Major GSA Updates: Workforce Reductions, Contract Changes & Policy Shifts

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 Here is the most up to date information on GSA Schedule policy changes, new awards, modifications of existing schedules, and the impact on current schedule holders. 

GSA Workforce Reductions:

  • The GSA is currently undergoing significant workforce reductions, including voluntary early retirements, resignations, and planned reductions in force (RIF). GSA is implementing a 50% reduction in both budget/staff. Overall staffing levels are expected to decrease substantially.
  • Due to these reductions, GSA office consolidations and closures are also anticipated, potentially affecting contract administration timelines.

GSA Schedule Minimum Sales Requirements:

  • GSA has recently updated minimum sales requirements for Multiple Award Schedules (MAS). Contractors must now achieve $100,000 in sales within the first five years and $125,000 in each subsequent five-year period to maintain their schedule contracts.
  • GSA intends to resume enforcement of these minimum sales thresholds, which may lead to the cancellation of schedule contracts that fail to meet these benchmarks.

Impact on Task Orders and Contracts:

  • There has been a temporary halt on certain new GSA-funded contract obligations, including task orders and modifications, as the agency undergoes internal policy reviews.
  • Existing funded task orders are expected to continue, although delays in processing new task orders, renewals, and modifications may occur.
  • If you expected a new award, stay in touch with the contracting officer and have contingency plans; ensure any ongoing work is solid because options aren’t guaranteed to be exercised during the freeze.

Policy Changes in Contract Requirements:

  • Recent policy shifts have paused the enforcement of diversity, equity, and inclusion (DEI) related contract clauses.
  • Contractors with DEI or related clauses in current contracts may experience changes or removals of these obligations.
  • If your contract had stipulations for, say, diversity reporting or climate-related obligations, clarify with your contracting officer if those are still needed as these will most likely all be removed in coming weeks if they haven’t been already.

Changes at the Small Business Administration (SBA):

  • The SBA is undergoing internal reviews and potential staffing changes aimed at streamlining operations and enhancing efficiency.
  • “America First” Procurement Policies: Expect a stronger emphasis on Made-in-USA and domestic supply requirements. SBA has refocused an office toward manufacturing and trade to boost American production​. While not a specific GSA rule change, the overall procurement strategy will likely favor contractors that manufacture in the U.S. or can bolster domestic supply chains. Highlight any American-made aspects of your products/services. Ensure compliance with Buy American Act and related clauses, there may be stricter scrutiny there.
  • Loan programs and assistance guidelines may experience tighter oversight and increased scrutiny to mitigate risks and reduce fraud.

Consulting & Contract Services Cuts (possible opportunity for smaller consulting firms):

  • GSA leadership is pushing agencies to terminate contracts with major consulting firms (Deloitte, Accenture, etc.) to cut “non-essential” spending​.
  • GSA’s internal 18F tech consulting group was also shut down​. The 18F group was a digital consulting and technology unit within the GSA. It primarily helped other federal agencies develop and modernize their digital services, technology infrastructure, and software solutions.
  • This could signal opportunities for smaller consultancies if agencies still need that work but can’t use the big firms, be ready to step in with leaner, cost-effective solutions. Conversely, if you are a subcontractor or partner to those big integrators, be aware projects might be canceled or re-competed. All contractors should expect agencies to scrutinize contract costs and possibly attempt to trim scope or pricing on existing agreements.

Bottom line: We recommend staying vigilant, maintaining open communication with contracting officers, and closely monitoring announcements from GSA, SBA, and related agencies. Should you have specific concerns or questions about how these developments might directly affect your contracts or business activities, please do not hesitate to reach out.

Scott Davidson heads Centre’s GSA Schedule Practice Group.  He can be contacted at sdavidson@centrelawgroup.com


Source(s):

Major GSA Updates: Workforce Reductions, Contract Changes & Policy Shifts. (2025, March 11). Centre Law & Consulting. https://centrelawgroup.com/blog/all-current-gsa-changes/?utm_campaign=Training%202023&utm_medium=email&_hsenc=p2ANqtz-8DD4T4wONHaJVjZNcUh5SPLuNvbuNIrSKI0gT8nZ205ioYWFWe4r1NTUSGmdI-RaEfPxfUbLMYOHm-g0sh_YlUNMvdwzMmaslghCaETewnjnGb-jE&_hsmi=351220361&utm_content=351220361&utm_source=hs_email

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