Federal Procurement Is Centralizing. Here Is Why Your GSA Schedule Just Became Essential.

The federal government spends approximately $490 billion per year on common goods and services. Today, only 20% of that flows through GSA contract vehicles. A series of executive orders, OMB directives, and FAR changes are now mandating that agencies consolidate procurement through GSA — a shift that could quadruple the volume moving through GSA schedules.

Last updated: April 7, 2026

If you are a federal contractor — or thinking about becoming one — the single most important trend in government procurement right now is centralization. The current administration is consolidating purchasing authority at GSA on a scale that has no precedent. For contractors holding a GSA Multiple Award Schedule, this is the best environment in the program's history. For those without one, the urgency to get on schedule has never been higher.

This article breaks down what is happening, why it matters, and what contractors should do about it.

Executive Order 14240: The Mandate

On March 20, 2025, the President signed Executive Order 14240, titled "Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement." The order directs that the federal government's contract spending for common goods and services be consolidated under GSA.

The key numbers:

• $490 billion in annual federal spending on common goods and services is the consolidation target.
• Only 20% of that spend currently flows through GSA vehicles. The remaining 80% is spread across thousands of agency-specific contracts.
• Agencies must submit transition plans within 60 days to move purchasing to GSA.
• GSA must develop a comprehensive centralized procurement plan within 90 days.

GSA responded by establishing the Office of Centralized Acquisition Services as the hub for buying common goods and services across the federal government. The agency is also absorbing contracting responsibilities from OPM, DOE, SBA, and HUD through its Federal Acquisition Service.

The GSA Administrator has stated publicly that the executive order is expected to quadruple GSA's contracting volume. That is not analyst speculation — it is the stated expectation of the agency running the program.

OMB M-25-31: The Implementation Plan

In July 2025, OMB released Memorandum M-25-31, "Consolidating Federal Procurement Activities," which provides the implementation details for the executive order. This memo transforms the executive order from policy direction into operational reality.

Key provisions:

• 10 categories of common goods and services have been identified, representing $488.9 billion in FY 2024 federal spending.
• GSA leads 7 of the 10 categories: Information Technology, Professional Services, Facilities & Construction, Security & Protection, Office Management, Industrial Products & Services, and Travel.
• The FAR Council is developing language requiring agencies to use existing government-wide contracts when commercial products and services meet their requirements.
• Agencies get 30 days after FAR guidance is issued to implement compliance.

This is the critical shift: agencies will be required to justify not using GSA vehicles, rather than justify using them. The default is flipping.

FAR Part 8 Overhaul: Making It Mandatory

OFPP and the FAR Council are overhauling FAR Part 8 to mandate the use of Best-in-Class (BIC) or preferred contract vehicles for common goods and services. Under the new framework:

• Agencies will be required to use BIC contracts whenever appropriate. GSA MAS is a designated BIC vehicle.
• If an agency does not use an existing government-wide contract, it will need approval and justification.
• Preferred contracts are the fallback tier — agencies must exhaust BIC options first.

This is not guidance. This is regulatory change to the Federal Acquisition Regulation — the rulebook every contracting officer follows. Once the FAR language is finalized, using GSA vehicles becomes the legal default for common purchases.

The Numbers Tell the Story

GSA MAS sales have been growing steadily even before the centralization mandate:

The slight FY 2025 dip reflects DOGE-driven disruptions — hiring freezes, credit card freezes, and contract cancellations — not a decline in demand. With the FAR mandate and agency transition plans now in motion, the volume trajectory from FY 2026 onward is expected to accelerate sharply.

For context: GSA Schedules and GWACs combined represented $126.55 billion — about 16.3% — of $774.91 billion in total federal contract awards in FY 2024. That share is positioned to grow substantially as the new regulations take effect.

Category Management: $111 Billion in Savings and Counting

The centralization push builds on the category management framework that has been in place since 2014. Under category management, the government treats common purchases like a business portfolio — consolidating requirements, leveraging volume, and using shared contract vehicles to get better pricing.

