Fact Sheet: President Donald J. Trump Eliminates Waste and Saves Taxpayer Dollars by Consolidating Procurement
CONSOLIDATING PROCUREMENT: Today, President Donald J. Trump signed an Executive Order consolidating federal procurement for common goods and services in the General Services Administration (GSA)—the agency designed to conduct procurement—which will eliminate waste, inefficiencies, and duplication and enable agencies to focus on their core mission of delivering excellent services to the American people.
On March 20, 2025, President Donald J. Trump signed an executive order titled "Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement," aiming to streamline federal procurement processes and reduce unnecessary expenditures.
Key Provisions of the Executive Order:
-
Centralization of Procurement: The order mandates that the General Services Administration (GSA) assume responsibility for procuring common goods and services across federal agencies. This consolidation is intended to eliminate redundancies and achieve cost savings. Home | Holland & Knight+1The White House+1
-
Agency Compliance: Federal agencies are required to submit proposals to GSA within 60 days, detailing plans to transition their procurement functions for common goods and services to GSA oversight. Federal News Network+4The White House+4Meritalk+4
-
Development of a Comprehensive Plan: GSA, in collaboration with the Office of Management and Budget (OMB), is tasked with formulating a government-wide strategy to consolidate procurement activities, aiming to enhance efficiency and service delivery. The White House
Anticipated Benefits:
-
Cost Savings: By leveraging centralized purchasing, the government expects to negotiate better pricing, potentially saving taxpayers approximately $50 billion annually. For instance, standardizing the acquisition of software licenses, such as Microsoft Office 365, could result in significant cost reductions.
-
Elimination of Redundancies: The consolidation seeks to address inefficiencies arising from multiple agencies independently procuring identical goods and services, thereby reducing administrative overhead. The White House
Background and Rationale:
The federal government is the largest purchaser globally, spending approximately $490 billion annually on contracts for common goods and services. Historically, decentralized procurement led to pricing inconsistencies and inefficiencies. For example, the cost of a comprehensive suite of Microsoft Office 365 services could vary between agencies by more than $200 per license. Consolidating such acquisitions under GSA could result in more than $100 million in annual savings. FedScoop+3FedScoop+3Meritalk+3
Implementation and Oversight:
The executive order builds upon prior efforts by GSA, which, since January 20, 2025, has coordinated the termination or economization of over 6,000 contracts across the federal government. The current directive expands these efforts, emphasizing a streamlined, centralized approach to procurement to ensure taxpayer dollars are spent wisely and efficiently. The White House
This initiative reflects the administration's commitment to fiscal responsibility by cutting unnecessary bureaucratic bloat and redirecting resources to priorities that directly benefit the American people. Reuters
- Since January 20th, 2025, GSA has coordinated the termination or economization of over 6,000 contracts across the federal government. This Executive Order expands upon those efforts by directing:
- Agency Heads to submit proposals to GSA for consolidating domestic procurement functions for common goods and services within GSA, the agency with expertise in such procurement.
- GSA and the Office of Management and Budget (OMB) to develop a comprehensive plan for consolidating common goods and services procurement across the government to eliminate waste and duplication, while delivering the best possible services to the American people.
- Agencies to designate GSA as the executive agent for the administration of government-wide acquisition contracts.
RESTORING COMMON SENSE TO ACQUISITION: President Trump believes that a streamlined, centralized approach to procurement is essential to ensuring taxpayer dollars are spent wisely and efficiently.
- The government spends about $490 billion per year on federal contracts for common goods and services, making it the largest buyer of goods and services in the world.
- For too long, agencies have independently purchased office productivity software, leading to numerous challenges and inefficiencies, including pricing inconsistencies.
- For example, the cost of a comprehensive suite of Microsoft Office 365 services could vary between agencies by more than $200 per license.
- Consolidating the acquisition of this software in GSA could result in more than $100M in savings per year.
- Agencies buy a wide range of common goods like band saw blades and televisions, which could be centralized in GSA and result in major savings for the American taxpayer.
- For a 32-7/8″ band saw blade, GSA’s average purchase price is 22% lower than that available through other government procurement vehicles and on the commercial market.
- For a 50-inch flat screen TV, GSA’s average purchase price is 20% lower than that available through other government procurement vehicles, and almost 30% lower than commercial market pricing.
- The federal government routinely handles sensitive information and buys identity protection services to prevent and respond to data breaches—however, these are purchased in a decentralized manner, leading to inconsistent pricing and underutilization of volume-based discounts.
- GSA has an established purchasing solution that channels government-wide demand and saved $150 million in FY 24 alone.
- Every government agency needs to purchase computers for their employees to effectively serve the American people, totaling well over $1 billion annually.
- Over the last 10 years, almost $6 billion has gone through GSA, which realizes an average savings rate of 38%.
- While NASA, NIH, Army, and GSA have set up a program to establish minimum computer standards and leverage the volume of government purchasing to achieve savings, not every agency has taken advantage of the program to reduce their costs.
- Centralizing and standardizing procurement will make purchasing as simple and efficient as possible.
- Using the aforementioned savings examples as a proxy, a 10% reduction in spending through this consolidation initiative could result in approximately $50 billion in savings to the taxpayers per year.
ELIMINATING WASTE: Since Day One, President Trump has been laser focused on eliminating waste, fraud, and abuse in the federal government.
- This Executive Order builds on his administration’s broader commitment to fiscal responsibility, cutting unnecessary bureaucratic bloat and redirecting resources to priorities that directly benefit the American people.
- President Trump’s Department of Government Efficiency (DOGE) has already identified more than $100 billion in estimated savings from a “combination of asset sales, contract/lease cancellations and renegotiations, fraud and improper payment deletion, grant cancellations, interest savings, programmatic changes, regulatory savings, and workforce reductions.”