The General Services Administration (GSA) and the Office of Management and Budget (OMB) have announced the launch of a flexible model for funding federal information technology transformation initiatives using the Technology Modernization Fund (TMF).
The American Rescue Plan that became law in March allocates $1 billion in funds for TMF, GSA said Tuesday.
The TMF Board will prioritize agency proposals that focus on high-priority systems modernization, cybersecurity, public-facing digital services and cross-government services and infrastructure and will provide agencies flexibility in paying back awarded funds.
Full repayment will be for IT modernization projects that generate financial savings that can be used to fully pay back the TMF, while partial repayment will be for initiatives that create some savings but are not expected to meet full cost recovery. Minimal repayment will apply to projects that seek to address cyber improvements and other urgent government IT issues but are unlikely to yield direct cost savings.
“The updated TMF model provides the clarity and flexibility necessary to encourage federal agencies to prioritize technology modernization while transforming the relationship between the federal government and the public we serve. It is more aggressive–to meet the urgent technology needs of the federal government today, as well as more ambitious–to anticipate the demands of tomorrow,” said Katy Kale, acting GSA administrator and a 2021 Wash100 Award winner.
Federal agencies have until June 2nd to submit IT modernization project proposals.