OMB Guidance to Federal Agencies on Use of Prizes

In 2010, OMB issued guidance to federal agencies on the use of challenges and prizes to spur technological innovation. It explained that many federal agencies have sufficient statutory authority to create technology inducement prizes with existing funds and spending authorizations. Specifically, the OMB noted that NASA and the Departments of Defense and Energy possess statutory authority to “directly administer prize competitions and use appropriated funds to provide the prize purse.”