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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.
The fundamental business purpose of engineering is not the act of writing code, but applying technical skills to achieve concrete financial outcomes. All engineering work ultimately serves one of these two goals: increasing revenue or reducing costs.
When hiring senior technical talent, the most valuable skill isn't just coding proficiency but the ability to take an abstract business problem—like designing a logistics system—and translate it into a functional technical solution. This skill demonstrates a deeper understanding that connects work to real-world value.
Navy CTO Justin Fanelli advises founders to stop asking to be paid for their time and instead price their solutions based on the outcomes and value they deliver. This aligns incentives with the government buyer, rewards impact over effort, and demonstrates a modern, software-defined mindset.
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.
A technical CEO shouldn't ship production code. Their most effective use of coding skills is to build quick demos. This proves a feature's feasibility and can effectively challenge engineering estimates, demonstrating that a project can be completed faster than originally projected.
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.
A real business problem that had persisted for years, costing significant annual revenue, was fully solved in a single 30-minute session with an AI coding assistant. This demonstrates how AI can overcome the engineering resource scarcity that allows known, expensive issues to fester.
To get executive buy-in for long-term "human infrastructure" projects, frame the investment in terms of hard financial ROI. Show how upskilling internal talent directly reduces reliance on expensive external consultants, with every dollar invested saving multiple dollars in return.
Challenging the myth of slow government procurement, the Department of Energy completed an eight-figure software deal with a brand new vendor in just five weeks. This speed was possible because the vendor presented a strong ROI and a solution to an urgent, high-level problem, proving that bureaucracy can move fast for clear priorities.
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.