Federal agencies have until May 4 to report details on non-commercial contracts to the Office of Management and Budget (OMB), under new guidance aimed at increasing procurement of commercial products and solutions.
In an April 17 memo to department and agency heads, OMB Director Russell Vought directed agencies to submit data on non-commercial awards made between April 15 and Sept. 30, 2025.
The requirement stems from an April 2025 executive order that directs the government to prioritize acquisitions of commercially available products and services. The order’s fact sheet specifically singles out potential savings for the government when purchasing IT products and services.
“To stop the wasteful expenditure of taxpayer dollars on costly custom products where a suitable or superior commercial solution could meet the government’s needs, the order required agencies to conduct a review of all open agency solicitations, pre-solicitation notices, solicitation notices, award notices, and sole-source notices issued on or after April 15, 2025, where noncommercial products or services are contemplated,” Vought wrote in the memo.
The memo instructs agencies to provide the total number and value of non-commercial contracts awarded during that period, along with the procurement instrument identifier (PIID) for each award.
Contracts exceeding $10 million must include more detailed information, such as the type of contract pricing and total value, including base and all options. Agencies must also provide an explanation if they do not plan to shift to a commercial solution at the next contract option. These explanations must refer “to market research and price analysis that support the conclusion to remain with the non-commercial solution,” according to the memo.
For future procurements, OMB said agencies must outline the internal mechanisms put in place to ensure that the agency’s senior procurement executive reviews all planned non-commercial awards.
The memo also notes that agencies contemplating the solicitation of a non-commercial product or service may seek the input of OMB, including the policy input of the Office of Federal Procurement Policy. Agencies can submit a request to consult with OMB via MBX.OMB.OFPPv2@OMB.eop.gov.
“Agencies should act expeditiously to implement these important stewardship actions,” Vought concluded.