Outgoing Federal CIO Warns of 'IT Cartel' In DC
CWmike writes "In a wide-ranging discussion Friday with President Barack Obama's top science advisors, Federal CIO Vivek Kundra warned of the dangers of open data access and was sharply critical of government IT contracting, telling the committee: '...We almost have an IT cartel within federal IT' made up of very few companies that benefit from government spending 'because they understand the procurement process better than anyone else.' He added: 'It's not because they provide better technology.'"
Not any other area of federal contracting. No sir, this is exclusively an IT problem...
DAB-C innit?
Called the No-Shit-Sherlock Department. This would be a good example of an agency press release.
I don't know how many years on this Earth I got left. I'm going to get real weird with it. - Frank Reynolds
I believe that this aptly describes the problem.
Time to offend someone
In particular, Kundra is worried about the "mosaic effect," the unintended consequence of government data sharing, where data sets are combined and layered in ways that can strip away privacy and pose security threats.
Now granted he probably isn't concerned with the privacy of the individual citizen but that of government officials, but at least it sounds like there are some privacy concerns.
Time to offend someone
Set aside the procurement debate for a moment and let this one quote sink in. Three data centers is not enough to give each of the branches of the military its own dedicated data center for operations. There are five (technically) branches: Army, Navy, Air Force, Marine Corps and Coast Guard. Each one of those should have at least one "major data center" except maybe the Coast Guard.
Let's face it, Kundra doesn't appear to be any better than the very people he's criticizing.
I think you meant to say "very few companies that take taxpayers to the cleaners"?
I work for the Department of Redundancy Department.
"'because they understand the procurement process better than anyone else.' He added: 'It's not because they provide better technology.'""
This is another example of Regulatory Capture, where private entities use the regulatory process created for the public interest to forward their private interests.
Whenever we open up complex regulatory regimes (such as the incredibly insane Federal government procurement process, campaign finance regulations, etc.), inevitably someone will figure out how to game the system for their private benefit.
The best regulations are simple ones, as complexity breeds gaming. Complex regulations also encourage corruption on the government side as well.
Too many IT contracts are written with overly broad personell and systems security requirements, essentially requiring that the people working on these contracts originally coming from military or government offices to start with. Essentially built-in job security for those leaving government jobs.
Welcome to all government procurement of any sort. We have rules to prefer small businesses over big companies. So who gets this business? Not all the existing small businesses in town who know their product, can answer questions, keep stock on hand, are a generally helpful. They can't handle the bureaucratic overhead of government procurement.
Instead we have to buy from companies created for the sole purpose of being middle men to the government, whose only benefit is their understanding of the procurement process. Bonus points if they are owned by a woman or minority. They don't keep anything in stock, and add another 2-5 days to the shipping process compared to buying direct from the manufacturer. They are even more expensive than the local shops. They don't know what their products are used for and can only regurgitate what catalog in front of them says. But since they do so little they can turn over tons of revenue with only a few employees and thus remain a "small company".
trying to distance himself. ha if he had any real balls, he would have named names and gave clear examples.
So, the infamous 'HSPD-12 badge', aka, the 'CAC card' ...
Supposedly they run $200 each. We all got bitched at for it ... have I *ever* used it to slot into a computer? Nope, because our network runs OSes that don't support the CAC functionality, and a lot of the folks on our machines aren't federal employees and remote users, so we'd have to have them run a background check (which we already do), then come in (from out of the country), finger print 'em, wait a month, then have them come back for a badge.
And then we'd have to issue them CAC readers and force them to use Windows or some OS that can use the CAC readers (MacOS? nope).
And if you loose the badge? Well, good luck on that one. Took me months to get a replacement. All the while, I couldn't enter any secured rooms, so I had to get issues a 'temporary' key card, and a 'temporary' badge ... which were EXACTLY like what we had before, only not at $200 a pop.
