The House Oversight and Government Reform Committee recently passed the revised "Modernizing Government Technology Act," and the bill will proceed to the House floor for a vote. The legislation aims to modernize federal IT infrastructure and to reduce wasteful government spending on the maintenance of existing "legacy" IT systems. The bill has bipartisan, bicameral and widespread industry support, as well as support from the White House.
The MGT Act stresses the importance of modernized information technology solutions, such as cloud computing. According to the bill, modernized solutions offer efficiencies, cost savings, and greater computing power to agencies. The heart of the legislation is the creation of two funding sources to support agency modernization efforts: working capital funds and a centralized technology modernization fund.
Agencies will be able to tailor the IT solutions to their particular needs. Contractors can anticipate an uptick in RFIs and RFPs related to this modernization effort upon passage of the MGT Act. Reed Smith will continue to monitor the legislation and provide periodic updates. To learn more about the MGT Act click here.
This article is presented for informational purposes only and is not intended to constitute legal advice.
