An anonymous reader writes "A study published in March found that that the reason why the U.S. government has sub-par IT programs is because leading commercial IT companies established in the U.S. aren't involved in government contracting. Either the government holds closed bidding, essentially stifling competition to its own disadvantage, or prospective companies are put off by the cost-prohibitive regulations associated with government acquisition given the low returns (less than 10% as compared to 20% or more in the commercial world). The dysfunction that results has been documented by the Government Accountability Office: of 15 Department of Defense IT projects studied, 11 had cost increases (one of which was by 2,333%), 13 had schedule slippages (one of which was by six years), and only three met system performance goals. If the U.S. wants to lead other governments in technical capabilities by tapping into the technology being developed within its own borders, then some say that instead of exemptions and workarounds such as was applied with Healthcare.gov, a complete rebuild of the whole acquisition program would need to be implemented."
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