The General Services Administration (GSA) has suspended the execution of any new GSA-funded obligations – including new awards, task and delivery orders, modifications, and options – until further notice.
GSA Acting Administrator Stephen Ehikian announced the pause in a Jan. 24 memo sent to the GSA acquisition workforce, the GSA leasing workforce, and the heads of service and staff offices.
“This short-term pause will permit the new leadership to understand key acquisition actions, commitments, and approaches and help direct any needed course corrections,” Ehikian wrote. “All other obligations and/or award actions will require review and approval of the acting administrator or designee before the acquisition action can be awarded.”
However, Ehikian said there are nine exceptions to the acquisition freeze. These include actions to support the president, vice president, and the Secret Service in ensuring security, as well as actions in support of the Federal Emergency Management Agency.
Other exceptions include emergency and urgent obligations below $50,000, assisted acquisitions other than those for advisory and assistance services, and reimbursable work authorizations below $50,000.
New awards for offers, modifications, and options under the Federal Supply Schedule “other than in support of Diversity, Equity and Inclusion” are also exempt, as are vehicles for the Federal fleet other than zero emission vehicles. Additionally, contract actions in support of GSA Global Supply and client support centers are exempt from the freeze.
The final exemption includes “all options, bridges, and extensions (to include AbilityOne follow-on contracts as these are considered extensions of service) for services keeping buildings operational e.g, maintenance, custodial and landscaping/snow services.”
The contracting freeze comes as the Trump administration attempted to freeze all Federal grants, loans, and other financial assistance programs. However, on Wednesday the White House rescinded the order after it sparked legal challenges and confusion.
