Original broadcast on 3/16/25
Why Does the Government Keep Overspending on Procurement?
Despite years of reform efforts, the federal government continues to waste billions on unnecessary software licenses, redundant purchases, and inefficient procurement strategies.
On Fed Gov Today with Francis Rose, Joe Jordan, former Administrator of Federal Procurement Policy at OMB and CEO of Acta Para, explained why enterprise-wide purchasing remains a challenge—and what needs to change.
The Cost of Buying in Silos
One of the biggest procurement inefficiencies stems from agencies making independent purchasing decisions rather than leveraging government-wide contracts.
"The government often buys thousands more software licenses than it needs," Jordan said. "Agencies argue they need unique configurations, but in reality, many of these purchases could be consolidated to save costs."
Jordan highlighted past efforts, such as the Federal Strategic Sourcing Initiative and category management, which aimed to streamline procurement. However, without strong leadership enforcement, agencies often resist compliance.
The Role of Leadership & Transparency
For enterprise-wide procurement to work, Jordan emphasized two key elements:
1️⃣ Leadership commitment – Senior officials must push agencies to adopt smarter buying strategies.
2️⃣ Pricing transparency – Agencies need better data on what other departments are paying for the same products.
"Too often, agencies don’t know if they’re overpaying because pricing data isn’t shared effectively," Jordan explained. "If California can track pricing data across agencies, why can’t the federal government?"
Can Centralized Procurement Fix the Problem?
There are reports that the Trump administration may require all government purchasing to go through the General Services Administration (GSA). Jordan believes this could be a game-changer—if done correctly.
"If you centralize procurement but cut the staff responsible for executing it, you’re setting it up for failure," he warned. "It needs to be a well-structured effort that balances efficiency with agency flexibility."
The Future of Smarter Buying in Government
Jordan outlined the path forward:
✔ Enterprise-wide procurement policies must be enforced
✔ Pricing transparency needs to improve
✔ Leadership buy-in is critical for long-term success
Federal procurement reform has been a longstanding challenge, but with the right strategy, agencies can save billions while maintaining flexibility.
Key Takeaways:
- Enterprise Procurement Reduces Waste – Agencies should adopt government-wide purchasing agreements to cut costs.
- Pricing Transparency is Critical – Improved data-sharing across agencies would drive smarter procurement decisions.
- Leadership Must Drive Change – Without senior-level enforcement, agencies will continue to resist enterprise-wide buying strategies.