Let's be honest, government procurement doesn't exactly scream "excitement." But it's a big deal.
Every year, the federal government spends hundreds of billions of dollars buying everything from office furniture to fighter jets. Purchasing technology, or the services to build technology, makes up a growing portion of federal procurement, and it presents unique challenges. According to the Standish Group's 2020 CHAOS report, 70% of IT projects fail to deliver on time, on budget, or with the required features.
Tech evolves fast. Government procurement? Not so much. The result is that agencies often end up locked into outdated, overpriced systems that don't meet the needs of real users. That's why modernizing procurement—especially for digital services—isn't just about efficiency. It's about ensuring the government can actually serve the people it's meant to help.
So, how does federal procurement work?
At its core, procurement is just a fancy word for how the government buys stuff. Because government purchases are funded by taxpayer dollars, there are literal tomes of rules to ensure everything is done fairly, competitively, and responsibly. Specific agencies layer on even more rules and policies, many of them outdated, adding to the complexity.
The process usually looks something like this:
- Identifying a need – An agency realizes it needs something, maybe a new benefits application system or better cloud storage.
- Market research – They check what is available, see what vendors can provide, and determine approximate costs.
- Solicitation – The agency posts a Request for Proposals (RFP) or Request for Quotes (RFQ), outlining requirements and evaluation criteria.
- Evaluation & award – Proposals come in, and the agency selects the one that best meets their criteria—typically a mix of price, technical capability, and past performance.
- Contract administration – Once the contract is awarded, the agency monitors progress to ensure the vendor delivers what they promised.
Sounds simple enough, right? Except in reality, this process can take months, or even years, due to laws, regulations, or just pure muscle memory of “this is how we’ve always done it.” If you're buying software or creating digital services for public use, by the time the contract is awarded, the technology or the original requirements are often already outdated.
Why traditional procurement fails for technology
Let's say an agency wants to build a new digital service, such as a portal for your Social Security account. Under the old-school federal procurement model, the agency would spend a year writing a massive, detailed contract outlining every possible requirement for the portal. Then, they'd award a huge, multi-year contract to a single vendor, who would build the entire system behind closed doors.
Fast forward a year (or five): The agency finally receives the portal, only to realize it doesn't work the way people need it to access their Social Security account–or it doesn't work at all–because they didn’t prioritize usability testing or iterative design. Now they're stuck with an outdated, clunky system that will cost even more money to fix. That's how real government IT disasters have happened.
How to buy technology the right way
Great news! Not all is lost. Many people across the government have been working to evangelize a better approach. Digital service procurement experts, from groups like 18F and the U.S. Digital Service, have laid out best practices for procuring digital services the right way. It is worth noting up front, however, that these groups have either been eliminated entirely and prevented from continuing this procurement improvement work.
- Modular contracting: Start small, deliver fast– Instead of a single, massive contract, agencies can break big projects into smaller pieces, each with its own timeline and deliverables. This reduces risk and lets teams adjust based on what's working (or not). Think of it like ordering a meal course by course instead of committing to a mystery prix fixe dinner.
- Agile development: Build in iterations, not all at once– With agile contracts, vendors don't disappear for three years and return with a finished product. Instead, they deliver working software in short cycles, allowing for constant feedback and improvements. This ensures the final product actually meets agency goals and user needs.
- User-centered design: Build for people, not just requirements – Good digital services aren't just functional–they're usable. That means actually talking to the people who will use them before you've locked yourself into a bad design. Procurements should require vendors to test with real users throughout development, not just at the end.
- Performance-based contracting: Focus on outcomes, not just deliverables – Instead of micromanaging how a vendor builds something, agencies should define what success looks like and let vendors propose the best way to achieve it. This encourages innovation and ensures the focus stays on results—not onjust checking boxes.
Bottom line
At the end of the day, procurement isn't just about buying things—it's about making sure the government can actually serve the public. When agencies get procurement wrong, they end up with technology that frustrates users and doesn’t serve the mission. But when they get it right, they can deliver modern, user-friendly digital services that actually work, and inthe long run, save agencies money and deliver services faster and more reliably to the public.
Contracts can't be cut forever, and eventually DOGE will have to create contracts and deliver value to the public. The more seasoned procurement technologists who know how to buy digital services are fired or forced to quit, the greater the risk that old habits will return to haunt us.
After reading all of this, you might be wondering "Why does the government rely on buying contractor support to build technology and digital services in the first place? Why can't they just build it themselves? After all, in the year 2025, we should expect our government to deliver most services digitally." Great question! In Part 2 of this series, we'll explain more behind this dependency on contractors for critical technical needs.