Obama issued a presidential memorandum to agency heads directing them to work towards a more open and competitive process for awarding government contracts. The memo also asks Orszag to develop guidelines on reviewing current contracts for wasteful spending (to be completed by July 1) and on the appropriate use of no-bid contractors (to be completed by Sept. 30).

In his remarks, the president voiced his support for the efforts of Sens. Carl Levin, D-Mich., and John McCain, R-Ariz., to reform the defense procurement process. He said he had asked Defense Secretary Robert Gates and Deputy Defense Secretary William Lynn (a former defense lobbyist) to work with them on developing legislation to address the matter.

The page on WhiteHouse.gov detailing Obama's ethics pledges, including this one, was replaced with a message telling readers to "please check back soon" for updates related to the president's executive order placing limits on lobbyist activity.

At his Senate confirmation hearing, Peter Orszag, Obama's choice to head the Office of Management and Budget, reiterated the administration's plans of "reviewing the use of no-bid, cost-plus and inter-agency contract vehicles."