Requirements for achieving efficiency, transparency, and innovation through reusable and open source software
What is the Federal Source Code Policy?
In August 2016, the Office of Management and Budget (OMB) issued M-16-21, Federal Source Code Policy: Achieving Efficiency, Transparency, and Innovation through Reusable and Open Source Software (PDF, 188 KB, 15 pages).
The Federal Source Code Policy is designed to support the reuse of and public access to custom-developed federal source code. It requires new, custom-developed source code developed specifically by or for the federal government to be made available for sharing and re-use across all federal agencies. Furthermore, the policy supports publishing open source software (OSS).
Agencies are required to perform several tasks in order to satisfy the objectives of the policy:
- Updated agency policy: Agencies must update their policies to be consistent with the Federal Source Code Policy.
- Updated acquisition language: Agencies must update acquisition language to capture new custom code, whether built by a contractor or federal employee.
- Updated code inventory: Agencies must create and update an agency source code inventory to be placed online on their agency website.
Why is it important?
Each year, the federal government spends billions of dollars on software. Federal agencies do not always make their new code broadly available for reuse across the government; if they do make their source code available, it may not be in a consistent way.
When federal agencies make their custom-developed source code broadly available, it can reduce duplicative acquisitions, save taxpayer money, and increase quality.
What does it mean to achieve efficiency, transparency, and innovation through reusable and open source software?
OMB’s policy guidance in M-16-21 requires all executive branch agencies to conduct a three-step analysis in meeting their software needs.
- Conduct strategic analysis and analyze alternatives
- Consider existing commercial solutions
- Consider custom development
The analysis helps teams identify alternatives and mitigate additional spending on custom-developed software.
OMB M-16-21
Explore OMB M-16-21, Federal Source Code Policy: Achieving Efficiency, Transparency, and Innovation through Reusable and Open Source Software (PDF, 188 KB, 15 pages)Conduct strategic analysis and analyze alternatives
Step 1 (Conduct Strategic Analysis and Analyze Alternatives): Each agency must conduct research and analysis prior to initiating any technology acquisition or custom code development. The strategic analysis should consider not only agency mission and operational needs, but also external public initiatives and interagency initiatives such as Cross-Agency Priority Goals. Having conducted the strategic analysis, agencies shall then conduct an alternatives analysis, evaluating whether to use an existing Federal software solution or to acquire or develop a new software solution. The alternatives analysis shall give preference to the use of an existing Federal software solution. 25
25 Existing Federal software solutions are those for which appropriate rights are already held by the Government, which may include commercial or custom-developed software solutions.
View the full legislationThe purpose of this step is to ensure your agency — not just your acquisition team, but also your technology team, program management team, and leadership, among others — has a complete, strategic view of what offerings exist before determining that an acquisition is required.
This step asks teams to do market research to discover what federal and non-federal solutions are already available before buying or building software.
Strategic analysis considerations
- Review Office of Federal Procurement Policy M-16-12, Improving the Acquisition and Management of Common Information Technology: Software Licensing (PDF, 13 MB, 10 pages)
- Consult with your agency’s appointed software manager
Consider existing commercial solutions
Step 2 (Consider Existing Commercial Solutions): If an agency’s alternatives analysis concludes that existing Federal software solutions cannot efficiently and effectively meet the needs of the agency, the agency must explore whether its requirements can be satisfied with an appropriate commercially-available solution. 26
26 Preference must first be given to procurement of existing commercial solutions through best-in-class vehicles identified by category management policies.
View the full legislationAs with step one, the purpose of this step is to develop your agency’s strategic view of the marketplace prior to initiating an acquisition. Agencies should remember in surveying the marketplace that many commercial solutions can be extended through custom code to meet your requirements.
Consider custom development
Step 3 (Consider Custom Development): If an agency’s alternatives analysis concludes that an existing Federal software solution or commercial solution cannot adequately satisfy its needs, the agency may consider procuring custom-developed code in whole or in conjunction with existing Federal or commercial code.
When commissioning new custom-developed software, agencies must consider the value of publishing custom code as OSS and negotiate data rights reflective of its value-consideration. Agencies must also obtain sufficient rights to fulfill this policy’s objectives related to Government-wide code reuse and the open source pilot program.
View the full legislationThe Federal Source Code Policy pilot program requires agencies to release at least 20% of new custom-developed code each year as open source software. While agencies are encouraged to release a greater percentage of code if doing so is beneficial to the government, agencies are not required to release more than 20% of code.
If your agency determines that custom code development is necessary, it is important to clearly communicate reuse and open source requirements as part of the solicitation and presolicitation process. Whether during a Request for Information or industry day, explain to potential vendors early and often that your agency intends to receive appropriate rights for government re-use or open source, as applicable.
Note
Digital.gov provides information and resources for federal agencies related to web and digital policies. However, we cannot interpret the statutes or specific requirements.
Contact OMB’s Office of the Federal CIO at ofcio@omb.eop.gov with any questions about interpretations of the law and guidance.
