for service continuity.
- Within 14 days: The OMB Director will issue a memorandum to agencies concerning the IT contract consolidation provisions.
General Provisions:
- Affirms that no existing legal authorities or budgetary functions of executive departments and OMB are impaired.
- Implementation is contingent on applicable law and available appropriations.
- The order does not create any legally enforceable rights or benefits for any party against the U.S. government.

Risks & Considerations

The consolidation of federal procurement under the General Services Administration (GSA) could lead to more standardized and potentially restrictive procurement processes. This may impact Vanderbilt University’s ability to secure federal contracts for research and services, as the new system might prioritize cost-efficiency over specialized needs.
With the GSA taking a central role in procurement, there may be delays or changes in the procurement process that could affect the timing and availability of federal funding for university projects.
The focus on eliminating waste and duplication could result in reduced opportunities for smaller or niche vendors, which might affect partnerships and collaborations that Vanderbilt University has with such entities.
Vanderbilt University may need to adjust its procurement strategies and processes to align with the new federal procurement guidelines, which could require additional administrative resources and training.

Impacted Programs

Vanderbilt’s Office of Sponsored Programs may need to closely monitor changes in federal procurement policies to ensure compliance and optimize the university’s ability to secure federal contracts.
The Procurement and Disbursement Services department might need to develop new strategies to navigate the consolidated procurement landscape effectively.
Research Centers and Institutes at Vanderbilt that rely on federal contracts for funding may need to reassess their project proposals and timelines to accommodate potential changes in procurement processes.

Financial Impact

The consolidation of procurement could lead to cost savings for the federal government, but it may also result in reduced funding opportunities for institutions like Vanderbilt if the focus shifts towards larger, more generalized contracts.
Vanderbilt University might experience changes in the competitive landscape for federal contracts, necessitating adjustments in how proposals are crafted and submitted.
There may be increased administrative costs associated with adapting to new procurement processes and ensuring compliance with the updated federal guidelines.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential changes in procurement processes.)

Key Actions

Vanderbilt’s Procurement Office should review its current procurement processes to ensure alignment with the new federal guidelines on procurement consolidation. This may involve assessing current contracts and identifying opportunities to leverage the General Services Administration’s procurement services for common goods and services.
The Office of Federal Relations should monitor developments related to the General Services Administration’s role in government-wide procurement, particularly in information technology, to identify potential impacts on Vanderbilt’s federal contracts and partnerships.
Vanderbilt’s IT Department should evaluate its current IT procurement strategies in light of the executive order’s emphasis on rationalizing government-wide IT contracts. This could involve exploring partnerships or collaborations with other institutions to benefit from consolidated procurement opportunities.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Business School to conduct research on the impacts of procurement consolidation on efficiency and cost savings in large organizations. This research could provide valuable insights for both academic and practical applications.
Vanderbilt can capitalize on the focus on eliminating waste and duplication by developing case studies or educational programs that highlight best practices in procurement and supply chain management, potentially attracting students and professionals interested in these fields.

Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with the new federal procurement guidelines.)

Average Relevance Score: 3.6

Timeline for Implementation

Within 60 days of the order: Agency heads must submit proposals for consolidating domestic procurement.
Within 90 days of the order: The Administrator is required to submit a comprehensive plan to the Director of OMB for government-wide procurement of common goods and services.
Within 30 days of the order: The Director of OMB will designate the Administrator as the executive agent for Government-wide acquisition contracts for information technology, with ongoing rationalization of contract vehicles.
Within 14 days of the order: The Director of OMB shall issue a memorandum to agencies concerning the implementation of the information technology procurement directive.

Relevance Score: 5

Impacted Government Organizations

General Services Administration (GSA): Tasked with consolidating domestic procurement of common goods and services for Federal agencies, thereby serving as the central procurement authority.
Office of Management and Budget (OMB): Responsible for coordinating with the GSA by designating it as the executive agent for Government-wide acquisition contracts for information technology and issuing related memoranda to agencies.
Federal Agencies: All executive departments and agencies that currently manage their own procurement functions will be impacted by the mandate to consolidate these operations under the GSA.

Relevance Score: 2 (Three major agency categories are impacted by the order.)

Responsible Officials

Agency Heads – Required to consult with their senior procurement officials and submit proposals to the GSA Administrator regarding domestic procurement functions.
Administrator of General Services – Tasked with submitting a comprehensive plan to the Director of OMB and coordinating Government-wide acquisition contracts for information technology.
Director of the Office of Management and Budget (OMB) – Responsible for designating the Administrator as the executive agent for IT-related government acquisition contracts and issuing guidance to agencies.

Relevance Score: 5 (Directives impact agency heads and senior officials, including high-ranking positions such as the Administrator of GSA and the Director of OMB, which are critical to federal-level procurement reform.)