Procurement Consolidation (E.O. 14240)

Summary

Moves the job of buying common goods for all government agencies to one main agency to stop waste and save taxpayer money.

What problem does this solve?

The government spends billions on common items, but many agencies buy them separately, which is wasteful. This order makes one agency, the General Services Administration, the main buyer to get better deals and save money.

Who does this affect?

Federal agencies
Government contractors

What does this order do?

Consolidates government purchasing

Requires most government agencies to have the General Services Administration (GSA) handle their buying of common goods and services to stop waste.

Centralizes IT purchasing

Makes the head of the GSA the main person in charge of all government-wide contracts for information technology.

Requires agencies to create consolidation plans

Orders the heads of government agencies to send plans to the GSA within 60 days for moving their purchasing activities.

Requires GSA to develop a master plan

Directs the head of the GSA to give a full plan to the Office of Management and Budget (OMB) within 90 days on how it will take over purchasing.

What is the real world impact?

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Increases government efficiency

Aims to streamline the process of buying common goods and services by putting one agency in charge. This reduces repeated work across many agencies and lets them focus on their main jobs.

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Reduces government spending

Saves taxpayer money by buying items in bulk through a single agency. This should lead to lower prices and less wasteful spending on common government purchases.

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May create purchasing bottlenecks

Putting one agency in charge of all buying could slow things down. Individual agencies might find it harder to get the specific items they need quickly, which could affect their work.

When does this start?

This order sets several deadlines for agencies and departments to complete specific actions within 14 to 90 days.

OMB memo on IT purchasing

Within 14 days, the Director of the Office of Management and Budget (OMB) must send a memo to agencies about the new IT purchasing rules.

Designation for IT contracts

Within 30 days, the OMB Director must name the GSA Administrator as the main agent for all government-wide IT buying contracts.

Agency proposals due

Within 60 days, the heads of agencies must send their plans for moving their purchasing to the GSA.

GSA master plan due

Within 90 days, the GSA Administrator must give a complete plan to the OMB for handling government-wide purchasing.