Why Government Procurement Costs Twice as Much

Government procurement is slow, expensive, and often broken. In this episode, Lucas and Luna explore a specific case: the US Coast Guard's Deepwater modernization program. Originally budgeted at $24 billion over 25 years, the program saw cost overruns of over 100 percent and delays exceeding a decade. They unpack why procurement is so costly — from the rules of the Federal Acquisition Regulation (FAR) to the perverse incentives in cost-plus contracting. They also discuss what happens when the government tries to bundle 100 different projects into one giant contract, and how that creates a 'too big to fail' dynamic for both contractors and the government. Finally, they touch on the Pentagon's recent push for 'other transaction authority' (OTA) as a way to speed things up — and whether that actually works. If you've ever wondered why your tax dollars buy so little, this episode offers a clear, concrete explanation. #GovernmentProcurement #PublicFinance #Economics #CoastGuard #DeepwaterProgram #CostOverruns #FederalAcquisitionRegulation #FAR #CostPlusContracting #DefenseSpending #OtherTransactionAuthority #OTA #Budget #Efficiency #FexingoBusiness #BusinessPodcast #LucasAndLuna #TaxDollars Keep every episode free: buymeacoffee.com/fexingo