The Biden-Harris Administration has unveiled the Better Contracting Initiative (BCI), a transformative effort to improve federal procurement practices and save taxpayers billions of dollars annually. With the federal government spending approximately $700 billion annually on goods and services, the BCI is poised to address inefficiencies, ensure equitable contracting opportunities, and leverage the government’s scale to secure better deals. Building upon the achievements of the Obama-Biden administration, which saved $90 billion through enterprise purchasing strategies, the BCI aims to deliver an additional $10 billion annually in savings and cost avoidance.

Central to the BCI is the development of a centralized data management strategy. Federal agencies frequently encounter inconsistent pricing due to limited interagency data sharing, hindering their ability to negotiate effectively. The Office of Management and Budget (OMB) will implement a new high-definition framework to facilitate the analysis of acquisition data across the federal enterprise. This will empower contracting officials with pricing benchmarks and vendor data to identify best-value solutions, particularly for commonly used goods like IT hardware and office supplies. The tool will also support equity initiatives by helping agencies identify opportunities for small business participation in federal contracts.

Another pillar of the BCI involves negotiating enterprise-wide software licenses. Federal agencies currently spend over $70 billion annually on IT products, with significant price variations for identical software licenses. By streamlining procurement through government-wide agreements, the General Services Administration (GSA) seeks to reduce these discrepancies, secure favorable terms, and improve efficiency by eliminating redundant negotiations. This approach also supports the federal government’s commitment to small business inclusion and marketplace diversity.

The BCI also addresses inefficiencies in professional services contracting, which accounts for over $110 billion annually. Often, poorly defined contract requirements lead to costly modifications. To mitigate this, the OMB will guide agencies to adopt proven methodologies for refining acquisition requirements. Facilitated workshops involving multidisciplinary teams will help ensure performance-based requirements that lead to cost-effective outcomes. Concurrently, workforce development initiatives will provide acquisition professionals with just-in-time training, enhancing their capability to manage complex procurements effectively.

High-risk contracts, including sole-source agreements, are another focus area of the BCI. Agencies frequently encounter challenges when limited vendor options or unique requirements constrain competition. To counteract inflated pricing risks, the Department of Defense (DoD) has deployed strategies such as peer reviews and specialized cost and engineering teams. Civilian agencies will now adopt similar measures, leveraging interagency expertise to enhance contract performance and cost control. Hybrid contracts, which adapt payment structures to varying risk levels during a project's lifecycle, will also see increased utilization for projects like weather satellites and environmental clean-ups.

The BCI reflects the administration’s broader commitment to leveraging federal contracting as a tool to advance national priorities. Initiatives such as enhancing domestic content under the Buy America Act and promoting diversity in federal procurement have set new benchmarks for inclusive economic growth. The administration has also prioritized modernizing workforce development and expanding innovation labs to make federal contracting more accessible, particularly for small businesses.

The BCI represents a comprehensive effort to modernize federal procurement, enhance efficiency, and foster equitable economic opportunities. By leveraging data, refining acquisition strategies, and promoting workforce development, the initiative sets a strong foundation for sustainable and impactful federal spending.

Disclaimer: This blog post is a summary of publicly available information and does not guarantee accuracy. It is not intended to provide legal advice.