Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
How the US Government Spends 600 Billion a Year on Contractors It Cant Manage
The US government spends over $600 billion annually on contractors — more than the entire budget of most countries — yet lacks basic data on who it's paying and whether the work is worth it. This episode drills into a 2024 Government Accountability Office report revealing that half of all federal contract actions lack sufficient competition, and many are awarded without performance metrics. Lucas and Luna examine one specific case: the $50 billion IT modernization effort at the Department of Defense, where cost overruns hit 40 percent and timelines stretched from 5 to 15 years. They also…
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