GSA Discusses Procurement Consolidation and FAR Overhaul

Key Points:

• Recent Executive Orders direct GSA to consolidate procurement and lead a fundamental FAR reform.
• Consolidation will reduce contract duplication, expand Best-in-Class vehicles, and shift agencies toward centralized buying.
• Contractors must adapt to larger, bundled procurements with stronger compliance and performance requirements.
• Price Reporter helps businesses navigate GSA contracts and succeed in the evolving federal marketplace.

• Executive Orders Driving Change
• Procurement Consolidation Explained
• FAR Overhaul Initiative
• Highlights from GSA Industry Engagement
• Implications for Industry and Market Strategy
• Recommendations for Contractors
• Workforce, Training, and Resources
• Conclusion
• FAQ: GSA Discusses Procurement Consolidation and FAR Overhaul

The federal procurement landscape is entering a new phase of reform as recent Executive Orders reshape how the government buys goods and services. These directives task the General Services Administration (GSA) with a larger role in consolidating procurement across agencies and simplifying the Federal Acquisition Regulation (FAR). The combined effect is expected to reduce duplication, cut costs, and modernize acquisition practices.

For contractors, these changes may redefine competitive strategies and access to government opportunities. Agencies will be shifting more responsibilities to GSA, which means adapting to new contract vehicles and processes will be critical. For taxpayers, the intent is clear: save money while ensuring government spending delivers greater value. The coming reforms signal not just procedural updates but a potential transformation of the entire federal acquisition system.

Executive Orders Driving Change

The federal acquisition system has long been criticized for being fragmented, overly complex, and expensive to maintain. In response, the current administration issued two pivotal Executive Orders that aim to reshape the future of procurement.

Executive Order 14240, Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement, directs the GSA to take the lead role in purchasing common goods and services across the federal government. Instead of multiple agencies running parallel contract vehicles for similar needs, the GSA will act as the centralized buyer. This approach is intended to reduce duplication, strengthen category management practices, and leverage the federal government’s massive buying power to achieve better pricing and efficiency. For example, contract vehicles such as government-wide acquisition contracts (GWACs) and other shared solutions will increasingly be managed under GSA’s umbrella.

Executive Order 14275, Restoring Common Sense to Federal Procurement, addresses the second major challenge: the outdated and overly complicated Federal Acquisition Regulation. FAR was originally designed to unify acquisition rules across agencies, but over the decades it has grown into a dense framework that is difficult to navigate. EO 14275 calls for a fundamental overhaul of the FAR to remove unnecessary provisions, simplify language, and ensure that only statutory or essential requirements remain in place. Agency-specific supplements like the GSAR will also be rewritten to align with this streamlined framework.

These two orders are tightly connected. Consolidating procurement under GSA can only succeed if the rulebook guiding federal acquisitions is clear, modern, and efficient. A simplified FAR will allow GSA to implement consolidation policies more smoothly, while centralized buying will provide the practical platform to test and enforce the reformed rules. For contractors, the message is clear: prepare for fewer but larger contract vehicles, greater reliance on GSA-managed solutions, and a procurement process that emphasizes clarity and cost savings over bureaucracy.

Procurement Consolidation Explained

The idea of consolidating federal procurement is not entirely new. In 2020, the GSA completed the Multiple Award Schedule (MAS) Consolidation, merging 24 separate schedules into one unified contract vehicle. That effort simplified offerings, reduced redundancy, and made it easier for both agencies and contractors to navigate the federal marketplace. It also demonstrated that consolidation, when managed carefully, can create efficiency without eliminating opportunities.

Building on that experience, the GSA is now expanding the concept beyond its own schedules. Under the new mandate, the agency will oversee a broader range of procurement activities that previously belonged to other departments. This includes the management of government-wide acquisition contracts (GWACs), integration of the OASIS+ professional services vehicle, and alignment of existing MAS offerings under a single strategic framework. In addition, GSA will increase the use of Global Supply programs and shared services such as fleet management and assisted acquisitions to centralize common buying needs.

The potential benefits for the government are significant. Consolidation is expected to reduce contract duplication, strengthen category management, and generate large-scale savings through the power of centralized buying. Agencies can shift their resources away from managing multiple overlapping contracts and focus more on mission delivery. At the same time, taxpayers stand to benefit from reduced costs and a more accountable system.

For industry, however, the picture is more complex. Larger, bundled procurements may reduce the number of individual opportunities available to smaller contractors. Competition could become more intense as multiple providers vie for positions on fewer contract vehicles. While Best-in-Class solutions may create predictable pathways for established vendors, smaller businesses will need to carefully evaluate whether to pursue direct contract awards or form partnerships with larger firms. The success of procurement consolidation will ultimately depend on GSA’s ability to balance efficiency with inclusivity in the federal marketplace.

Comments from Price Reporter: Based on our experience, consolidation always comes with both challenges and opportunities. While the number of available contract vehicles may decrease, their value and strategic importance increase significantly. Contractors who prepare early by building partnerships and aligning with larger acquisitions gain a clear competitive edge during the transition period.