And the temp badges? They have HUGE text on them for the things that matter -- expiration date (the HSPD12 badges run for 5 years, no matter the length of your contract), affiliation (just says 'Contractor' in tiny type), and has an indication of your security access more than just foreign national / US cltizen / civil servant (I'm guessing because then they'd have to issue new people badges 3-4 times as their various background checks get done).
So ... more expensive, no new functionality that actually gets used ... and less secure, in that it's possible to enter the facility with an expired badge because the text is so tiny the guards can't read it, and they don't tie badge expiration to your contract, so a person with 1 year on their contract still gets issued a 5 year badge.
Build it, and they will come^Hplain.
Seriously... this is as obvious as saying that banks make money by taking advantage of existing regulations. It's deplorable, but it's not exactly surprising.
It's a military, construction, health, fill-in-the-government-blank, problem.
General Dynamics, Raytheon, Boeing, Halliburton, etc provide a critical service: they understand government regulation. If you've ever seen a printed out copy of the Federal Acquisition Regulations, you'd be surprised that gravitational collapse isn't happening.
For most businesses, it's not worth taking a government contract until they're asking you to provide a COTS solution, where you know what you're selling, and the government pays you, and that's the end of it. The government is getting exactly what the commercial market gets. Firm Fixed Price contract, no surprises.
As soon as the government wants it customized in any way, and they're willing to pay you to customize it, that rabbit hole goes all the way down. Every stipulation of the contract must be assessed for compliance, and every assessment requires some kind of test, and every test has a schedule towards passage of the test, and every last one of these things costs time and resources, which means money, which the government is going to pay you, because the government wants its double cheeseburger in a way that no-one else wants it.
If you're an action oriented kind of entrepreneur, this will drive you insane. So you don't do it yourself. You go in as a subcontractor to one of the big Gov-BS-Handlers. You do the work, they firewall you from the BS, 50% for you, 250% for them (after change orders and spec changes and reviews and program management overhead) and everyone is happy with the $500 hammer (non-sparking, minimal toxic release, aircraft rated, 8 pound, loading bracket hinge, for the hitting of, one count)
Sure, we do that, but in the US we used to only open the envelope from Haliburton.
I wouldn't be surprised if he was actually talking about the proliferation of .NET contracts in the govt. After moving to DC from Seattle, I was surprised to see how prevalent .NET was in govt job listings. The problem with the .NET community is that it has too many overpaid and unqualified MCSE paper engineers, and for the govt to base its IT infrastructure on such tech is a big waste of money. The govt would do better to go open source.
Surly the the armed forces need more then ONE! I know there is only one Pentagon, And that simple fact implies; That the Pentagon is basically irrelevant! The .mil crowed may not be rocket scientists, But you can be damn sure; That none of those people, Will ever "put all their eggs in one basket", .mil history is filled with commanders that did just that, they even have a name for it; EPIC brain fart!
"Men will never be free until the last king is strangled with the entrails of the last priest." - Denis Diderot.
This is where the real government waste exists and this is exactly the sort of thing that will never be addressed. Instead useful programs are cut wholesale because that's what makes the most visible impact to your average ignorant voter.
The article did not name those companies that are in the IT Cartel. Let me start it off with the ones I know.
1. IBM
2. Accenture
3. Booz Hamilton
4. Deloitte
5. SAIC
6. HP
7. CACI
8. CSC
Why do they win all the IT contracts? They have huge staffs dedicated to understanding the myriad of procurement rules. The little guys don't stand a chance.
Can you name some more.
United States Public Health Service Commissioned Corps
National Oceanic and Atmospheric Administration Commissioned Corps
Shouldn’t all uniformed branches get their own data center? ;-)
1. Make the laws on government bidding so complex that very few CAN understand them. Requires power.
2. Grease the skids to overcome the inevitable subjectivity inherent with people trying to interpret complex rules (crony capitalism). Requires money.
3. Shazam! You win the bidding process.
telling the committee: '...We almost have an IT cartel within federal IT' made up of very few companies that benefit from government spending 'because they understand the procurement process better than anyone else.' He added: 'It's not because they provide better technology.'"
