Automation drives procurement, yet GSA cuts tech staff

OneGov Strategy Launch and Progress

The General Services Administration's OneGov Strategy, launched on April 29, 2025, positions GSA as the "one buyer" for federal IT, replacing fragmented negotiations where agencies paid different prices for identical products【The OneGov initiative aims to put GSA at the center of government IT purchasing】.

These deals are "designed for immediate use by agencies across the federal enterprise" and deliver negotiated discounts, stronger terms, and faster procurement pathways【See all current OneGov IT software deals】. By consolidating buying power, OneGov streamlines procurement, supports modernization goals, and creates a unified purchasing approach that begins with IT software and will expand into hardware and services【GSA OneGov Procurement Strategy: A Unified Buying Future】.

Workforce Cuts Hit GSA Technology Transformation Services

GSA's Technology Transformation Services (TTS) is cutting its technology workforce by 50% as the agency pushes to consolidate federal IT buying through OneGov. In a town-hall briefing obtained by FedScoop, TTS Director Thomas Shedd—a former Tesla employee—said all non-critical and non-statutorily required work would cease, leaving only functions deemed essential or mandated by law【GSA to reduce tech services arm by 50%, eliminate non-statutory work】.

FedScoop also reported that the agency is targeting staff reductions not only in TTS but across related units, specifically naming the Integrated Award Environment and the Office of Regulatory and Oversight Systems as areas slated for cuts【GSA tech arm faces more workforce cuts】. A separate NewsBreak article echoed Shedd's remarks, noting that the significant workforce reduction would eliminate all non-statutorily required activities within TTS【Similar workforce cuts were reported elsewhere】.

After an initial wave of reductions, the agency backed off plans for additional layoffs within its technology team following a court decision, according to a FedScoop update【GSA backs off planned layoffs within its technology team】. Nevertheless, the workforce continues to face a slow drip of reductions in force (RIFs), with sources telling FedScoop that the cuts are "nearly wiping out entire offices" within TTS【GSA continues slow drip of RIFs】. The tension is stark: GSA is centralizing purchasing authority while simultaneously shrinking the team that would oversee vendor performance and technical implementation.

FAR Overhaul Seeks to Enable OneGov Model

GSA is rewriting the Federal Acquisition Regulation (FAR) to enable the OneGov buying model, framing this as the "Revolutionary FAR Overhaul." Acquisition.GOV calls it the first-ever comprehensive overhaul of the FAR【Revolutionary FAR Overhaul | Acquisition.GOV】. The initiative is being led by the Office of Federal Procurement Policy (OFPP) and the Federal Acquisition Regulatory Council (FAR Council) under Executive Order 14275, Restoring Common Sense to Federal Procurement【the overhaul】. The FAR Council comprises OFPP, the Department of Defense, GSA, and NASA, reflecting the interagency nature of the reform【Federal Acquisition Regulation: Revolutionary Federal Acquisition ...】.

OMB has marked progress by announcing the first of three planned releases of proposed rules to implement the overhaul, signaling that the rulemaking process is now in the formal proposal stage【OMB Advances Revolutionary FAR Overhaul with Formal Publication of ...】. To support the changes, GSA has produced provision and clause matrices that detail the specific adjustments being considered as part of the Revolutionary FAR Overhaul【RFO-2025-12 Provision and clause matrices】. One concrete action already taken is Class Deviation RFO-2025-15, which approves a class deviation to FAR Part 15 for the purpose of implementing the FAR Council's model deviation to that part【Class Deviation RFO-2025-15】.

The scope of the undertaking is underscored by an analysis noting that the FAR currently contains nearly 3,000 directives, a volume that creates significant transaction costs for industry and complicates procurement【PDF Overhauling the Federal Acquisition Regulation】. As Jeff Koses of GSA observes, "cultural changes will determine the ultimate success of acquisition reform, not just regulatory ones," highlighting that the rulemaking push must be accompanied by shifts in how acquisition professionals work【GSA set to begin its rulemaking push for the FAR overhaul】.

