ALERT: OMB’s July 29, 2009 Guidance Memoranda Signal Significant Changes To Government Procurement Practices

    31 July 2009

    On July 29, 2009, the Office of Management and Budget (“OMB”) issued three documents focused on reforming the Federal Government’s procurement practices. The memoranda cover: (i) improving the effectiveness of agency acquisition practices and contract results; (ii) increasing accountability for contractor past performance; and (iii) managing the multi-sector workforce, including out-sourcing decisions. OMB’s guidance documents signal significant changes for government contractors, such as mandatory reductions in the amount of contracting dollars and the percentage of non-competitive and cost-reimburseable awards, establishment of a government-wide database collecting past performance information that goes as far as including instances of defective cost or pricing data and terminations for default and convenience, and increased scrutiny of government outsourcing decisions.