Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
Why Governments Pay More for Software Than Private Companies
Lucas and Luna dig into a staggering inefficiency: governments at every level pay 30 to 50 percent more for identical software licenses than private companies. They use the specific example of Microsoft 365 — where the US federal government's contract price per user is nearly double what a mid-size business pays — and trace the root causes to procurement rules, bundled contracts, and the absence of competitive bidding in legacy renewals. The episode also explores why agencies like the Department of Defense end up on 'enterprise agreements' that lock them into five-year…
The skinny
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