The Office of Management and Budget (OMB) is requiring civilian federal agencies to submit monthly reports on newly approved IT contracts beginning in May, according to a Tuesday memo signed by OMB Director Russell Vought.
The directive instructs agency chief information officers (CIOs) to provide OMB with details on all IT-related contracts and agreements approved by the CIO or their delegate that “facilitate interaction between the public and the federal government through digital services.”
Agencies must file those reports by the 10th of each month, with the requirement set to sunset in October 2026. The Pentagon and smaller agencies are exempt from the requirement.
According to the memo, the new centralized view of government IT will “enable agencies to better identify waste, fraud, and abuse, and ensure that IT investments are strategically aligned across the Executive Branch.”
Federal CIO Greg Barbaccia said that the memo ultimately aims to evaluate the quality of IT purchased, whether the prices being negotiated are fair, and identify duplicative solutions.
“The way the federal government buys information technology can be surprisingly complicated, especially when the right people aren’t talking to each other, or when they’re not at the table to begin with,” Barbaccia said in a video posted to X.
Through OMB’s centralized view of the government’s IT procurements, Barbaccia explained that “this bird’s eye view will help us identify shared use cases, prevent duplication, and streamline purchases so we only buy what we actually use.”
Beyond reporting requirements, the memo directs agencies to expand data collection from contractors. Effective immediately, agency CIOs must request that current vendors provide information on product and service utilization rates and pricing.
OMB also requires agencies to include provisions in future IT contracts mandating that vendors disclose pricing and utilization data without restricting how that information is shared across agencies. All that information should be shared with OMB and the General Services Administration (GSA).
Breaking down siloed procurement data will reduce time and cost burdens for both the federal government and industry partners, according to OMB.
“No more one-off buys, no more charging agencies different prices for the same tools, banking on the fact that they won’t or can’t find out. It’s time to put all the cards on the table,” Barbaccia said.
GSA will provide best practices, including sample contract language and templates as needed, OMB said.