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Executive Order 14240
Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement
Signed March 20, 2025, printed at 90 FR 13671. 3 sections of substance, 861 words.
The government buys the same goods many times over. This order pools those buys in one place to cut waste.
Sec. 1. Policy
The Federal Government spends approximately $490 billion per year on Federal contracts for common goods and services--the types of goods and services purchased by nearly every executive department and agency (agencies)--making it the largest buyer of goods and services in the world. As a matter of sound management, these standardized procurement functions should be carried out in the most efficient and effective manner possible for the American taxpayer. The General Services Administration was established in 1949 through the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., to provide ``an economical and efficient system'' for the core procurement services for agencies (40 U.S.C. 101). It is time to return the General Services Administration to its original purpose, rather than continuing to have multiple agencies and agency subcomponents separately carry out
The Federal Government spends approximately $490 billion per year on Federal contracts for common goods and services--the types of goods and services purchased by nearly every executive department and agency (agencies)--making it the largest buyer of goods and services in the world. As a matter of sound management, these standardized procurement functions should be carried out in the most efficient and effective manner possible for the American taxpayer. The General Services Administration was established in 1949 through the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., to provide ``an economical and efficient system'' for the core procurement services for agencies (40 U.S.C. 101). It is time to return the General Services Administration to its original purpose, rather than continuing to have multiple agencies and agency subcomponents separately carry out
This sets out the case the order makes. It says the government spends about $490 billion a year on common goods. It calls it the largest buyer in the world. It says a 1949 law set up one agency to buy them. It says many agencies now buy separately. It says that agency should resume the role.
Sec. 2. Definitions
For the purposes of this order: (a) ``Administrator'' means the Administrator of General Services. (b) ``Agency'' has the meaning given to it in section 3502 of title 44, United States Code, except that such term does not include the Executive Office of the President or any components thereof. (c) ``Agency head'' means the highest-ranking official of an agency, such as the Secretary, Administrator, Chairman, or Director. (d) ``Common goods and services'' means the common Government-wide categories defined by the Category Management Leadership Council led by the Office of Management and Budget (OMB). (e) ``Indefinite delivery contract vehicle'' means an agreement through which an agency can order goods and services over a defined period without setting forth quantities or a delivery schedule up front.
For the purposes of this order: (a) ``Administrator'' means the Administrator of General Services. (b) ``Agency'' has the meaning given to it in section 3502 of title 44, United States Code, except that such term does not include the Executive Office of the President or any components thereof. (c) ``Agency head'' means the highest-ranking official of an agency, such as the Secretary, Administrator, Chairman, or Director. (d) ``Common goods and services'' means the common Government-wide categories defined by the Category Management Leadership Council led by the Office of Management and Budget (OMB). (e) ``Indefinite delivery contract vehicle'' means an agreement through which an agency can order goods and services over a defined period without setting forth quantities or a delivery schedule up front.
This defines the terms. Administrator means the head of the buying agency. Agency has its meaning in federal law. Agency head means the top person there. Common goods means the shared buying groups. An indefinite contract lets an agency order over time. No amount is fixed in advance.
Sec. 3. Procurement Consolidation
(a) Within 60 days of the date of this order, agency heads shall, in consultation with the agency's senior procurement officials, submit to the Administrator proposals, pursuant to 40 U.S.C. 101, 40 U.S.C. 501, or other relevant authorities, to have the General Services Administration conduct domestic procurement with respect to common goods and services for the agency, where permitted by law. (b) Within 90 days of the date of this order, the Administrator shall submit a comprehensive plan to the Director of OMB for the General Services Administration to procure common goods and services across the domestic components of the Government, where permitted by law. (c) Within 30 days of the date of this order, pursuant to the authority in 40 U.S.C. 11302(e), the Director of OMB shall designate the Administrator as the executive agent for all Government-wide acquisition contracts for
(a) Within 60 days of the date of this order, agency heads shall, in consultation with the agency's senior procurement officials, submit to the Administrator proposals, pursuant to 40 U.S.C. 101, 40 U.S.C. 501, or other relevant authorities, to have the General Services Administration conduct domestic procurement with respect to common goods and services for the agency, where permitted by law. (b) Within 90 days of the date of this order, the Administrator shall submit a comprehensive plan to the Director of OMB for the General Services Administration to procure common goods and services across the domestic components of the Government, where permitted by law. (c) Within 30 days of the date of this order, pursuant to the authority in 40 U.S.C. 11302(e), the Director of OMB shall designate the Administrator as the executive agent for all Government-wide acquisition contracts for
This pools federal buying. Within 60 days each agency must send proposals. Those ask the buying agency to buy for them. Within 90 days that agency must file a plan. The plan covers buying for the whole government. Within 30 days it is named the lead for shared contracts.
Sec. 4. General Provisions
Every order carries this. It is not what the order does.
(a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department, agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, Washington, March 20, 2025. [FR Doc. 2025-05197 Filed 3-24-25; 8:45 am] Billing code 3395-F4-P </pre></body> </html>
(a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department, agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, Washington, March 20, 2025. [FR Doc. 2025-05197 Filed 3-24-25; 8:45 am] Billing code 3395-F4-P </pre></body> </html>
This is the closing clause that nearly every order carries. It says the order does not change what the law already allows. It also says no one can sue to enforce it.
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