- American government agencies must buy it centrally under a new order
- 6,000 contracts have already been terminated or made cheaper
- The objective is to reduce waste and save taxpayers’ dollars
President Donald Trump has signed an executive decree to centralize federal computer purchases under the General Services Administration (GSA), a 76 -year -old agency that oversees purchases.
This decision means that the management and budget office (OMB) must adopt government -scale acquisition contracts through GSA.
The order, signed on March 20, 2025, bears the name of “waste elimination and saves taxpayers’ dollars by consolidating supply”.
The American government to centralize its expenses
The White House explained that the US government spent “about $ 490 billion a year on federal contracts for common goods and services” and called for the most efficient and effective purchase of these goods and services with the US taxpayer dollar.
In addition to being smarter with the money he spends, the Trump administration also hopes that the decision will help eliminate waste and duplication.
During the two months preceding the signing of the decree, the US government had already terminated or saved more than 6,000 contracts.
The information sheet published separately explains that the agencies have purchased licenses independently for productivity software such as Microsoft 365, leading to price inconsistencies and other challenges.
By carrying all this under the vigilant eye of the General Services Administration, Trump hopes to save $ 100 million a year.
A saving of $ 150 million in fiscal year 24 was also noted with regard to the centralization of identity protection services to prevent and respond to data violations.
By switching to equipment, around $ 1 billion a year is spent to buy computers for staff, but only $ 6 billion experienced GSA in a decade, highlighting the extent of potential savings. NASA, NIH, army and GSA have each set up volume purchase agreements with GSA, but other agencies have not done so.
Overall, the Ministry of Government Effectiveness (DOGE) has identified “more than $ 100 billion in estimated savings” in various fields of ID, including hardware, software and regulatory savings.