Together, these steps constitute GSA's regulatory push to reshape the FAR so that it can underpin OneGov's goal of consolidating federal IT buying into a single vendor framework.

Defense Contractors Adapt to Unified Buying Model

OneGov's move to a single, GSA-managed vendor framework reshapes how defense-focused IT firms approach the federal marketplace. Rather than pursuing separate contracts with individual agencies, contractors must now position themselves to qualify for the consolidated agreements that GSA is rolling out under OneGov. This shift requires adjustments in several practical areas:

• Proposal and pricing structures – With a unified buyer, vendors must submit proposals that meet standardized technical and security requirements across multiple departments. Contractors may need to consolidate their pricing models, offering volume-based discounts or tiered service levels that align with GSA's overarching contract vehicles.
• Compliance and certification – The OneGov framework emphasizes adherence to a common set of acquisition rules, including the ongoing FAR overhaul. Defense IT suppliers will likely invest in updating their compliance programs to satisfy the new baseline standards that apply to all participating agencies, rather than maintaining separate agency-specific certifications.
• Team composition and bidding strategy – As the buyer pool narrows, firms may reallocate business-development resources toward capturing slots on the GSA-led vehicles. This could mean strengthening relationships with GSA's contracting officers, enhancing past-performance documentation relevant to a broader federal audience, and potentially forming joint ventures or subcontracting arrangements to meet the scale and scope expectations of the unified contracts.
• Market dynamics – The consolidation reduces the number of distinct procurement opportunities but increases the size of each opportunity. Defense IT contractors that previously relied on niche, agency-specific contracts may need to broaden their solution portfolios to appeal to a wider set of federal customers while still meeting defense-specific mission requirements.

DoD's recent hiring data illustrates the underlying demand for IT talent, showing 1,032 hires last month with top roles including Information Technology Management【DoD Job Board】. This figure reflects DoD's ongoing need for IT expertise, a need that contractors must now address through the OneGov channel rather than through disparate agency solicitations.

In sum, defense IT vendors are navigating a transition from a fragmented agency-by-agency sales approach to a strategy centered on meeting the specifications and scale of a single, GSA-administered buyer under OneGov. Success will hinge on aligning internal capabilities, compliance frameworks, and go-to-market tactics with the unified procurement model that GSA is implementing.

Future Outlook: Savings, Speed, and Risks

OneGov Strategy is positioned to reshape how the federal government acquires information technology by consolidating purchases under a single vendor framework. The approach could generate cost reductions by eliminating duplicate negotiations, leveraging volume-based pricing, and streamlining contract administration. By standardizing terms across agencies, the model may also accelerate the time it takes to move from requirement to award, potentially shortening procurement cycles that have historically stretched over many months.

At the same time, the shift raises several oversight concerns. Concentrating buying power in a limited set of vendors could diminish competitive pressure, making it harder to ensure that prices remain fair and that innovation continues to flow from a broad supplier base. Smaller and specialty IT firms may find it more difficult to access federal opportunities under a unified framework, which could reduce diversity in the contractor pool and limit the government's exposure to emerging technologies.

Oversight mechanisms will need to evolve to monitor compliance with the new FAR provisions that enable OneGov. Auditors and inspectors general may face challenges in tracking performance across a larger, more centralized contract portfolio, and there is a risk that lapses in contract management could go unnoticed without robust reporting requirements.

Finally, the internal workforce implications for GSA—particularly the ongoing reductions in its Technology Transformation Services—highlight a tension between the agency's role as a centralized buyer and its capacity to provide technical oversight. As GSA leans more heavily on external vendors to deliver IT solutions, maintaining sufficient in-house expertise to evaluate vendor performance, manage risk, and safeguard federal interests will be critical to realizing the promised savings and speed without compromising accountability【the earlier reduction】.