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Government Contracting by — OMB Circular & Memorandum

The Office of Management and Budget (OMB) issues circulars and memoranda that govern how federal agencies manage budgets, procurements, grants, IT, and cybersecurity. These directives flow down to contractors through contract clauses, evaluation criteria, and compliance requirements.

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Market Summary

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Cybersecurity

Zero trust mandates, logging requirements, software supply chain security, and incident response directives.

M-15-13

Policy to Require Secure Connections Across Federal Websites

Mandates the use of HTTPS for all publicly accessible federal websites and web services. Requires agencies to deploy HTTPS with HSTS (HTTP Strict Transport Security) preloading. Eliminates the use of unencrypted HTTP for any government web traffic.

HTTPS for all publicly accessible websit...HSTS preloading for .gov domainsAutomated certificate management
M-17-12

Preparing for and Responding to a Breach of Personally Identifiable Information

Establishes federal policy for preparing for and responding to PII data breaches. Defines breach response procedures, notification requirements, risk assessments, and the roles of agency breach response teams. Requires breach response plans and training.

Breach response team establishment and t...Risk assessment methodology for breach s...Individual notification requirements and...
M-21-31

Improving Investigative and Remediation Capabilities Related to Cybersecurity Incidents

Establishes logging maturity tiers (EL0-EL3) for federal agencies with specific requirements for log categories, retention periods (72-hour active, 12-month cold), and centralized access. Issued in response to the SolarWinds incident to improve incident investigation capabilities.

Logging maturity tiers EL0 through EL372-hour active log retention for investi...12-month cold storage log retention
M-22-01

Improving Detection of Cybersecurity Vulnerabilities and Incidents

Mandates that agencies improve detection capabilities through endpoint detection and response (EDR) deployment, vulnerability disclosure policies, and improved information sharing with CISA. Requires EDR on all federal civilian endpoints.

EDR deployment on all federal civilian e...Vulnerability Disclosure Policy (VDP) im...Improved threat information sharing with...
M-22-09

Moving the U.S. Government Toward Zero Trust Cybersecurity Principles

Mandates that federal agencies achieve specific zero trust security goals by the end of FY2024 across five pillars: identity, devices, networks, applications/workloads, and data. Requires phishing-resistant MFA, encrypted DNS, and micro-segmentation.

Phishing-resistant MFA for agency staffComplete inventory of authorized devicesEncrypted DNS traffic throughout the ent...
M-22-18

Enhancing Software Supply Chain Security

Implements EO 14028 requirements for software supply chain security. Requires software producers to self-attest to NIST SSDF (SP 800-218) practices and provide SBOMs. Establishes timelines for critical and non-critical software attestation.

SSDF (SP 800-218) self-attestation for s...Software Bill of Materials (SBOM) provis...Critical vs. non-critical software timel...
M-23-10

The Registration and Use of .gov Domains

Requires federal agencies to use .gov or .mil domains for all official public-facing digital services. Mandates HTTPS, email authentication (DMARC, SPF, DKIM), and DNS security for all government domains.

Mandatory .gov or .mil domain usage for ...DMARC, SPF, and DKIM email authenticatio...DNS security (DNSSEC) implementation
M-23-18

Securing Open Source Software in the Federal Government

Provides guidance on securely using open source software in federal systems. Requires agencies to maintain inventories of OSS, contribute to the security of critical OSS projects, and apply supply chain risk management practices to open source dependencies.

OSS inventory and risk assessmentVulnerability management for open source...Contribution to critical OSS project sec...

Information Technology

Cloud strategy, digital experience, AI governance, IPv6 transition, and data center optimization.

M-16-21

Data Center Optimization Initiative (DCOI)

Directs agencies to consolidate and optimize federal data centers in alignment with FITARA. Establishes targets for data center closure, virtualization, server utilization, energy efficiency, and cost savings. Requires agencies to report progress quarterly.

Tiered data center closure targetsServer utilization and virtualization me...Energy efficiency (PUE) requirements
M-18-23

Shifting from Cloud First to Cloud Smart

Updates federal cloud policy from "Cloud First" to "Cloud Smart," emphasizing security, procurement, and workforce considerations alongside migration. Requires agencies to evaluate cloud readiness, address security in cloud environments, and develop cloud-skilled workforces.

Cloud readiness assessment before migrat...FedRAMP authorization for cloud servicesData classification and protection in cl...
M-21-07

Completing the Transition to Internet Protocol Version 6 (IPv6)

Directs agencies to complete the transition to IPv6-only networks by the end of FY2025. Requires 80% of IP-enabled federal assets to operate in IPv6-only environments and mandates that all new networked federal systems and services operate on IPv6.

