OMB Commercial Buying Push

The White House budget office is making agencies explain, in writing, why they are not buying commercial products before they pursue custom contracts. (whitehouse.gov) In a memo dated April 17, 2026, the Office of Management and Budget told executive agencies to send reports by May 4 covering non-commercial contracts awarded after April 15, 2025, non-commercial buys still in process, and the internal controls they use to review those decisions. (whitehouse.gov) For larger cases, the bar is higher. Government Executive reported that agencies must justify non-commercial awards over $10 million with details including contract size and duration, market research, price analysis, whether the work will be competed, and approval by senior acquisition officials. (govexec.com) A commercial product, in plain terms, is something the private market already sells, even if it needs some modification for government use. Federal policy has long told agencies to buy those offerings “to the maximum extent practicable” instead of building government-unique versions from scratch. (acquisition.gov; govinfo.gov) That preference is not new. The Federal Acquisition Streamlining Act and Federal Acquisition Regulation Part 12 already steer buyers toward commercial items, and current market-research rules say agencies must check first whether an existing commercial product, a modified commercial product, or a governmentwide contract can meet the need. (acquisition.gov; acquisition.gov) What changed is the enforcement. President Donald Trump’s Executive Order 14271, signed on April 15, 2025, ordered agencies to review open notices for non-commercial products or services and submit applications for approval when they wanted to keep going down that path. (whitehouse.gov; govinfo.gov) OMB says the government still leans heavily on non-commercial buying. In fiscal 2024, more than two-thirds of total federal contract spending reported in the Federal Procurement Data System was for non-commercial products and services, including more than $130 billion for common services such as professional support, information technology and telecom, and facilities operations. (whitehouse.gov) The memo also ties that spending pattern to contract risk. OMB said much of the $130 billion in common-service buying used cost-reimbursement contracts with undefined deliverables, a structure the office said increases the government’s exposure to loss. (whitehouse.gov) Agencies now have to name a “competition advocate” to help push commercial buying and give senior leadership visibility into exceptions, according to coverage of the memo by Federal News Network and other procurement outlets. (federalnewsnetwork.com; meritalk.com) For contractors, the shift favors firms that can show an agency how an existing tool fits a mission quickly, with documented pricing and market evidence. For agencies, the immediate deadline is May 4, when OMB gets its first broad accounting of who is still choosing custom work over commercial options. (govexec.com; whitehouse.gov)