The Crown Commercial Service will merge with central commercial teams in the Cabinet Office to form a new agency.
On 1 April, the CCS and several Cabinet Office commercial teams, which are currently operating under the government commercial function, will join together become the Government Commercial Agency.
The restructure aims to combine expertise and scale to achieve better outcomes for public sector customers, suppliers and citizens.
The GCA will operate as a self-sustaining trading fund and be led by Sam Ulyatt, with oversight from government chief commercial officer Andrew Forzani.
Announcing the plans, Forzani said the GCA would “centralise commercial activity, set best practices, and promote innovation”.
“I am tremendously excited about working with Sam Ulyatt to build GCA to ensure it becomes the centre for commercial expertise and delivery across the public sector,” he added.
Ulyatt said: “We are confident that this enhanced commercial agency, working alongside public sector colleagues, will harness the significant expertise across government and achieve greater value for the nation.”