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Government procurement processes are rooted in a pre-digital, paper-based mental model. They treat software like a physical commodity that must be procured anew for each jurisdiction, preventing them from leveraging software's inherent scalability and leading to massive, redundant development costs.
When one software vendor dominates a government sector, it creates a "software monoculture." This introduces systemic risk, where a single bug can be forked across dozens of states, simultaneously disabling critical services for millions of people, as seen when a Medicaid eligibility error affected 29 states.
An ideal procurement process identifies the most cost-effective known solution but also allows bidders to propose an innovative alternative. This alternative must be accompanied by a rigorous impact evaluation, turning procurement into a mechanism for continuous improvement rather than a static decision.
To minimize risk, government contracts often require bidders to have prior experience building the exact same system. This seemingly prudent rule creates a catch-22, barring new entrants and locking in a small number of incumbents who can then dominate the market and inflate prices.
The government's core model for funding, oversight, and talent management is a relic of the post-WWII industrial era. Slapping modern technology like AI onto this outdated 'operating system' is a recipe for failure. A fundamental backend overhaul is required, not just a frontend facelift.
The data infrastructure for law enforcement is fragmented and archaic. Until recently, some major US cities ran on paper, and states even outlawed cloud storage. This creates massive data silos that hinder investigations, as criminal activity crosses jurisdictions that don't share data.
In government, digital services are often viewed as IT projects delivered by contractors. A CPO's primary challenge is instilling a culture of product thinking: focusing on customer value, business outcomes, user research, and KPIs, often starting from a point of zero.
The defense procurement system was built when technology platforms lasted for decades, prioritizing getting it perfect over getting it fast. This risk-averse model is now a liability in an era of rapid innovation, as it stifles the experimentation and failure necessary for speed.
Government agencies without in-house technical expertise are at the mercy of contractors who inflate costs. Hiring even one skilled software engineer provides the capacity to call a vendor's bluff, potentially saving millions by demonstrating that a requested "million-dollar fix" is actually a 30-minute task.
Government procurement is slow because every scandal or instance of fraud leads to new rules and oversight. The public demands this accountability, which in turn creates the very bureaucracy that citizens and vendors complain about.
A key cultural shift in government procurement is moving from a cost-minimization mindset to a value-maximization one. Instead of asking how to reduce a contractor's margins, smart buyers should focus on achieving better results with the dollars being spent, rewarding companies that deliver superior impact.