GSA Moves to Restructure Multiple Award Schedule

The General Services Administration (GSA) announced plans this week to “rightsize”  its flagship Federal Acquisition Service’s (FAS) Multiple Award Schedule (MAS) program.

The planned restructuring follows suit with other Trump Administration and Department of Government Efficiency (DOGE) efforts to streamline and improve government management and operations and follows on the heels of  Executive Order 14240  “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement.” 

“FAS takes seriously its responsibility to the American taxpayer, and rightsizing the MAS Program is a significant opportunity for us to prioritize value and fiscal responsibility in contracting,” Gruenbaum said. “With these actions, we can put our agency resources where they get the most impactful return on investment — and that means the goods and services that are most in demand by federal customers.

By refocusing the program on the items and services the government is actually buying, we can help our industry partners maximize their time and efforts while providing the best pricing possible for these mission-critical needs,” Gruenbaum said.

The announcement prioritized the following actions: 

• Allowing MAS contracts not meeting the sales thresholds in FSS Clause I-FSS-639, Contract Sales Criteria ($25K annually for the first two years, then $25K annually for every following year), to expire.
• Addressing MAS contractor non-compliance, including performance concerns, which will help ensure that only productive and compliant contracts remain in the program.
• Simplifying processes, eliminating inefficiencies, and ensuring proper alignment of management and oversight within the program — making it more effective and user-friendly for both contractors and government agencies.
• Eliminating items with insufficient market demand or where administrative costs outweigh procurement benefits, making them unsuitable for the MAS program.
• Reducing redundancies with other procurement channels across government.

Looking at the current MAS landscape provides some insight into the scope of possible changes.

GSA MAS Historical and Current Performance

As of March 25, GSA reported 12,062 MAS contractors, 85% of whom are small businesses. These firms provide goods and services under 12,498 active contracts with 84% held by small firms. As mentioned above, contractors must maintain minimum thresholds over the first 10 years, adhere to a compliance checklist and maintain performance during the contract lifecycle to remain eligible to for additional awards.

GSA data for contracts that began between 2015 and 2023, shows that 13,816 contracts are not meeting the minimum annual sales threshold of $25K. Ninety-one percent (2,962) are held by small businesses. The data includes sales under the past year, the last full contract year and partial years under two years. (Deltek's analysis of this period is based on the five-year base period and 5-year option for MAS contracts. GSA data does not include the “meeting minimum sales requirement” metric for contracts with a start date less than two years ago.) 

During this 10-year period, MAS buyers spent more on IT products and services and Professional Services than any other category during this time, accounting $35.7B (69%) of MAS spending. Of that, $11.8B (33%) was awarded to small businesses. Conversely, less was spent on Equipment Related Services ($8.5K), Medical Goods and Services ($43M) and Electronic & Communication Equipment ($23M). The Miscellaneous Category, which includes items like apparel, trophies, flags, musical instruments, etc., had $143M in sales. Understanding what GSA purchased through under these categories can inform vendors about which products and services could remain on the new contract and which could be eliminated.

 

 

 

 

 

 

 

 

 

In FY 2024, purchases through the MAS reached nearly $62B through 13,099 contracts. Although small businesses received more contract awards than other businesses, the combined value of those awards was significantly lower. Service Disabled, Veteran-Owned Small Businesses (SDVOSB) received the most, almost as much as 8(a), Woman Owned Small Businesses (WOSB) and HUBZone firms combined. It will be interesting to see how the revised SBA goals under the Trump Administration impacts the distribution within the new MAS structure.

 

 

 

 

 

 

 

 

 

 

The top 10 vendors below received 25% of MAS obligations during FY 2024 providing Information Technology, Professional Services, Human Capital, Transportation and Logistics, and Travel and Lodging services categories under 31 separate NAICS Codes. The top 10 SB vendors represent 3% of total contract obligations for IT, Transportation and Logistics and Travel and Lodging Services. Contractors concerned about the viability of their MAS contract could look to potential teaming opportunities with these vendors. 

 

 

 

 

 

 

 

 

 

DOGE Impacts on MAS Contracts

As of March 28, 2025, 3,094 GSA MAS contracts had been terminated, representing 36% of all contract terminations. Total SB cancellations reached 1,462, with MAS contracts accounting for 220. Consulting Services (NAICS 5416) contracts had 322 cancellations (10%, MAS). IT Services, saw 216 terminations and Professional Services, which includes Diversity, Equity and Inclusion training contracts, advertising, and subscriptions had 203 terminations all of which align with the predominant types of EO related closures. The review of contracts beginning between 2015 and 2023 shows 76 contract pending termination, with 18 held by small businesses. 

 

 

 

 

 

 

 

 

 

 

What Can Contractors Anticipate?

Continued staff reductions, agency reorganizations and procurement changes are the new norm in the federal contracting market. However, it’s not all doom and gloom. There are benefits to contractors who remain alert to the ongoing Trump Administration changes and can evolve to meet the restructured needs.

Consolidations/Terminations/Expirations: As the DOGE continues reducing the size of federal agencies, small businesses, especially those newer to federal contracting, may bear the brunt of changes from terminations and expirations of underperforming contract. Contract consolidations to duplicative or redundant requirement may narrow the number of procurement opportunities and strengthen firms’ chances for an award.

Communication: Difficulties maintaining communication with procurement officers following the large government staff reductions and relocations are one of the hurdles contractors are facing. Relationships must be established with staff members who may not know the contract or contractor history. Forging relationships with new acquisition officials is critical moving forward. Capitalize on opportunities to marketing high-demand products and services to possibly inform future decisions. Firms with diversified portfolios meeting the remaining requirements when the dust settles will enhance their competitive positions.

Procurement: Delayed or cancelled recompetes, planned procurements and exercising contract options and revised scopes of work are all possible, even expected. But delays offer opportunities to find out what products and services are at risk for elimination, and which are more likely to be highly sought after. Extended procurement timelines also provide additional time for increased communication with contracting offices, developing partnerships with other contractors and proposal preparation.

Artificial Intelligence/Technology Changes: GSA recently proposed Artificial Intelligence (AI) capabilities with bot chat and application programming interface (API) functions and tools to expedite searches and generate code. While these could replace services provided under the MAS contracts, they also create new opportunities for contractors embedded in AI technology. The planned restructure will require the GSA to access and process data from multiple agencies using their own networks, platforms, programs and applications. The need to merge technologies and modernize aging infrastructure can create opportunities for savvy vendors customize their innovative AI technologies to meet these needs.

Conclusions:

Contractors must remain vigilant to the dynamic contracting landscape and related Administration changes. Consistently performing, adhering to compliance standards, maintaining open communication, and staying agile in delivering high-demand products and services, firms can not only survive, but thrive in this ever-changing environment.

John Slye provides an overview of the Executive Order, and Christine Fritsch explores the impact across the major IT GWACS. For more resources and analysis on the Trump Administration transition, check out GovWin’s First 100 Days Resource Center.