Government operations
Ensuring Commercial, Cost-effective Solutions In Federal Contracts
Federal agencies must favor commercial products and services over custom-built alternatives.
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The order aims to reduce taxpayer costs and procurement delays while expanding federal use of private-sector products and innovation.
What the order does
- Requires agencies to buy commercially available or adaptable products and services whenever practicable.
- Orders contracting officers to review open non-commercial procurements within 60 days and justify them with market research and price analysis.
- Requires senior procurement executives to assess those justifications within 30 days and recommend commercial alternatives when sufficient.
- Requires written approval or denial before agencies solicit future non-commercial products or services.
- Directs agencies to report compliance and implementation progress to the Office of Management and Budget within 120 days and annually thereafter.
- Allows the Office of Management and Budget, consulting with the Office of Federal Procurement Policy, to evaluate proposed non-commercial purchases.
Who it affects
- Executive departments, military departments, independent federal establishments, and wholly owned Government corporations.
- Federal contracting officers and senior procurement executives.
- Businesses offering commercial products and services to the Federal Government.