Podcast

OMB’s Power Play: The Memo That Could Finally Fix Federal IT Spending

Written by Fed Gov Today | Apr 7, 2026 12:51:40 AM
 

April 7, 2026

In this episode of Fed Gov Today, Gary Washington, former CIO of the U.S. Department of Agriculture and current Chief Strategy Officer at ACT-IAC, shares his perspective on a new Office of Management and Budget (OMB) memo that introduces updated requirements for federal Chief Information Officers. The conversation centers on how this guidance strengthens CIO authority, increases transparency, and reinforces long-standing expectations around IT management across government.

Washington emphasizes that the memo is a meaningful step toward empowering CIOs to fully execute their responsibilities. He highlights the memo’s focus on reinforcing CIO authorities, particularly in enterprise IT decision-making. While these authorities are not new, he explains that formalizing expectations with clearer guidance and deadlines helps ensure they are taken seriously across agencies. He views this as an effort to move CIOs from being seen as back-office support to becoming true strategic partners in mission delivery.

At the same time, Washington notes that policy alone is not enough. He points out that successful implementation requires strong support from agency leadership, including heads and deputies. Without that alignment, CIOs may continue to face challenges in asserting their role. He explains that in many agencies, IT is still not fully recognized as a strategic driver, even though it plays a critical role in delivering services to the public.

A key component of the memo involves increased oversight of IT contracts. CIOs are now required to report on contracts they approve, as well as those approved by their delegates, particularly when those contracts involve digital services for the public. Washington explains that this requirement increases visibility across agencies and ensures CIOs have a clearer understanding of IT spending at every level, including bureaus and components. He sees this as a mechanism that reinforces accountability and encourages more consistent oversight.

Washington also discusses the memo’s focus on eliminating information silos in federal technology acquisition. By collecting and sharing pricing data across agencies, the government aims to identify inconsistencies and improve buying power. He explains that agencies often pay different prices for similar products, and this initiative creates an opportunity to standardize costs and negotiate better deals. In his view, this shift toward enterprise thinking is essential for improving efficiency.

Another important aspect of the memo is the requirement to compile data in a machine-readable, open standard format. Washington describes this as a critical step in making information accessible and actionable. With standardized data, agencies can quickly compare pricing and make more informed decisions. He notes that increased transparency will also make performance more visible across government, which could influence how agencies approach procurement.

Despite the benefits, Washington acknowledges potential challenges. He raises questions about enforcement, particularly how OMB will identify contracts approved without CIO involvement. He also points out that the memo does not clearly outline consequences for non-compliance, which could impact how effectively agencies adopt these requirements.

Overall, Washington views the memo as a strong attempt to reinforce existing policies while pushing agencies toward greater transparency, accountability, and strategic IT leadership. He believes it will help elevate the role of CIOs and encourage a more coordinated, enterprise-wide approach to managing technology in government.