"OMB Director Russ Vought emphasized that agencies must report every non-commercial contract award from April 2025 through September 2025, particularly those exceeding $10 million, to justify their acquisitions."
"During the government's 2024 fiscal year, more than two-thirds of total contract spend was for non-commercial products and services, highlighting a significant reliance on non-commercial offerings."
"The new consultation process mandates that the agency's chief acquisition officer must approve requests for non-commercial contracts, ensuring political oversight before engaging with OMB."
The Office of Management and Budget requires agencies to report non-commercial contract awards to align with President Trump's 2025 executive order. This order reinforces the Federal Acquisition Streamlining Act of 1994, which mandates a preference for commercial products. Agencies must report all non-commercial contracts exceeding $10 million and justify their choices. In fiscal year 2024, over two-thirds of contract spending was on non-commercial offerings, totaling $130 billion. A new consultation process requires political appointee approval for non-commercial purchases before engaging with OMB.
Read at Nextgov.com
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