FAR Overhaul Initiative

The Federal Acquisition Regulation has been the foundation of government contracting for more than four decades. While it was intended to unify acquisition rules across agencies, over time the FAR has become a dense and often confusing framework. Layer upon layer of updates has slowed procurement, increased compliance costs, and discouraged new entrants to the federal market.

The new Executive Order directs a complete rewrite of the FAR. The initiative has two key dimensions: the goals of the reform and the methods of implementation.

Focus Area	Details
Simplification	Remove outdated provisions, streamline language, and make the FAR easier to use.
Commercial practices	Align acquisition rules with private sector standards to speed up buying.
Consistency	Update agency supplements such as GSAR to match the revised FAR structure.
Immediate actions	Introduce interim deviations to apply select changes without delay.
Testing phase	Pilot new approaches and collect industry feedback before final adoption.
Long-term rewrite	Redraft entire FAR parts to reflect the simplified structure.
Supporting resources	Develop companion guides, buying guides, and practitioner tools to assist agencies and vendors.

For contractors, the overhaul represents both challenges and opportunities. Familiar rules are being reshaped, but the result should be a more predictable regulatory environment with fewer administrative burdens. Companies that track updates closely and provide feedback will be best positioned to succeed, as the new framework takes hold.

Highlights from GSA Industry Engagement

During recent webinars and industry meetings, GSA officials outlined how procurement consolidation and the FAR overhaul will take shape. These sessions offered important clarifications for contractors and highlighted what the agency considers its top priorities.

Key takeaways from GSA’s engagement with industry include:

• Consolidation will expand GSA’s role, with the agency managing more government-wide acquisition contracts and shared services.
• Ongoing solicitations such as SEWP VI will continue rather than being canceled or restarted.
• The agency will use a mix of tools, including MAS, OASIS+, GWACs, Global Supply, and assisted acquisitions, instead of a single consolidation path.
• Leadership stressed the importance of competitive pricing, strong performance outcomes, and greater access to innovative commercial solutions.
• GSA encouraged contractors to remain engaged through Acquisition.gov resources, new buying guides, and policy documents available in the Acquisition Policy Library.

Speakers such as Acting Administrator Steven Ehikian, Federal Acquisition Service Commissioner Josh Gruenbaum, and Senior Procurement Executive Jeff Koses underscored that industry participation will be critical to making the reforms successful. Their consistent message was that GSA wants to build a procurement system that is easier to use, more efficient, and better aligned with the needs of both government agencies and vendors.

Implications for Industry and Market Strategy

The consolidation of procurement under GSA is expected to reshape the federal contracting market in significant ways. By centralizing common goods and services, the government is reducing the number of overlapping contract vehicles and shifting toward fewer, larger opportunities. This change will create a more competitive environment where winning a position on a major contract can determine a company’s long-term access to federal business.

For small businesses, the implications are mixed. On one hand, consolidation could reduce the number of direct opportunities available, as more requirements are bundled into large acquisitions. On the other hand, GSA has repeatedly stated that small business participation remains a priority, and subcontracting or teaming arrangements may become more critical pathways to market access. Smaller firms will need to evaluate carefully whether to pursue prime contracts or focus on strategic partnerships with larger vendors.

A defining feature of the new environment will be the government’s emphasis on Best-in-Class contract vehicles. These vehicles are designed to represent the highest standards in terms of cost efficiency, performance, and compliance. Agencies will be directed to use them first whenever possible, which means contractors who secure positions on Best-in-Class contracts will enjoy a clear competitive advantage.

Another important trend is the growing focus on performance metrics and compliance standards. Agencies are expected to place greater weight on past performance, delivery reliability, and adherence to contract requirements. For contractors, this means that compliance is not simply a box-checking exercise but a critical factor in maintaining competitiveness.

In summary, contractors should anticipate:

• Fewer but larger opportunities, creating a need for strong positioning on key vehicles.
• Greater reliance on teaming and subcontracting for small businesses.
• A shift toward Best-in-Class contracts as the preferred procurement option.
• Increased scrutiny of performance data and compliance records.

The federal market will remain full of opportunities, but success will depend on how effectively companies adapt their strategies to fit this new procurement landscape.

Comments from Price Reporter: For small and mid-sized businesses, competing alone in large bundled procurements is becoming increasingly difficult. In this environment, partnerships with experienced contractors or advisors are not only helpful but often essential. Such collaborations provide access to larger opportunities while reducing the risk of compliance missteps and costly delays.

Recommendations for Contractors

The upcoming changes in procurement require contractors to think strategically about how they position themselves in the federal market. Success will depend on preparation, flexibility, and a willingness to adapt to the evolving acquisition landscape.

For new entrants, the first step is understanding how to access the federal market efficiently. Securing a Multiple Award Schedule contract remains a proven pathway, but it is not the only option. Partnering with established GSA contract holders can provide a faster route to opportunities while building a track record of performance. New players should also invest in compliance readiness from the outset, as agencies will continue to place strong emphasis on performance and accountability.

