Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
Why Government IT Procurement Costs Twice as Much
Episode 100 of The Fiscal Policy Podcast examines why the US government pays roughly double the private-sector price for comparable technology. Lucas and Luna dig into a 2024 GAO report that found federal agencies spent $2.7 billion on custom software development that commercial alternatives could have delivered for $1.2 billion. They explore specific procurement rules—like the Competition in Contracting Act and the Davis-Bacon Act's prevailing wage requirements—that inflate costs without improving outcomes. The hosts also discuss a failed attempt by the Department of Veterans Affairs to…
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