How the Federal Government buys information technology (IT) 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. Without collaboration and ongoing oversight, we see overspending on products that aren’t used, the same software bought multiple times at different prices, service agreements that don’t align with agency missions, and – ultimately – wasted taxpayer dollars.
Yesterday, the Office of Management and Budget (OMB) issued binding government-wide policy to stop that waste. M-26-10, (opens in a new tab) Reinforcing Transparency, Accountability, and Oversight of Federal Technology, ensures that the Government’s IT purchases are in the best interest of the American taxpayer.
M-26-10 makes sure that the people who know technology best – Chief Information Officers (CIOs) – have a say in how their agency buys and uses it. It’s not just a best practice or common sense – it’s the law (opens in a new tab)! By reinforcing this decision-making authority, the U.S. Government can eradicate shadow IT.
The new policy also brings technology and acquisition teams closer together to support the Administration’s effort, led by the General Services Administration, to consolidate procurement (opens in a new tab). It requires future solicitations and contracts to disclose utilization and pricing information to the Government, without limiting how that information may be shared across agencies. This transparency will strengthen the Government’s ability to consolidate acquisitions, negotiate better prices with vendors, and reduce unnecessary or duplicative spending.
“CIOs are responsible for interrogating every IT purchase, and M-26-10 reinvigorates their legal obligation while adding another layer of transparency with OMB, through my Office of the Federal CIO and the Office of Federal Procurement Policy.” said Greg Barbaccia, Federal CIO. “With enterprise-wide transparency, we can harness the buying power of Government to acquire the right tools at fair prices, meaning we can deliver faster and serve better – all while saving hard-earned taxpayer money.”
“Acquisition and technology teams must come together to make informed procurement decisions for the American taxpayer,” said Dr. Kevin Rhodes, Administrator for OMB’s Office of Federal Procurement Policy. “We make the best purchases when we bring the right people to the table, and this policy emphasizes CAOs and CIOs working together as strategic partners. If we’re not making smart IT buys at the outset, we’re already behind.”
Hear from one agency who’s particularly excited about recommitting to the best practices outlined in M-26-10.
“This policy gives me the backing I need to have a voice - not just a seat - at the table when it comes to IT acquisitions” said Pavan Pidugu, CIO at the U.S. Department of Transportation. “It holds us accountable – CIOs and CAOs alike – for operating as a unified force, making smarter procurement decisions that deliver better outcomes for our mission and the American people.”
Read the full policy on whitehouse.gov (opens in a new tab).
Watch the Federal CIO’s remarks on X (opens in a new tab).
