By Tara Franzonello, Program Development Manager
The recent executive orders and memoranda that consolidate procurement under the General Services Administration (GSA) will have a direct impact on the way federal contractors do business.
What does it all mean for IT vendors and solutions providers, and how could it affect your company’s go-to-market (GTM) strategy?
Let’s start with some background.
EO 14240: Consolidating procurement under GSA
Executive Order 14240, issued on March 20, 2025, calls for consolidation of domestic federal procurement under GSA. The purpose is to let GSA focus on procurement activities, allowing agencies to concentrate on fulfilling their missions.
The EO called for “government-wide indefinite delivery contract vehicles for information technology for agencies across the government” to avoid “contract duplication, redundancy, and other inefficiencies.”
Why? Category management translates to significant cost savings for the federal government. “Organized buying” lets the government leverage its size and buying power to avoid higher costs — yet most federal government procurement occurs with non-GSA contracts.
By focusing on procurement strategies around centralization and consolidation — using best-in-class and government-wide contracts through the GSA — the federal government believes it will avoid significant procurement costs.
OMB Memorandum M-25-31: Optimizing contract value
To help carry out Executive Order 14240, OMB issued Memorandum M-25-31 on July 18, 2025.
The memo seeks to “support the successful implementation of the executive order and optimization of contract value through smart, aggressive consolidation of buying activities for common goods and services.”
The guidance focuses on two key areas:
- Increased use of centralized contracts
- Centralization of procurement functions
To assist with government-wide contracts, the Federal Acquisition Regulatory (FAR) Council will make amendments through the Revolutionary FAR Overhaul. This overhaul initiative maintains that, “if a commercial product or service meeting the agency’s requirements is available on an existing contract awarded for government-wide use by GSA or another agency, the agency must use the existing contract vehicle instead of awarding a separate new contract, unless the head of the agency provides an exception.”
Advice for vendors and solutions providers
Consolidating federal procurement under GSA and centralizing contracts and procurement functions is how the government will buy going forward. From a practical standpoint, here are three recommendations for companies selling to the federal government:
- If you’re new to the federal market, you’ll need to secure a GSA schedule contract — or partner with a trusted GSA schedule contract holder. Partners can provide flexibility to accommodate your federal GTM strategy.
- Are you an established federal vendor or solutions provider? Decide whether to hold and manage your own GSA schedule contract. If you go that route, look for a trusted advisor with specific expertise in GSA schedule contract pursuit, management and compliance. If not, find a partner that provides engagement flexibility to support your GTM strategy.
- Consolidated bidding opportunities may signal a shift toward larger, bundled acquisitions. Be ready to respond to these solicitations addressing common needs.
Consolidating procurement of common goods and services in GSA may mean IT vendors and solutions providers must rethink their strategy. Even though today’s new procurement landscape may be different than what we’ve become used to, it doesn’t have to be overwhelming.
If your company needs assistance in aligning to this new procurement landscape on its own, you can partner with a trusted advisor that can offer guidance, expertise and flexibility in strategies.
immixGroup holds multiple contracts, including GSA, for your use. If you have a GSA contract, we can manage that as a service for you — freeing up internal resources as you grow your federal business. Contact us here to ask how we can help your company during these evolving times.
This commentary is adapted from information first published in Washington Technology. For the full original commentary, click here.
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