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Month: October 2024

OMB Issues First Governmentwide AI Acquisition Policy

The Office of Management and Budget (OMB) released new guidance today to improve how Federal agencies acquire artificial intelligence (AI) technologies. The guidance, outlined in the memo Advancing the Responsible Acquisition of AI in Government, directs agencies to boost cross-functional collaboration, manage AI risks and performance, and foster a competitive AI market. (MeriTalk October 3, 2024)

OMB’s Deputy Director for Management, Jason Miller, emphasized the need for responsible AI procurement, stating that Federal agencies will either have AI systems built by contractors or purchase them directly. “This new memo equips agencies with the tools to capture AI’s potential while managing its risks,” Miller said. (ibid)

A large portion of the memo focuses on managing AI risks, with OMB mandating early involvement from agency privacy officials in AI acquisition processes to identify privacy risks and ensure legal compliance. Agencies are also instructed to negotiate contracts that require vendors to provide detailed information for evaluating AI systems, assessing risks, and protecting government data. (ibid)

The guidance addresses generative AI specifically, calling for testing, red-teaming, and evaluation to ensure the safety and appropriateness of AI tools. It also promotes practices to avoid vendor lock-in, prioritize transparency, and ensure interoperability in AI systems. (ibid)

This guidance fulfills a key part of the Biden-Harris administration’s October 2023 AI executive order and reflects input gathered from public comments and industry roundtables. OMB’s Miller highlighted the Federal government’s significant purchasing power, noting that in 2023, it spent over $100 billion on IT products and services. He stressed that responsible procurement decisions can accelerate AI advancements while mitigating risks for government use. (ibid)

Questions concerning the new OMB issued AI guidance? Give us a call.

2025 minimum wage is set, mostly

The Labor Department recently set new minimum wages for federal contractors, ranging from $9.30 per hour for tipped workers to $17.75 per hour, depending on job type. A pair of notices from the Federal Register lays out the specifics. Starting next January, federal contractors with agreements signed, renewed, or extended after January 2022 must receive a minimum wage of $17.75 per hour, regardless of whether they receive tips. This move stems from a 2021 executive order by President Biden, which expanded his $15 minimum wage mandate to federal contractors and required annual updates based on the Bureau of Labor Statistics’ Consumer Price Index (CPI-W). (Government Executive October 3, 2024)

For contracts signed before January 2022, the minimum wage for non-tipped workers will rise from $12.90 to $13.30 per hour, and tipped workers will see an increase in their “cash wage” from $9.05 to $9.30 per hour. Although this dual system is complex, Labor officials expect all contracts to soon fall under the new executive order, streamlining wage regulations. (ibid)

Despite the complexity of this dual wage system, Labor Department officials expect that soon all federal contracts will fall under the new executive order, eliminating the need for the older wage structure. (ibid)

Have questions about which minimum wage structure your contracts are covered under? Give us a call.

Rising Civilian IT Spending Trends for FY 2025

IT spending among federal civilian agencies has surged in recent years. It is expected to continue with spending priorities for fiscal 2025 to include cybersecurity, AI, enhancing public services, and IT modernization. The total civilian IT budget has grown by 8.1% since 2023, reaching $76.8 billion for 2025. The Department of Education, Social Security Administration, and Department of Homeland Security are set to see the largest budget increases, while Veterans Affairs, NASA, and Agriculture face reductions. (Washington Technology October 7, 2024)

Key FY2025 Civilian IT Priorities:

  • Cybersecurity: Spending increases by 15% to $13 billion, with a focus on public safety, implementing Executive Order 14028, Federal Zero Trust Strategy, and other software supply chain security and OMB memorandums. Agencies must prioritize zero-trust principles and cryptography, especially in vulnerable, sensitive systems. (ibid)
  • Artificial Intelligence (AI): Major funding supports Executive Order 14110, establishing chief AI officers and allocating $300 million for AI risk management, plus $40 million for hiring and training AI talent. (ibid)
  • Digital Public Experience: Efforts to improve digital services for the civilian sector under Executive Order 14058 and the 21st Century Integrated Digital Experience Act. (ibid)
  • Data as a Strategic Asset: Emphasizing better use of data in decision-making, guided by the Federal Data Strategy.
  • IT Modernization: Adoption of modern technologies and retiring legacy systems, with an additional $75 million for the Technology Modernization Fund. (ibid)

Agency Highlights:

  • VA: Despite reduced budget requests, the VA is innovating AI integration, allocating $420.7 million for CRM, streamlining veteran services, and piloting AI for better productivity. (ibid)
  • CISA: The Cybersecurity and Infrastructure Security Agency seeks $442 million for its CADS program, aimed at advancing cybersecurity analytics and data systems to detect, mitigate, and prevent cyber threats. (ibid)

As federal budgets are finalized, IT providers might align their solutions with these key programs and priorities for success.

Questions about Fiscal Year 2025 spending? Give us a call.

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