Breaking: Administration plans to centralize all federal contracting at GSA to cut costs

Bloomberg reports the Trump administration is moving to consolidate federal purchasing into GSA, aiming to cut costs and reduce the federal acquisition workforce, according to sources familiar with the plan. The effort would shift purchasing authority from more than 100 agencies to a single procurement hub, favoring large contractors who can handle high-value contracts.

Guidance for streamlining acquisitions is expected in the coming weeks, with GSA positioned as the lead agency. “GSA is ready to serve the administration as we’re asked,” said Josh Gruenbaum, Trump’s appointee as commissioner of the Federal Acquisition Service.

As part of this effort, OPM has already dismissed employees from its contracting office. GSA followed suit, reportedly terminating 40 staffers. With only 11 percent of federal contract administrators working at GSA, the changes could impact civilian agencies broadly, though DOD and NASA—governed by separate acquisition rules—may be less affected.

This move highlights the executive branch’s control over federal spending and has sparked debate in Washington. Additionally, GSA’s recent procurement rule exemptions—allowing agencies to bypass non-discrimination and sustainability requirements—are facing legal challenges. A Maryland judge temporarily blocked a related executive order limiting diversity, equity, and inclusion measures in contracting.