There is a pattern across all agencies where IT “modernization” contracts do not pay for outcomes/performance; instead, they pay for time. Therefore, the incentive is for contractors to “never finish,” resulting in incredible waste.
As an example, IRS modernization started in 1990 to be delivered in 1996. Today, the work is not complete and the contractors say it’s still 5 years away. 29 years behind schedule and ~$15b over budget. Everyone loses, except the government contractors.
This must change. This week, the IRS froze ~$1.5B in modernization contracts, none of which have any effect on tax filings. All of those contracts will then either be cancelled or the contract terms will be changed to pay-for-performance.