The federal procurement landscape is undergoing a significant transformation driven by a recent push for consolidation and modernization, spearheaded by the General Services Administration (GSA). The initiative, which aims to centralize procurement for common goods and services under the GSA, reflects an ambitious effort to eliminate waste, inefficiencies, and duplication across federal agencies.
In 2025, the head of GSA’s Federal Acquisition Service revealed plans to manage approximately $400 billion in procurement, marking a fourfold increase in volume by absorbing responsibilities from agencies such as the Office of Personnel Management. This consolidation effort is intended to streamline procurement processes, increase transparency, and reduce costs while addressing the challenge of reduced agency manpower. However, it also presents unprecedented operational challenges for agencies, contractors, and the broader procurement ecosystem.
A core obstacle identified in this modernization effort is the difficulty of effective management without robust metrics: “You can’t manage what you can’t measure.” Disparate procurement systems and non-standardized processes have historically fragmented purchasing visibility, making true consolidation a complex goal. Reduced staffing in contracting and procurement roles further exacerbates internal workflow management, while vendors face challenges in navigating agency procurement cycles due to decreased transparency and unclear points of contact.
To address these multifaceted challenges, modernization strategies emphasize the need for contractors to tailor their technologies and workflows to the unique compliance protocols and operational realities of federal agencies, rather than relying solely on commercial best practices. Flexibility in procurement platforms is crucial, allowing agencies to pivot with changes in mission priorities or leadership without losing progress.
Contractors are also encouraged to reconsider their cost models by absorbing recurring platform licensing fees and compliance expenses, which traditionally have been passed on to agencies. This approach could accelerate procurement awards and reinforce the collaborative partnership necessary to drive modernization forward, particularly as agencies operate under strict budget constraints.
Additionally, contractors must provide a streamlined, Amazon-like user experience to reduce digital clutter and improve procurement efficiency. For instance, legacy portals often present unwieldy search results—a problem that dynamic, user-friendly platforms can resolve, thereby decreasing ordering errors and enhancing confidence in transactions. Transparency and accountability are further bolstered through real-time, auditable data that tracks procurement milestones, helping to maintain trust between agencies and vendors throughout the fulfillment process.
On the agency side, the success of consolidation depends on embedding measurement and data visibility directly into procurement workflows. Breaking down program silos and adopting electronic data interchange standards are vital to enabling seamless data sharing and accelerating procurement timelines. Moreover, agencies must establish clear expectations in Requests for Proposals (RFPs) that vendors absorb certain modernization-related costs, anchoring fairness and transparency in total cost evaluations.
This drive for consolidation is underpinned by a Presidential Executive Order issued in March 2025, which tasked the GSA with consolidating federal procurement to eliminate waste and duplication. Since early 2025, the GSA has actively managed the termination or economization of over 6,000 contracts government-wide to support this objective. The coordination aims to free agencies to concentrate on their core missions and to deliver better services to the American public while enhancing value for taxpayers.
Complementing these efforts is the GSA’s initiative to improve the Multiple Award Schedule (MAS) Program by rightsizing contracts and addressing contractor non-compliance. Given that the MAS Program is the largest government commercial acquisition vehicle globally, these reforms are critical to maximize fiscal responsibility and procurement effectiveness.
Furthermore, a substantial overhaul of the Federal Acquisition Regulation (FAR) is underway, with GSA officials engaging thousands of industry stakeholders. This far-reaching revision seeks to consolidate contracting rules, reduce administrative burdens, and foster a competitive marketplace that harnesses private-sector innovation for cost-effective federal acquisitions, consistent with an additional Executive Order aimed at ensuring cost-effective commercial solutions in federal contracts.
The procurement consolidation initiative represents a transformative moment for government acquisition, presenting both significant hurdles and unprecedented opportunities. Success will require reimagined collaboration between agencies and industry partners, driven by flexibility, transparency, and a shared commitment to modernization. Through strategic adaptation and partnership, the federal government aims to build a procurement system that is not only more efficient and transparent but also better positioned to meet the evolving needs of public service in a fiscally responsible manner.
Source: Noah Wire Services
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