The revised Modernizing Government Technology Act (HR 2227) passed the House by voice vote May 17. Identical legislation already has been introduced in the Senate by Sens. Gerry Moran (R-Kan.) and Tom Udall (D-N.M.), and with strong bipartisan and industry support, the bill is expected to advance to the president in upcoming weeks.

As Reed Smith recently advised, the legislation aims to modernize federal IT infrastructure and to reduce wasteful government spending on the maintenance of existing "legacy" IT systems. The MGT Act stresses the importance of modernized information technology solutions, such as cloud computing. 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.