UNDERSTANDING THE IMPACT OF THE NEW EXECUTIVE ORDER ON FEDERAL PROCUREMENT

On March 20, 2025, President Donald J. Trump signed an executive order titled “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement.” This significant policy shift aims to centralize federal procurement for common goods and services under the General Services Administration (GSA). As a key player in the Federal market, Vertosoft is committed to helping our suppliers understand and navigate these changes. Here’s a summary of the executive order and its potential impact on the Federal market.

Key Highlights of the Executive Order

The executive order mandates that the GSA will now oversee the procurement of common goods and services across federal agencies. This move is designed to eliminate waste, reduce duplication, and enable agencies to focus on their core missions

Centralized Procurement with GSA

GSA will become the primary entity responsible for procuring common goods and services for federal agencies. This centralization aims to streamline procurement processes and achieve cost savings. This centralization may lead to a reconsideration of existing programs like NASA’s SEWP and NITAAC’s CIO-SP, impacting how agencies procure cloud and IT solutions.

What does this mean for our suppliers?

For Vertosoft suppliers, this could provide an advantage given that many of our supplier’s products and services are already available on our GSA MAS schedule. It will also be crucial to explore which cloud products and services could be added to our GSA Cloud SIN to maximize opportunities arising from this shift.

Opportunity for Federal Enterprise License Agreements

Consolidation of contract purchasing might drive a move towards broader Federal enterprise license agreements. These agreements could come with deeper discounts and greater flexibility to transfer licenses across the Federal government.

How to capitalize on this?

Suppliers should prepare to negotiate these broader agreements, offering competitive pricing and flexible license models to meet the Federal government’s needs. This could create substantial opportunities for those ready to adapt.

Modernizing the FedRAMP Authorization Process

Speculation surrounds an announcement expected this week to modernize the FedRAMP authorization process, potentially reducing government involvement and increasing the role of 3PAOs. This could remove the need for an Agency sponsor and streamline the process for suppliers seeking FedRAMP certification.

What should suppliers do?

Stay informed about the latest developments in the FedRAMP authorization process. Suppliers should be ready to adapt to new requirements and engage with 3PAOs to ensure compliance and certification.

The executive order represents a significant change in Federal procurement practices. By staying proactive and adapting to the new procurement landscape, suppliers can position themselves to take advantage of broader agreements and streamlined processes. Vertosoft is committed to working closely with our suppliers to navigate these changes and capitalize on new opportunities.

Stay tuned for more updates and guidance as we continue to monitor the implementation of this executive order.

Please meet with your Vertosoft Account Manager to review your products and services that are currently listed on our GSA schedule and determine if any updates are needed.  If you have any questions or need further information, please do not hesitate to contact me directly. Together, we can navigate this new landscape and continue to deliver exceptional value to the Federal market.

Thank you for your continued partnership.

Best regards,

Jay Colavita

President and Founder, Vertosoft LLC