The results have been significant:

• $111+ billion in cumulative savings since inception.
• $16.7 billion in savings in FY 2024 alone (up from $13.2B in 2020).
• 78.5% of government contract obligations ($384 billion) now meet OMB's "spend under management" criteria.
• $66 billion (13.6% of total spending) is in the "Best-in-Class" tier — the tier that includes GSA MAS.

The current administration projects $10 billion per year in ongoing savings from category management and centralization efforts. These savings create the political and financial incentive to keep pushing procurement toward GSA vehicles.

The DOGE Effect

The Department of Government Efficiency (DOGE) has reinforced the centralization trend from a different angle. Since January 2025:

• GSA has driven $60 billion in contract savings across the federal government.
• $500 million+ in unnecessary or underperforming contracts have been canceled within GSA.
• 200,000 government credit cards were frozen; SmartPay cards were hit with a $1 spending limit.
• GSA eliminated 1,600+ unnecessary contracts and 577 vendors not meeting sales or compliance thresholds.

The credit card freezes and contract cancellations push agencies toward the path of least resistance: pre-approved GSA vehicles where compliance, pricing, and vendor vetting are already done. When a contracting officer has fewer tools and less staff, they default to the vehicle that requires the least justification — and that is GSA MAS.

GSA's OneGov Strategy

GSA is not passively waiting for agencies to comply. It is actively building the infrastructure to handle the increased volume:

• 17 technology agreements executed with companies including Adobe, Anthropic, AWS, Google, Microsoft, Oracle, SAP, ServiceNow, and OpenAI — delivering up to 90% discounts on widely-used commercial software.
• 150+ AI programs being piloted and 132 generative AI tools deployed across GSA operations.
• New IT subcategories for AI, Cloud, and HACS (Highly Adaptive Cybersecurity Services) being added to MAS.
• GO.gov launching as the single travel management solution for all civilian agencies.

GSA is expanding its capacity to serve as the government's primary procurement arm — not just maintaining the existing program but building for a future where it handles multiples of its current volume.

What This Means for Contractors

The policy environment has never been more favorable for GSA Schedule holders. Here is the practical impact:

If You Have a GSA Schedule

• Your addressable market is about to expand significantly as agencies shift open-market purchases to GSA vehicles.
• Contracting officers who previously had discretion to buy off-schedule will now need to justify why they are not using your vehicle.
• Consider adding SINs to capture adjacent categories as agencies consolidate requirements.
• Ensure your GSA Advantage listings are current and your pricing is competitive — increased volume means increased competition among schedule holders.

If You Do Not Have a GSA Schedule

• The urgency has increased. As agencies are required to use GSA vehicles first, contractors without a schedule will find it harder to compete for common goods and services contracts.
• Open-market opportunities will shrink as procurement officers consolidate purchases through existing vehicles.
• The window to get on schedule before the FAR changes take full effect is narrowing. GSA Schedule applications typically take 6-12 months from submission to award.
• Small businesses have a particular incentive: small businesses represent 45-48% of GSA Schedule awards, compared to roughly 23% of total federal contract awards. The schedule is disproportionately favorable to small business.

The Bottom Line

Federal procurement is centralizing at an unprecedented pace. Three forces are converging simultaneously:

1. Executive Order 14240 directs agencies to move common purchases to GSA.
2. OMB M-25-31 provides the implementation plan with deadlines and categories.
3. FAR Part 8 changes will make GSA vehicle usage the regulatory default.

Only 20% of $490 billion in common federal spend currently flows through GSA vehicles. The stated goal is to capture the remaining 80%. Even if half of that shifts, GSA vehicle throughput will more than double.

For contractors, the math is simple: get on schedule now, or risk being locked out of the fastest-growing procurement channel in the federal government.

Get on Schedule with GovCert

GovCert automates the GSA Schedule application process for $1,000 — Refresh 31-compliant SIN selection, corporate experience narratives, labor category pricing, quality control plans, and eOffer submission guidance. Human support is included. Most applicants complete their offer in days, not months.

Traditional GSA consultants charge $10,000 to $25,000. The opportunity cost of waiting while the market shifts is even higher.