Fact Sheet: President Donald J. Trump Eliminates Waste and Saves Taxpayer Dollars by Consolidating Procurement

March 20, 2025

Fact Sheets

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Action Summary

Consolidation of Procurement: President Trump signed an Executive Order to centralize procurement of common goods and services under the General Services Administration (GSA) to eliminate waste, inefficiencies, and duplication across federal agencies.
Agency Coordination: Agency Heads are directed to submit proposals to GSA to consolidate their domestic procurement functions, with GSA designated as the executive agent for administering government-wide acquisition contracts.
Development of a Comprehensive Plan: GSA and the Office of Management and Budget (OMB) will create a plan to standardize procurement processes government-wide, ensuring best services for the American people and reducing redundant spending.
Cost-Saving Initiatives: Examples highlighted include centralized purchasing for office productivity software, computer systems, and other common goods (e.g., band saw blades, flat screen TVs) resulting in significant cost savings—such as an estimated $100M saved per year from software consolidation and an overall potential 10% spending reduction equating to about $50 billion annually.
Emphasis on Fiscal Responsibility: The Executive Order reinforces efforts to eliminate waste, fraud, and abuse, building on initiatives by the Department of Government Efficiency (DOGE) which has already identified over $100 billion in savings through various measures.

Risks & Considerations

The consolidation of federal procurement could lead to changes in how universities, including Vanderbilt, engage with federal contracts. This may require adjustments in procurement strategies and compliance with new centralized processes.
There is a potential risk of reduced flexibility in purchasing decisions, which could impact the ability of university departments to acquire specific goods and services tailored to their unique needs.
The focus on eliminating waste and inefficiencies might result in stricter oversight and auditing of contracts, necessitating increased administrative efforts to ensure compliance with new procurement standards.
Vanderbilt University may need to evaluate its current procurement practices and consider partnerships with agencies like GSA to leverage potential cost savings and ensure alignment with federal procurement policies.

Impacted Programs

Vanderbilt’s Procurement Office will likely need to adapt to the new centralized procurement processes, potentially requiring training and system updates to align with GSA standards.
Research departments that rely on federal contracts for funding may experience changes in contract management and reporting requirements, impacting project timelines and resource allocation.
The Office of Sponsored Programs might need to adjust its strategies to accommodate new procurement regulations and ensure compliance with federal guidelines.
Vanderbilt’s partnerships with federal agencies for research and development could be affected by the consolidation, necessitating renegotiation of terms and conditions to align with centralized procurement policies.

Financial Impact

The potential cost savings from centralized procurement could result in reduced expenses for goods and services, benefiting Vanderbilt’s budget and financial planning.
However, the transition to a centralized procurement model may incur initial costs related to system upgrades, training, and process adjustments.
Vanderbilt University might experience changes in funding opportunities, particularly if federal contracts prioritize cost efficiency and centralized purchasing.
There may be opportunities for Vanderbilt to collaborate with GSA and other federal agencies to develop innovative procurement solutions and contribute to government efficiency initiatives.

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

Key Actions

Vanderbilt’s Procurement Office should evaluate current procurement practices to identify opportunities for cost savings through centralized purchasing. By aligning with federal procurement strategies, the university can potentially reduce costs on common goods and services.
The Office of Financial Affairs should assess the impact of federal procurement consolidation on university contracts and explore partnerships with GSA to leverage volume-based discounts for technology and office supplies.
Vanderbilt’s IT Department should consider adopting standardized technology procurement practices to ensure cost efficiency and consistency across the university. This could include negotiating bulk purchasing agreements for software and hardware.
The Department of Economics could conduct research on the economic impacts of federal procurement consolidation, providing insights that could inform university policy and strategy.

Opportunities

Vanderbilt can explore collaborations with federal agencies to pilot innovative procurement solutions, positioning itself as a leader in efficient resource management within higher education.
The university can capitalize on the focus on eliminating waste by developing programs or courses that train students in government efficiency and procurement strategies, enhancing its academic offerings and appeal to prospective students.
By engaging with the GSA and other federal entities, Vanderbilt can potentially secure funding or grants aimed at promoting efficient procurement practices, supporting research and development initiatives.

Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with federal procurement strategies and capitalize on potential cost savings.)

Average Relevance Score: 3.2

Timeline for Implementation

N/A – The document details actions and proposals without specifying any deadlines or timelines for their implementation.

Relevance Score: 1

Impacted Government Organizations

General Services Administration (GSA): Central to the Executive Order, GSA is designated as the executive agent for administering government-wide acquisition contracts and consolidating procurement functions.
Office of Management and Budget (OMB): Tasked with developing a comprehensive plan for procurement consolidation, OMB plays a critical role in ensuring the initiative’s success.
Federal Agencies (Government-wide): All agencies are impacted, as they are required to submit proposals to GSA and integrate their procurement functions, making the directive government-wide.
Department of Government Efficiency (DOGE): Mentioned in relation to broader fiscal responsibility efforts, DOGE is involved in identifying cost savings and reducing waste, linking its mission to the consolidation efforts.
NASA, National Institutes of Health (NIH), and the Army: These agencies are cited as examples of entities that have already implemented procurement standardization programs to leverage volume purchasing and achieve significant cost savings.

Relevance Score: 5 (The directive applies government-wide, impacting all federal agencies and several key organizations directly involved in procurement and fiscal efficiency.)

Responsible Officials

Agency Heads – They are directed to submit proposals to the General Services Administration (GSA) for consolidating domestic procurement functions.
General Services Administration (GSA) – Tasked with serving as the central procurement agency and the designated executive agent for administering government-wide acquisition contracts.
Office of Management and Budget (OMB) – Instructed to collaborate with GSA to develop a comprehensive plan for consolidating procurement across the government.
Federal Agencies – Required to designate GSA as the executive agent for their government-wide acquisition contracts.

Relevance Score: 4 (The directives directly impact agency heads and key leadership within GSA and OMB, signifying a high-level implementation mandate.)