The Office of Management and Budget has issued a memorandum directing federal agencies to increase the acquisition of commercially available products and services in accordance with an executive order signed in April 2025.
OMB Director Russell Vought said Friday the memo outlines actions agencies must take to prioritize commercial solutions and strengthen oversight of non-commercial procurements.
Table of Contents
What Are the Reporting Requirements of the OMB Memo?
The memo requires agencies to submit a report to OMB by May 4, detailing non-commercial contracting activity. The report must exclude source selection-sensitive information and include the following elements:
Recent Non-Commercial Awards
- Total value and number of non-commercial contracts awarded between April 15, 2025, and Sept. 30, 2025, categorized by product service code
- A list of procurement instrument identifiers associated with those awards
- For contracts exceeding $10 million: description of the requirement, contract pricing type and total value; date of the next contract option; planned actions by the senior procurement executive, or SPE; explanation if a transition to a commercial solution is not planned
Near-Term Non-Commercial Acquisitions
- Total number of pre-award non-commercial actions in process as of March 31, 2026
- For actions exceeding $10 million: description of the requirement, planned contract type and cost estimate; planned actions by the SPE; justification for continuing with a non-commercial approach
Future Procurements
- Description of internal controls to ensure SPE review of planned non-commercial awards
Agencies must submit the report using a template available through the MAX platform.
What Does the Memo Say About Competition Advocates & Data?
The memo directs agencies to ensure the competition advocate role is held by an official at or above the head of the contracting activity or deputy SPE level and to submit that official’s name, title and contact information.
The document also states that the Office of Federal Procurement Policy will work with the Procurement Committee on E-Government and the General Services Administration to improve data collection and benchmarking for commercial acquisitions in the Federal Procurement Data System.
Optional Consultation With OMB
The memo states that agencies may request input from OMB before pursuing a non-commercial acquisition. Requests must be submitted by the SPE and include details such as the requirement description, market research findings, cost estimates and justification for not using a commercial solution.
Agencies are required to provide OMB at least 15 days to review consultation requests prior to issuing a solicitation.
Related Articles
The Defense Innovation Unit has announced the addition of five new leaders to its senior leadership team to support the delivery of commercial and nontraditional platforms to operational units and help address challenges facing the joint force. Department of War Chief Information Officer Kirsten Davies, a 2026 Wash100 honoree, is scheduled to deliver a keynote speech at the 2026 Digital Transformation Summit this Wednesday, April 22. Register now to hear Davies and other government leaders discuss emerging technologies and efforts to drive defense modernization. Owen West, a 2026 Wash100 Award recipient, officially assumed the role of director at DIU in
The Department of Health and Human Services has appointed Casey Mulligan as chief economist and chief regulatory officer. What Will Mulligan Oversee? Mulligan will advise HHS Secretary Robert Kennedy Jr. and senior leadership on efforts to reduce health care costs, with responsibilities spanning regulatory analysis, econometric modeling and evaluation of major federal health programs, HHS said Friday. Who Is Casey Mulligan? Mulligan brings experience from both academia and government. He previously served as chief economist at the White House Council of Economic Advisers during the first Trump administration, contributing economic insight on regulatory, healthcare and small business policy issues. Most
Maj. Gen. Christopher Niemi has been nominated to serve as the U.S. Air Force’s first chief modernization officer as part of a reorganization of the service’s Air Force Futures directorate, the Department of War said Wednesday. The new chief modernization officer appointment aligns with the Air Force’s efforts to leverage advanced technology to meet emerging needs. Register now for the Potomac Officers Club’s 2026 Air and Space Summit to learn about the service’s technology integration and other strategies to achieve air and space dominance. What Role Would Niemi Assume? If confirmed, Niemi would be promoted to lieutenant general and serve as