Introduction
The federal procurement landscape is undergoing a major shift in 2025. With Executive Order 14240 and OMB Memorandum M-25-31, the Biden administration is doubling down on consolidating procurement under the General Services Administration (GSA) to eliminate waste, reduce redundancy, and maximize taxpayer savings.
For IT vendors and solutions providers, this means a fundamental change in how the government buys technology. If your company sells—or plans to sell—to federal agencies, understanding these changes is critical to staying competitive.
In this blog, we will break down:
- The latest procurement consolidation policies and what they mean for vendors
- Why GSA Schedule contracts are more important than ever
- Three key strategies to adapt your go-to-market approach
- How to leverage partnerships if compliance and bidding become too complex
Why Procurement Consolidation? The Push for Efficiency
The federal government spends over $700 billion annually on contracts, yet much of that spending happens outside of GSA-managed vehicles.
The new directives aim to change that by:
- Eliminating duplicate contracts – Reducing redundant IT procurement vehicles
- Maximizing buying power – Leveraging bulk purchasing through GSA Schedules
- Streamlining procurement – Requiring agencies to use existing contracts unless exempt
Key Policies Driving the Change
- Executive Order 14240 (March 2025)
- Mandates consolidation of domestic procurement under GSA
- Focuses on reducing IT contract duplication
- Encourages use of Best-in-Class (BIC) contracts
- OMB Memorandum M-25-31 (July 2025)
- Directs agencies to use existing government-wide contracts (e.g., GSA MAS, CIO-SP4, OASIS+)
- Requires justification for any new contract awards outside GSA vehicles
- Supports the Revolutionary FAR Overhaul to enforce compliance
What This Means for IT Vendors and Solutions Providers
If your company sells IT products or services to the federal government, these changes will impact your sales strategy, bidding process, and contract management. Here is what you need to know:
1. GSA Schedule Contracts Are Now Essential
With procurement centralization, agencies will increasingly turn to GSA Multiple Award Schedule (MAS) contracts for IT purchases.
- New Market Entrants: If you are just breaking into federal sales, securing a GSA Schedule contract should be a top priority.
- Existing Vendors: If you do not have a GSA contract, you may lose opportunities to competitors who do.
Action Step:
- Work with a GSA Schedule consultant to fast-track your contract submission.
- Consider teaming agreements with established GSA contractors if getting your own schedule is not feasible yet.
2. Expect More Large, Bundled Procurements
Agencies will increasingly issue consolidated RFPs covering multiple IT needs under a single procurement.
- Small businesses may struggle to compete unless they partner with larger prime contractors.
- Specialized vendors must highlight their niche expertise to stand out in broader bids.
Action Step:
- Monitor SAM.gov and GSA eBuy for upcoming consolidated IT bids.
- Strengthen your differentiators (e.g., cybersecurity, cloud solutions, AI integration).
3. Compliance and Contract Management Will Be Critical
With stricter procurement rules, agencies will enforce mandatory use of GSA contracts unless waived.
- Vendors must ensure their GSA contracts are:
- Competitively priced (to remain attractive under category management)
- Compliant with FAR and GSAR updates
- Regularly updated with new products/services
Action Step:
- Invest in automated contract management tools to track modifications and compliance.
- Partner with a GSA Schedule expert to avoid audit risks.
Three Strategies to Adapt Your Federal Sales Approach
1. Secure a GSA Schedule Contract (Or Partner With One)
If you do not have a GSA MAS contract yet, now is the time to:
- Evaluate eligibility – Ensure your products/services fit GSA categories.
- Prepare a strong proposal – Pricing, past performance, and compliance matter.
- Consider a reseller model – If pursuing your own schedule is too complex, partner with a GSA-approved reseller.
2. Align with Best-in-Class (BIC) Contracts
Since agencies must prioritize BIC vehicles, ensure your offerings are available on:
- GSA MAS (IT Category)
- CIO-SP4 (For IT services)
- NASA SEWP (For enterprise IT solutions)
3. Prepare for More Competitive, Consolidated Bids
With fewer standalone contracts, vendors must:
- Strengthen teaming agreements – Collaborate with primes and subcontractors.
- Enhance bid responsiveness – Use AI-driven tools for faster, more accurate proposals.
- Focus on TCO (Total Cost of Ownership) – Agencies want long-term savings, not just low upfront costs.
Final Thoughts: Is Your Business Ready?
The federal procurement landscape in 2025 is shifting toward centralization, efficiency, and cost savings. For IT vendors,
This means:
- GSA Schedule contracts are non-negotiable for long-term success.
- Consolidated bidding will favor agile, well-prepared companies.
- Partnerships will be key for businesses that cannot manage compliance alone.
If your company needs help navigating these changes, consider working with a federal contracting advisor who specializes in GSA Schedules, proposal writing, and compliance.
Next Steps for IT Vendors
- Evaluate your GSA Schedule status – Do you have one? Is it up to date?
- Monitor FedBizOpps and eBuy – Stay ahead of upcoming IT procurements.
- Engage a federal sales consultant – Ensure your go-to-market strategy aligns with the new procurement reality.
By adapting now, your business can thrive in the era of federal procurement consolidation.