80% of IP-enabled assets on IPv6-only by...All new networked systems must support I...IPv6-only pilot programs in each agency
M-23-22

Delivering a Digital-First Public Experience

Directs agencies to modernize public-facing digital services following the 21st Century IDEA Act. Requires accessible, mobile-friendly websites, digitized forms and services, and consistent user experience. Establishes digital experience standards and accountability.

WCAG 2.1 AA accessibility complianceMobile-responsive design for all public ...Digitization of all paper-based forms
M-24-04

Advancing the Responsible Acquisition of Artificial Intelligence in Government

Provides guidance on acquiring AI capabilities in accordance with EO 14110. Addresses AI risk management in procurement, vendor evaluation criteria, and post-award oversight. Requires agencies to inventory AI use cases and designate Chief AI Officers.

AI use case inventory and risk assessmen...Chief AI Officer designation per agencyAI-specific evaluation criteria in procu...
M-24-10

Advancing Governance, Innovation, and Risk Management for Agency Use of AI

Implements EO 14110 requirements for agency AI governance. Mandates AI impact assessments for rights-impacting and safety-impacting AI, establishes minimum practices for AI risk management, and requires public transparency on agency AI use cases.

AI impact assessments for rights-impacti...Minimum risk management practices for sa...Public AI use case inventories

Procurement & Acquisition

Commercial activities policy, voluntary consensus standards, and value engineering requirements.

Management & Operations

Budget preparation, user fees, FOIA modernization, and customer experience measurement.

A-130

Managing Information as a Strategic Resource

The cornerstone circular for federal information management and IT governance. Covers information resource management, privacy, security, records management, and open data. Appendices address security of federal information resources and responsibilities.

Information resource management (IRM) pl...Privacy protections for PII and recordsSecurity requirements for federal inform...
A-25

User Charges

Establishes federal policy on assessing user charges for government services and resources. Requires agencies to charge fair market value for services provided to identifiable recipients, with exceptions for activities that primarily benefit the general public.

Full cost recovery for identifiable bene...Fair market value for commercially avail...Exceptions for general public benefit ac...
M-22-03

Strengthening the Federal Government's Commitment to FOIA

Directs agencies to modernize FOIA processes, reduce backlogs, and proactively publish information. Emphasizes technology solutions for FOIA processing, requires agencies to maximize proactive disclosures, and directs improvements in FOIA request tracking and response.

FOIA backlog reduction targetsProactive disclosure of frequently reque...Technology modernization for FOIA proces...
M-23-16

Measuring, Monitoring, and Improving the Federal Customer Experience

Implements requirements from the President's Management Agenda for improving customer experience across High Impact Service Providers (HISPs). Establishes standards for CX measurement, A-11 Section 280 reporting, and service delivery improvements.

CX measurement standards and metricsA-11 Section 280 reporting requirementsCustomer journey mapping for designated ...

Cost Principles

Cost allowability, indirect rates, and benefit-cost analysis for educational institutions, state/local governments, and nonprofits.

A-122

Cost Principles for Non-Profit Organizations

Established cost principles for federal awards to nonprofit organizations. Defined allowable direct and indirect costs, cost allocation bases, and requirements for negotiating indirect cost rates with the cognizant agency. Superseded by 2 CFR 200.

Indirect cost rate negotiation with cogn...Allowable/unallowable cost categories fo...Cost allocation base selection
A-21

Cost Principles for Educational Institutions

Established cost principles for federal awards to educational institutions. Defined direct costs, facilities and administrative (F&A) rate calculations, and cost allocation methodology specific to universities. Superseded by 2 CFR 200 Subpart E.

Facilities & Administrative (F&A) rate c...Direct cost identification and allocatio...Allowable and unallowable cost categorie...
A-87

Cost Principles for State, Local, and Indian Tribal Governments

Established cost principles for determining allowable costs under federal awards to state, local, and tribal governments. Superseded by 2 CFR 200 Subpart E but defined foundational concepts for direct/indirect cost allocation and rate negotiation.

Indirect cost rate proposals and negotia...Cost allocation plans for central servic...Direct/indirect cost classification rule...
A-94

Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs

Provides guidelines for conducting benefit-cost and cost-effectiveness analyses of federal programs and projects. Establishes discount rates for evaluating government investments and decisions, including lease-purchase analyses and regulatory impact assessments.

Standard discount rates for cost-benefit...Present value calculations for long-term...Lease-purchase analysis methodology

Audit & Financial Reporting

Internal controls, payment integrity, financial management systems, single audits, and financial reporting.

