OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
Washington, D.C. 20503
MEMORANDUM FOR HEADS
OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
Contracts under the Information Technology Management Reform Act
authorizes agencies to enter into multiagency contracts for information
technology and sets forth good management practices to be followed
by agencies that do so.
of the Clinger-Cohen Act (formerly the Information Technology Management
Reform Act of 1996)(ITMRA), 40 U.S.C. 1424(a)(2), states that an
Executive agency may "enter into a contract that provides for multiagency
acquisitions of information technology in accordance with guidance
issued by the Director." The accompanying Conference Report, H.Rep.
104-45 0, states that "the requirements and limitations of the Economy
Act, and other provisions of law, apply to these multiagency acquisitions."
Accordingly, to the extent practicable, and consistent with the
requirements of the Economy Act, 31 U.S.C. 1535, and other relevant
provisions of law, agencies may permit use of their contracts by
other agencies, and award contracts for multiagency use.
guidance is limited to multiagency contracts issued by agencies
pursuant to Section 5124(a)(2) of ITMRA, 40 U.S.C. 1424(a)(2). Under
Section 5124(a )(3) of ITMRA, 40 U.S.C. 1424(a)(3), the Director
may authorize an agency to enter into a multiagency contract for
procurement of commercial items of information technology that requires
each agency covered by the contract either to procure the items
under that contract or to justify an alternative source of the items.
Similarly, under Section 5112(e) of ITMRA, 40 U.S.C. 1412(e), the
Director may designate one or more heads of Executive agencies as
executive agents for government-wide acquisitions of information
technology. The CIO Council is encouraged to identify appropriate
candidates. This guidance does not apply to contracts under Sections
5124(a)(3) and 5112(e).
The ITMRA provides
agencies the flexibility to acquire information technology effectively
and efficiently. Multiagency contracts permit aggregation of agency
demand to encourage vendors to offer the best possible prices, and
serve to reduce the overhead associated with multiple acquisitions,
particularly by smaller agencies. In order to realize these benefits,
a management commitment commensurate with the potential size of
the contracts is essential. This is especially important because
customer demand can be difficult to anticipate, potentially exceeding
the agency01,s ability to manage the contracts, disrupting business
relationships among agency customers and vendors. Agency heads should,
with regard to multiagency contracts:
that their Chief Information Officers and Senior Procurement Executives
work together to assign responsibilities and establish clear lines
- see that
the agency component conducting the acquisition has established
effective contract management systems and has an adequately trained
and sized staff available to administer the resulting contracts;
the progress of the contracts and ensure that adequate management
resources continue to be devoted, particularly if the contracts
prove to be unexpectedly popular or otherwise begin to strain
existing management resources;
agency compliance with Federal Acquisition Regulation section
16.504(a) by setting an initial dollar or quantity limit on such
placing an initial limit on the amount of interagency usage, subject
to periodic adjustment (either upward or downward) depending on
the agency components demonstrated ability to adequately manage
the contracts in light of the volume of orders received.
you need further information regarding this guidance please contact
the Office of Information and Regulatory Affairs, (202)395-3785.
If you need information regarding procurement-related issues please
contact the Office of Federal Procurement Policy, (202)395-3501.
to review procurement-related matters on the use of multiagency
contracts and will issue additional guidance in the future as appropriate.
This memorandum supersedes OMB Memorandum M-96-36, issued August