For existing contractors, the decision becomes whether to manage a schedule contract independently or to pursue teaming arrangements. Holding your own contract provides direct control over pricing, offerings, and compliance, but it also requires resources and expertise. In contrast, partnering with other vendors can reduce administrative burdens and open doors to larger opportunities, especially as procurement processes become more consolidated.

Preparation for bundled and large-scale acquisitions is also essential. Contractors will need to evaluate their capacity to deliver on broader requirements, which may involve expanding capabilities or forming alliances with complementary providers. Building scalable teams and strengthening supply chains will help contractors remain competitive in this new environment.

Finally, the role of consultants and subject matter experts should not be underestimated. Specialists in GSA contracting can help companies navigate modifications, maintain compliance, and align go-to-market strategies with the government’s new priorities. Leveraging expert guidance can save time, reduce risk, and position contractors more effectively for long-term success.

Workforce, Training, and Resources

A major reform effort such as procurement consolidation and the FAR overhaul cannot succeed without preparing the acquisition workforce. To support this transition, the Federal Acquisition Institute (FAI) and the Defense Acquisition University (DAU) are working closely with GSA and the FAR Council to ensure that contracting professionals have access to the tools and training they need. Their role is to provide both formal education and practical resources that explain how to apply new rules in daily acquisition activities.

Among the resources being developed are companion guides, which translate regulatory language into plain instructions and illustrate how changes should be applied in practice. Category buying guides are also planned to help agencies make purchasing decisions in alignment with the new procurement framework. In addition, practitioner resources such as case studies and implementation “albums” are being created to show real-world examples of how the new FAR parts are expected to work. These tools are not regulatory documents but practical aids designed to ease adoption and reduce confusion.

Equally important are the channels of communication between government and industry. GSA has encouraged contractors to provide input through Acquisition.gov, public comment windows, and webinars. While not every comment will receive an individual response, the feedback is reviewed and considered during the reform process. For vendors, participating in these channels is an opportunity to influence how rules are shaped and to better understand how agencies intend to implement the changes.

By combining training, guidance, and open communication, the government is attempting to create a smoother transition for both agencies and contractors. Companies that stay engaged with these resources and actively contribute feedback will be better equipped to adapt to the evolving procurement environment.

Conclusion

The consolidation of procurement and the overhaul of the FAR represent some of the most significant changes in federal acquisition in decades. For agencies, these reforms are expected to streamline purchasing, cut waste, and provide better value to taxpayers. For contractors, the changes bring both risks and opportunities. Competition will intensify around fewer but larger contract vehicles, while compliance and performance standards will carry more weight than ever.

The ability to adopt early on will be critical. Contractors that align their strategies with GSA’s consolidation efforts, prepare for bundled procurements, and engage actively through available feedback channels will be best positioned to succeed. While the transition may challenge traditional ways of doing business, it also opens the door to new efficiencies, stronger partnerships, and broader access to government spending.

At Price Reporter, we have built our reputation as experts in GSA consulting by helping more than a thousand companies establish, manage, and grow their government business. With nearly two decades of experience and a proven track record of guiding clients through complex regulatory changes, our team is ready to support contractors in navigating this new procurement landscape. The reforms underway confirm one reality: success in federal contracting requires both adaptability and expert guidance, and we are here to provide that foundation.

FAQ: GSA Discusses Procurement Consolidation and FAR Overhaul

What is the main purpose of consolidating procurement under GSA?

The goal of consolidation is to centralize common buying activities within the GSA, which reduces duplication and streamlines procurement. By handling more of the government’s contracts, GSA can leverage economies of scale to secure better pricing. This approach also allows federal agencies to focus more on their missions rather than managing overlapping contract vehicles.

How will the FAR overhaul affect contractors in practice?

The FAR overhaul aims to simplify acquisition rules and remove outdated requirements. For contractors, this means fewer administrative hurdles and clearer guidance when responding to solicitations. While the transition will require adjustments, the long-term outcome should be a more predictable and accessible contracting environment.

Will small businesses face greater challenges under the new system?

Small businesses may encounter fewer stand-alone opportunities, as more contracts are bundled into larger vehicles. However, GSA has emphasized the importance of maintaining small business participation. Subcontracting and teaming arrangements will continue to provide entry points, and proactive companies can still compete successfully in the new framework.

Why are Best-in-Class contracts becoming more important?

Best-in-Class contracts are designed to represent the most efficient, cost-effective, and high-performing contract vehicles available. Agencies are expected to prioritize these vehicles before turning to other options. For contractors, securing a position on a Best-in-Class contract can offer long-term access to recurring opportunities and a stronger competitive position in the federal market.

How can contractors prepare for the upcoming changes?

Contractors should begin by assessing their capacity to participate in larger, consolidated procurements. Building strong compliance systems, investing in performance tracking, and seeking partnerships with established vendors can all improve readiness. In addition, engaging with GSA through Acquisition.gov and related industry channels will help businesses stay informed and adapt their strategies early.