A-123

Management's Responsibility for Enterprise Risk Management and Internal Control

Defines management responsibility for enterprise risk management and internal control in federal agencies. Implements requirements of the Federal Managers Financial Integrity Act (FMFIA) and integrates enterprise risk management with internal control assessment.

Enterprise Risk Management (ERM) framewo...Internal control assessment per GAO Gree...Annual assurance statements on internal ...
A-126

Improving the Accuracy of Federal Payments

Implements the Payment Integrity Information Act (PIIA), requiring agencies to identify programs susceptible to significant improper payments and report error rates. Establishes requirements for payment recapture auditing and corrective action plans.

Risk assessment for improper payment sus...Statistical sampling and error rate esti...Payment recapture audit programs
A-127

Financial Management Systems

Establishes requirements for agency financial management systems to support the government-wide goal of financial management improvement. Requires systems to comply with the Federal Financial Management Improvement Act (FFMIA) and support clean audit opinions.

FFMIA compliance for core financial syst...U.S. Standard General Ledger (USSGL) cha...Integration with Treasury payment and re...
A-133

Audits of States, Local Governments, and Non-Profit Organizations

Established Single Audit requirements for organizations spending $750K+ in federal awards annually. Superseded by 2 CFR 200 Subpart F but established the framework for auditing federal grant recipients that remains largely intact in the Uniform Guidance.

$750,000 threshold for Single Audit requ...Compliance audit of each major federal p...Financial statement audit requirements
A-136

Financial Reporting Requirements

Prescribes the form and content of agency financial statements, Performance and Accountability Reports (PARs), and Agency Financial Reports (AFRs). Updated annually to incorporate new accounting standards and reporting requirements.

Agency Financial Report (AFR) content an...Performance and Accountability Report (P...Required financial statements and footno...

Grants Management

Uniform Guidance (2 CFR 200), grants administration, and cooperative agreement requirements.

Data & Evidence

Electronic records, evidence-based policymaking, data quality, open data, and federal data strategy.

M-19-15

Improving Implementation of the Information Quality Act

Provides guidance on ensuring the quality, objectivity, utility, and integrity of information disseminated by federal agencies. Establishes pre-dissemination review requirements and data quality standards for influential scientific and statistical information.

Pre-dissemination review for information...Objectivity, utility, and integrity stan...Peer review for influential scientific i...
M-19-17

Evidence-Based Policymaking: Learning Agendas and Annual Evaluation Plans

Implements the Foundations for Evidence-Based Policymaking Act. Requires agencies to develop learning agendas, annual evaluation plans, and capacity assessments. Establishes Chief Evaluation Officers and mandates evidence building activities.

Multi-year learning agendas with priorit...Annual evaluation plans aligned to learn...Chief Evaluation Officer designation
M-19-21

Transition to Electronic Records

Directs agencies to transition to fully electronic recordkeeping by December 31, 2022. Requires agencies to manage all permanent records electronically, close agency-operated records storage facilities, and transfer records to NARA in electronic formats.

Fully electronic recordkeeping by end of...Permanent records managed and transferre...Closure of agency-operated records stora...
M-19-26

Update to Data Inventory and Comprehensive Data Catalog Requirements

Implements the OPEN Government Data Act requirements for federal data inventories. Requires agencies to maintain comprehensive data catalogs on data.gov, make data open by default, and publish machine-readable metadata for all datasets.

Comprehensive data inventory published o...Machine-readable metadata for all datase...Open by default policy for government da...
M-20-21

Federal Data Strategy Action Plan

Implements the Federal Data Strategy through specific actions agencies must take to leverage data as a strategic asset. Establishes actions for governance, standards, infrastructure, and workforce development to improve how agencies collect, use, and share data.

Data governance framework establishmentData inventory and metadata standardsData infrastructure modernization

Budget

Budget preparation, submission, execution, and capital planning requirements.

About OMB Circulars and Memoranda

The Office of Management and Budget (OMB) issues circulars, memoranda, and bulletins that establish government-wide policies for federal agencies. Circulars (A-series) are standing policies that remain in effect until revised or rescinded. Memoranda (M-series) typically implement specific presidential directives or address time-sensitive policy needs.

For government contractors, OMB directives are critical because they define the rules that agencies must follow when procuring goods and services, managing grants, implementing IT systems, and securing federal data. Circulars like A-76 determine whether work is contracted out, A-123 shapes internal control requirements that flow to contractors, and memoranda like M-22-09 (Zero Trust) drive billions in federal cybersecurity spending. Understanding these directives helps contractors anticipate requirements, price proposals accurately, and maintain compliance.