OMB contracting guidance expected to be released this week

Contracting guidance that the Office of Management and Budget is developing likely will be released within the next few days, sources told Government Executive on Monday.

The Senate's contracting oversight subcommittee is holding a hearing on Wednesday to review the Obama administration's strategy for reforming government contracting. A subcommittee spokeswoman said members expect the report to be released in advance of the hearing, and an OMB official confirmed on background that the guidance will be released soon.

"Obviously, the subcommittee has been eagerly awaiting this report, so they will be anxious to talk with OMB's [Deputy Director for Management] Jeffrey Zients and give him their feedback on the administration's plan, including any critiques they may have," the spokeswoman said.

In March, Obama directed OMB to work with agencies to reform multiple areas of federal acquisition, including competition, the appropriate use of contract types, outsourcing and the workforce. The agency also issued memos to guide agencies in managing and creating processes for the ongoing review of existing contracts to identify those deemed wasteful, inefficient or irrelevant.

In July, OMB released an initial round of guidance that covered general ways to improve acquisition processes, make better use of information related to contractors' past performance and balance the blended contractor and federal workforce. The acquisition practices memo, signed by OMB director Peter R. Orszag, directed agencies to develop a plan to save 7 percent on contract spending by the end of fiscal 2011.

The OMB official said the July guidance covered "90 percent of the president's charge from his March memo," and the new material will supplement that information. Contracting specialists have been anticipating in particular guidance on the definition of "inherently governmental" work, or work barred from outsourcing.