The General Services Administration is implementing significant procurement reforms for 2025, centralizing federal purchasing authority under GSA oversight. Key changes include restructuring the Multiple Award Schedule program, which generated $51.5 billion in sales last year, and introducing stricter performance requirements for contractors. Federal agencies must submit procurement proposals by May 19, 2025, while GSA’s thorough plan is due to OMB by June 18, 2025. These reforms represent fundamental shifts in federal procurement practices, with detailed guidance forthcoming for both agencies and contractors.
Key Changes to GSA Procurement in 2025
Major changes are coming to federal procurement in 2025 as the General Services Administration (GSA) implements sweeping reforms to its contracting processes. The reforms stem from a new executive order that centralizes procurement functions for common goods and services under the GSA’s authority, marking a significant shift in how federal agencies manage their purchasing activities. The OMB director is required to officially designate GSA as the executive agent for government-wide IT acquisition contracts within 30 days.
The Multiple Award Schedule (MAS) program is undergoing substantial modifications to enhance efficiency and performance. The GSA has implemented new policies allowing contracts that fail to meet sales thresholds to expire naturally, reducing the number of unnecessary agreements. The program generated $51.5 billion in total sales last year, demonstrating its significant impact on federal procurement. Additionally, the agency is strengthening measures to address contractor non-compliance and refining performance evaluation procedures to guarantee better outcomes. Vendors must demonstrate clear market understanding to maintain their position within the program.
Federal agencies must submit their proposals for domestic procurement consolidation by May 19, 2025, followed by the GSA’s thorough plan submission to the Office of Management and Budget (OMB) by June 18, 2025. These timeline requirements indicate that substantial changes in contracting processes will not take effect until late 2025, allowing time for proper planning and implementation.
The GSA has introduced new guidance for contracting officers regarding FAR class deviations, providing federal employees with increased flexibility to adapt contracts as needed. This enhancement in procurement adaptability allows for better responsiveness to evolving governmental requirements while maintaining compliance with federal regulations.
The consolidation of procurement functions is expected to result in fewer contracting opportunities and solicitations as the GSA focuses on streamlining the acquisition of common goods and services. This centralization aims to reduce duplication of effort across federal agencies and create a more efficient procurement system.
Contractors should prepare for these changes by understanding that the MAS program will become more selective, with a focus on maintaining productive and compliant contracts. The GSA’s enhanced oversight measures and performance evaluation procedures will require contractors to demonstrate consistent value and compliance to maintain their contract status.
The implementation of these reforms represents a significant transformation in federal procurement practices. While the changes may initially reduce some contracting opportunities, they are designed to create a more efficient and effective procurement system.
The extended timeline for implementation allows agencies and contractors to adapt their processes and prepare for the new procurement landscape that will emerge in late 2025.
