Federal Acquisition

Federal spending for goods and services has changed dramatically in recent years. Although the Pentagon remains the government's dominant buyer, accounting for two-thirds of all federal acquisition spending last year, military acquisitions have fallen from their peak levels during the Cold War. On the other hand, spending by civilian agencies has risen somewhat. The government, as a whole, now spends more on services--from basic maintenance to space shuttle operations--than on supplies and equipment. The acquisition process has become more streamlined as new contract techniques have allowed agencies to buy what they need much faster than in the past. Congress and the administration have taken several steps to improve federal acquisition, focusing on ways to simplify the process and improve decisionmaking in acquiring information technology. Despite these recent reforms and the efforts of many dedicated people over the years, the government still lacks a world-class purchasing system. All too often, the products and services that the government buys cost more than expected, are delivered late, or fail to work as expected. No commercial operation would stay in business for long with results like these. The problems are particularly evident in two costly areas: weapons systems and information technology. Significant improvements in these areas, as well as in the skills of the acquisition workforce, are essential to getting better results.

GAO noted that: (1) federal spending for goods and services has changed significantly in recent years; (2) although the Department of Defense remains the dominant federal buyer, accounting for two-thirds of all federal acquisition spending last year, defense acquisition has declined from peak Cold War levels; (3) spending by civilian agencies has increased moderately; (4) the government as a whole now spends more on services--ranging from basic maintenance, to running computer systems, to operating the space shuttle--than on supplies and equipment; (5) the acquisition process has become more streamlined as new contract vehicles and techniques have allowed agencies to buy what they need much faster than in the past; (6) Congress and the administration have taken a number of steps recently to improve federal acquisition; (7) these efforts have focused largely on simplifying the process, particularly for buying commercial products and services, and on attempting to improve decisionmaking in acquiring information technology; (8) but despite recent reforms and the efforts of many dedicated people over the years, the government still does not have a world-class purchasing system; (9) all too often, many of the products and services the government buys cost more than expected, are delivered late, or fail to perform as anticipated; (10) no commercial business would remain viable for very long with results like these; (11) problems are particularly evident in the two areas where most of the dollars are spent: (a) weapons; and (b) information technology systems; (12) significant improvements in these areas--as well as in the skills of the acquisition workforce--are needed in order to produce better outcomes; and (13) GAO has made a number of recommendations over the years to improve acquisition outcomes, including the use by federal agencies of best commercial practices.