# HHS Advances Procurement Modernization

The U.S. Department of Health and Human Services (HHS) is advancing its procurement modernization efforts in fiscal year 2026, building on over $16 billion in acquisition savings achieved in fiscal year 2025. Key initiatives include the establishment of the Procurement Alignment and Collaboration Taskforce (PACT) to consolidate and standardize acquisition processes departmentwide, expansion of shared procurement services through the Office of Mission Acquisition Solutions (OMAS), and migration of acquisition platforms to a FedRAMP-authorized cloud environment. Notably, the National Institutes of Health (NIH) transitioned over 1,000 active awards for IT and professional services to the HHS Consolidated Acquisition System, representing approximately $6.5 billion in obligations, while OMAS oversees more than 4,000 contracts totaling about $2.5 billion in FY 2026 obligations. These efforts aim to streamline operations, reduce duplicative processes, improve accountability, and enhance contracting efficiency through AI integration and workforce development.

- **Why this matters:** Procurement professionals should note the consolidation of acquisition activities and shared services under OMAS and PACT, which may affect contract management and sourcing strategies across HHS divisions.
- The migration to cloud-based acquisition platforms and integration of AI tools indicate a shift toward technology-driven procurement processes, requiring vendors and contractors to adapt to new systems and data management standards.
- The significant volume of contracts transitioning to consolidated systems suggests opportunities for streamlined engagement and potential changes in procurement workflows.
- Organizations supporting IT, professional services, and acquisition modernization should evaluate how these changes impact contract opportunities and compliance requirements within HHS.

**Jurisdictions:** federal
**Industries:** Healthcare, Information Technology
**Topics:** Cloud Services, Regulatory Compliance, Artificial Intelligence
**Published:** September 26, 2026

### Government Entities
- U.S. Department of Health and Human Services (HHS)
- National Institutes of Health (NIH)
- General Services Administration (GSA)
- Office of Management and Budget (OMB)

### Key Quotes
> Our fiscal year 2025 work produced more than $16 billion in acquisition savings. It also demonstrated the value of examining HHS spending as one enterprise. In fiscal year 2026, we created PACT to turn those lessons into durable business processes. We are consolidating common spending, standardizing how we buy, and replacing duplicative processes with shared solutions. This work will streamline operations and make every taxpayer dollar work harder for the American people.
> — Anthony Figliola, Principal Deputy Assistant Secretary for Financial Resources

### Sources
- [HHS Builds on More Than $16 Billion in Fiscal Year 2025 Savings to Modernize Procurement Across the Department | HHS.gov](https://www.hhs.gov/press-room/hhs-modernizes-procurement-builds-on-16-billion-savings.html) - HHS
- [
        Federal News Network | Federal Leader’s Guide to CAIO & CDO: HHS’ Jennifer Johnson on how acquisition teams are prepping to integrate AI tools, drive efficiencies](https://federalnewsnetwork.com/artificial-intelligence/2026/09/federal-leaders-guide-to-caio-cdo-hhs-jennifer-johnson-on-how-acquisition-teams-are-prepping-to-integrate-ai-tools-drive-efficiencies) - Federal News Network
- [HHS Outlines FY 2026 Procurement Modernization Milestones](https://www.executivegov.com/articles/hhs-fy2026-procurement-modernization-milestones) - ExecutiveGov