GSA’s Procurement Overhaul Set to Reshape Federal Procurement

By Mitanshi Gondaliya, Joe Kirkwood

On March 20, 2025, President Trump signed Executive Order 14240, Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement, which directs the General Services Administration (GSA) to assume primary responsibility for all domestic civilian procurement of “common goods and services” – notably including professional services and IT. 

Federal Acquisition Service Commissioner Josh Gruenbaum has since informed GSA staff that the agency will absorb roughly $400 billion in annual obligations, about four times its prior workload. Under the directive, nearly all agency-specific Government-Wide Acquisition Contracts (GWACs), must be phased out or obtain a waiver to continue operating.

The changes are designed to streamline procurement through phased rollouts of commodity and IT hardware purchasing in FY 2025–26, followed by professional and technical services in FY 2027, with full implementation by FY 2028. A “plan” for the overhaul was due to be submitted by GSA to the Office of Management and Budget (OMB) on June 18, but it has not yet been posted for public comment. Our clients should monitor Acquisition.gov for both the plan itself and the Federal Register notice opening the notice-and-comment period.

The EO is already making waves and causing real world activity. This article distills the comprehensive plan’s central features as reported across the market and offers a practical analysis for contractors looking to read the tea leaves for a preview of how they will have to navigate this newly centralized procurement environment.

Key Market Disruptions in the First 90 Days of EO 14240 1.    

1. 1. GWAC Rationalization
      NASA and National Institutes of Health (NIH)’s contracting vehicles Solutions for Enterprise-Wide Procurement VI (SEWP VI) and Chief Information Officer - Solutions and Partners III/IV (CIO-SP III/IV) are under GSA’s rationalization review.[i]
   2. AI & RPA Tools Enter Live Pilots
      GSA’s “CODY” robotic-process-automation (RPA) pilot has already generated two full statements of work for OMB and Office of Personnel Management (OPM).[ii]
   3. Reseller Status
      In early June, GSA demanded detailed Original Equipment Manufacturer (OEM) cost data from ten leading value-added resellers, a move industry analysts call an existential issue for traditional margin models. Additionally, Senior IT officials publicly confirm that OneGov will make OEMs the prime contractors and shift resellers to subcontractor status.[iii]
   4. Lean, Automated GSA Workforce
      Concurrently, GSA has increased its voluntary separation (VERA/VSIP) offers to employees within its Technology Transformation Services, resulting in fewer contracting officer and COR staff that will oversee rapidly consolidated vehicles.

Looking Ahead: The Second 90 Days (June 19–September 16, 2025)

A Federal Register will open a 30-day comment window, during which industry can shape carve-out criteria (e.g., VA medical devices, USDA specialty supplies) and BIC (Best-In-Class) scoring methodologies.

With the master plan in OMB’s hands, contractors must shift from initial shock to strategic action:

1. 1.  Public Plan Release & Comment (July)
      When OMB publishes the comprehensive plan, legal and capture teams should rapidly draft comments addressing their concerns. 
   2. Carve-Out & Waiver Petitions (July)
      Agencies requiring specialized procurements (e.g., VA, USDA) will file justifications; industry alliances can influence the narrow scope of approved carve-outs by comments and waiver petitions. 
   3. Pilot Task-Order Migrations (August)
      Expect the first live migrations from SEWP V to Alliant 2 and from CIO-SP to 8(a) STARS III in August. Contractors should finalize backfill strategies by end of July to avoid service disruptions.[iv]
   4. FedRAMP 20× Draft (August)
      GSA announced FedRAMP overhaul aligned with AI-driven acquisition which should appear in draft form.[v]

A Strategic 90-Day Roadmap for Contractors

To convert uncertainty into advantage, firm leadership should address the following action items in the upcoming months:

Conclusion

EO 14240 has potentially triggered a dramatic re-centralization of civilian buying power that will require nimble reaction from contractors. We will keep our clients apprised of developments that may affect their strategies.

For more information, contact us below.

NOVA Business Law Group LLP 
Fairfax, Virginia 703.766.8081    

[i] NextGov – GSA prepping plans to move NASA SEWP and NIH contract vehicles under its management

[ii] FedScoop – GSA Touts New Procurement Automation Tool

[iii] Washington Technology – Where GSA sees resellers fitting into its unified procurement strategy

[iv] NextGov – GSA prepping plans to move NASA SEWP and NIH contract vehicles under its management

[v] FedRAMP 20x – Three Months In and Maximizing Innovation