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… pic.twitter.com/1OZn8DDTrL
— Department of Government Efficiency (@DOGE) March 21, 2025
IRS runs like a mid-sized bank but spends $3.5B on O&M—80% to contractors.
The IRS has the transaction volume of a mid-sized bank, running similar infrastructure. Those banks typically have an Operations and Maintenance (O&M) budget of ~$20M/yr.
The IRS has a ~$3.5B O&M budget (which doesn’t include an additional $3.7B modernization budget). ~80% of…
— Department of Government Efficiency (@DOGE) March 21, 2025
