§501. Services for executive agencies

(a) Authority of Administrator of General Services.-

(1) In general.-The Administrator of General Services shall take action under this subchapter for an executive agency-

(A) to the extent that the Administrator of General Services determines that the action is advantageous to the Federal Government in terms of economy, efficiency, or service; and

(B) with due regard to the program activities of the agency.

(2) Exemption for defense.-The Secretary of Defense may exempt the Department of Defense from an action taken by the Administrator of General Services under this subchapter, unless the President directs otherwise, whenever the Secretary determines that an exemption is in the best interests of national security.

(b) Procurement and Supply.-

(1) Functions.-

(A) In general.-The Administrator of General Services shall procure and supply personal property and nonpersonal services for executive agencies to use in the proper discharge of their responsibilities, and perform functions related to procurement and supply including contracting, inspection, storage, issue, property identification and classification, transportation and traffic management, management of public utility services, and repairing and converting.

(B) Public utility contracts.-A contract for public utility services may be made for a period of not more than 10 years.

(2) Policies and methods.-

(A) In general.-The Administrator of General Services shall prescribe policies and methods for executive agencies regarding the procurement and supply of personal property and nonpersonal services and related functions.

(B) Controlling regulation.-Policies and methods prescribed by the Administrator of General Services under this paragraph are subject to regulations prescribed by the Administrator for Federal Procurement Policy under division B (except sections 1704 and 2303) of subtitle I of title 41.

(c) Representation.-(1) For transportation and other public utility services used by executive agencies, the Administrator of General Services shall represent the agencies-

(A) in negotiations with carriers and other public utilities; and

(B) in proceedings involving carriers or other public utilities before federal and state regulatory bodies.

(2) Prior to representing any installation of the Department of Defense in any proceeding under this subsection, the Administrator or any persons or entities acting on behalf of the Administrator shall-

(A) notify the senior mission commander of the installation; and

(B) solicit and represent the interests of the installation as determined by the installation's senior mission commander.

(d) Facilities.-The Administrator of General Services shall operate, for executive agencies, warehouses, supply centers, repair shops, fuel yards, and other similar facilities. After consultation with the executive agencies affected, the Administrator of General Services shall consolidate, take over, or arrange for executive agencies to operate the facilities.

( Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1079 ; Pub. L. 111–350, §5(l)(6), Jan. 4, 2011, 124 Stat. 3851 ; Pub. L. 115–232, div. B, title XXVIII, §2826, Aug. 13, 2018, 132 Stat. 2270 .)

Historical and Revision Notes

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
501(a)	40:481(a) (words before cl. (1), last proviso).	June 30, 1949, ch. 288, title II, §201(a), 63 Stat. 383 ; Pub. L. 93–400, §15(1), Aug. 30, 1974, 88 Stat. 800 ; Pub. L. 96–83, §10(a), Oct. 10, 1979, 93 Stat. 652 ; Pub. L. 98–191, §§8(d)(1), 9(a)(2), Dec. 1, 1983, 97 Stat. 1331 .
501(b)	40:481(a)(1), (3).
501(c)	40:481(a)(4).
501(d)	40:481(a)(2).

In subsection (a)(2), the words "from time to time" are omitted as unnecessary. The words "Department of Defense" are substituted for "National Military Establishment" in section 201(a) (last proviso) of the Federal Property and Administrative Services Act of 1949, because the Department of Defense was deemed to succeed the National Military Establishment under section 12(a) and (g) of the National Security Act Amendments of 1949 (ch. 412, 63 Stat. 591). The words "or which may be taken" are omitted as unnecessary.

In subsection (b)(2)(B), the words "subject to regulations" are substituted for "subject to regulations and regulations" in section 201(a)(1) of the Federal Property and Administrative Services Act of 1949 to correct an error resulting from an inconsistency between section 8(d)(1) and section 9(a)(2) of the Office of Federal Procurement Policy Act Amendments of 1983 (Public Law 98–191, 97 Stat. 1331).

Editorial Notes

Amendments

2018-Subsec. (c). Pub. L. 115–232 designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), and added par. (2).

2011-Subsec. (b)(2)(B). Pub. L. 111–350 substituted "division B (except sections 1704 and 2303) of subtitle I of title 41" for "the Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.)".

Executive Documents

Ex. Ord. No. 14240. Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement

Ex. Ord. No. 14240, Mar. 20, 2025, 90 F.R. 13671, provided:

Section 1. Policy. The Federal Government spends approximately $490 billion per year on Federal contracts for common goods and services-the types of goods and services purchased by nearly every executive department and agency (agencies)-making it the largest buyer of goods and services in the world. As a matter of sound management, these standardized procurement functions should be carried out in the most efficient and effective manner possible for the American taxpayer.

The General Services Administration was established in 1949 through the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., to provide "an economical and efficient system" for the core procurement services for agencies (40 U.S.C. 101). It is time to return the General Services Administration to its original purpose, rather than continuing to have multiple agencies and agency subcomponents separately carry out these same functions in an uncoordinated and less economical fashion.

Consolidating domestic Federal procurement in the General Services Administration-the agency designed to conduct procurement-will eliminate waste and duplication, while enabling agencies to focus on their core mission of delivering the best possible services for the American people.

Sec. 2. Definitions. For the purposes of this order:

(a) "Administrator" means the Administrator of General Services.

(b) "Agency" has the meaning given to it in section 3502 of title 44, United States Code, except that such term does not include the Executive Office of the President or any components thereof.

(c) "Agency head" means the highest-ranking official of an agency, such as the Secretary, Administrator, Chairman, or Director.

(d) "Common goods and services" means the common Government-wide categories defined by the Category Management Leadership Council led by the Office of Management and Budget (OMB).

(e) "Indefinite delivery contract vehicle" means an agreement through which an agency can order goods and services over a defined period without setting forth quantities or a delivery schedule up front.

Sec. 3. Procurement Consolidation. (a) Within 60 days of the date of this order [Mar. 20, 2025], agency heads shall, in consultation with the agency's senior procurement officials, submit to the Administrator proposals, pursuant to 40 U.S.C. 101, 40 U.S.C. 501, or other relevant authorities, to have the General Services Administration conduct domestic procurement with respect to common goods and services for the agency, where permitted by law.

(b) Within 90 days of the date of this order, the Administrator shall submit a comprehensive plan to the Director of OMB for the General Services Administration to procure common goods and services across the domestic components of the Government, where permitted by law.

(c) Within 30 days of the date of this order, pursuant to the authority in 40 U.S.C. 11302(e), the Director of OMB shall designate the Administrator as the executive agent for all Government-wide acquisition contracts for information technology. The Administrator, in consultation with the Director of OMB, shall defer or decline the executive agent designation for Government-wide acquisition contracts for information technology when necessary to ensure continuity of service or as otherwise appropriate. The Administrator shall further, on an ongoing basis and consistent with applicable law, rationalize Government-wide indefinite delivery contract vehicles for information technology for agencies across the Government, including as part of identifying and eliminating contract duplication, redundancy, and other inefficiencies.

(d) Within 14 days of the date of this order, the Director of OMB shall issue a memorandum to agencies implementing subsection (c) of this section.

Sec. 4. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Donald J. Trump.