What do you expect to get when you take all the proposals for a contract and order them by cost. Then starting with the lowest bid, see it is meets the minimum requirements on the RFP. If so, end process and award contract. The other proposals are not even looked at. Also, most of the RFPs are written by people that do not truly know what the requirements should be so they make the requirements very general and open to interpretation.
So with this recipe for disaster, how can anyone truly expect to get anything but the bare minimum.
Now think about wasted money. Wasted money is not cash burnt in the fireplace. It is just money spent, without adequate or reasonable return. For the counterparty to that transaction that money is unearned revenue, undeserved profit. When you say government is wasting 300 billion dollars, it represents 300 billion dollars of unearned undeserved income to people. They would fight tooth and nail to keep that breach open. They would not let those loopholes to be closed, the procedures to be mended. The looters are also actively aided and abetted by the congresscritters. That is why it is so difficult to cut down the waste and fraud in the government.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
Rate this DOWN. This is utter bullshit, just look at the replies
The outgoing CIO has evidently never had to experience the morass that is the Government IT procurement process.
DADMS, IT approval, PID/PR, sole source justifications to name a few. Approvers who build empires an can send procurements back to the starting line at a whim. The process that began to prevent waste, fraud, and abuse now costs a minimum of an additional $2 for every dollar spent for the actual purchases.
Small IT support groups in the trenches simply do not have the time to spend on the convoluted procurement process. They are busy trying to keep their respective groups operating while trying to fufill the seemingly endless security requirement that are levied without resources with which they can be accomplished. Therefore procurement is outsourced so that purchases can be made in a more expeditious manner.
A need is there and contractors have jumped in to fill that need. It is the nature of business. IF they want to save some money, streamlining the procurement process is a good way to start. Streamlining does not equal adding yet another database or layer of process though.
They set the playing field with the contracting offices - want to break the cartel, make the contracting office simpler and more efficient, instead of this the CIO blames the government's own process - nice...
How come I read this line "In a wide-ranging discussion Friday with President Barack Obama's top science advisors" as "In a wide-ranging discussion Friday with President Barack Obama's top science-fiction advisors"?
This guy is suggesting that Federal Procurement isn't a process of objective evaluation where the best(as in most appropriate to requirements) products, services, and vendors are selected? What you say its system or rigged bids? You mean evaluation criteria is not select to best represent operational goals but instead to ensure a preferred vendor gets the contract? Wow crazy, never would guess that from casual observation of the past 40+ years of US history....
I am so glad we hire these qualified public servants with their first rate insight to warn us of these dangers.
Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
made by companies that are part owned by the People's Liberation Army ?
im sure they didn't put any hardware backdoors in. nah.
if i am not mistaken.
and he is right.
when your local news says 'anti-terrorism operation happened today on the freeway, many trucks stopped', you might blow it off.
when you read a bunch of websites about what a VIPR team is, read its budget, read the congressional criticisms of it, then you starting getting antsy about it.
TRAILBLAZER
the New York City thing
etc etc etc.
did i mention that SAIC and NSA senior officials flip back and forth between working for the company and working for NSA?
We don't need Congress.
With the proliferation of Internet and Cell phones people can make informed decisions and can directly vote on Bills and make/change Laws.
Add to this the people problem. Everyone I ever dealt with in the department I supported was extremely unskilled and ignorant of the knowledge they needed to know to do their job. I know for a fact that work days are short, especially Fridays and thanks to web monitoring software, I know most of the employees only spend about an hour a day of actual work. Now put this sluggish, ignorant person in charge of making a technical change to an application, a server or god forbid, a whole data center. Top it off with the IT barrage of regulations and procedures (SOX, ITIL, ISO, etc.) and you have the epitome of steering a huge ship with a small wooden paddle.
In the three years I supported them, I only ever saw one major implementation of new equipment, one successful disaster recovery exercise and multiple misses of the DNS SEC implementation.
With my inside knowledge I have no faith in our government in any department. I'm surprised ANYTHING gets done ever. Except, of course, pay raises. Those happen immediately, without fail and completely without merit.