Innovation and Integrity: The Path to Government Software Procurement and Development

Within the vast ocean of the Canadian government’s expenditures, totaling 496 billion Canadian dollars last year, a relatively small wave has caused significant ripples. This wave comes in the form of millions of dollars in questionable billings by subcontractors, highlighted alongside the ongoing saga of the ArriveCAN app. Such issues illuminate the intricate and often problematic nature of government software development projects.

The ArriveCAN App Situation

At the heart of recent controversies stands the ArriveCAN app, developed hastily in 2020 as a tool for managing international travel during the Covid-19 pandemic. Karen Hogan, the auditor general, embarked on a mission to untangle the web of its development costs but ended up estimating around 60 million dollars spent on an app initially budgeted at a mere 2.3 million dollars. This stark discrepancy underscores the challenges and unpredictability of software development within governmental frameworks.

Tightening the Reins on Software Procurement

In response to these unfolding events, the federal government announced its intention to strengthen oversight of its procurement processes, especially concerning software services. Part of this initiative involved seeking the assistance of the Royal Canadian Mounted Police to investigate suspicious invoices totaling 5 million dollars from three software contractors, suspected of fraudulent activities unrelated to ArriveCAN. This move marks a significant step towards accountability and transparency in government contracting.

Jean-Yves Duclos, the minister responsible for public services and procurement, highlighted a pivotal shift from paper-based to digital contracts. This transition aims to curb fraudulent activities by making it easier to detect duplicate billing and enhance coordination among departments. By embracing digital solutions, the government seeks to fortify its defenses against the misuse of public funds.

The Middleman Dilemma

The ArriveCAN project shed light on the role of intermediaries in government software development. Companies like GC Strategies, which essentially served as a conduit between the government and the actual software developers, have come under scrutiny. Despite the significant sums involved, these middlemen claim a portion of the project’s budget for their coordinating efforts, raising questions about the value they add and the efficiency of such arrangements.

Software Outsourcing by the U.S. Government

In the United States, the process of utilizing custom software developers for government projects includes strict guidelines, modern methodologies like Agile, and strategic management to ensure effectiveness and efficiency. 

Centralized Guidelines and Management

The U.S. Office of Management and Budget (OMB) has set forth guidelines aimed at restructuring how federal agencies procure and manage their software licenses. This initiative is part of a broader effort to streamline software purchases across the federal government, fostering a more centralized approach to software management. This strategic move not only aims to simplify the procurement process but also seeks to leverage government-wide contracts that could potentially save significant amounts of money by sharing pricing and terms across different agencies. Such guidelines mandate immediate actions from CFO Act agencies to adopt contracts allowing them to share crucial pricing information and other details, enhancing transparency and reducing costs​ (FedTech Magazine)​.

Agile Software Development

The adoption of Agile methodologies in software development projects is another significant aspect of the U.S. government’s approach to procuring software development partners. Agile is renowned for its potential to save billions of dollars by delivering services more efficiently and effectively, emphasizing iterative delivery, collaboration, and the ability to adapt to changing requirements. This approach contrasts with more traditional, waterfall methodologies by allowing for frequent adjustments based on user feedback and changing needs​ (US GAO)​​ (US GAO)​.

The Government Accountability Office (GAO) has highlighted the advantages of Agile, including flexibility, risk reduction, and quicker deliveries, which align well with the dynamic and complex nature of government IT projects. Agile methodologies encourage collaboration across an organization and allow requirements to evolve as the project progresses, which can significantly reduce the risks associated with funding failing programs or outdated technology​ (US GAO)​.

Furthermore, the GAO has issued a draft Agile Assessment Guide designed to assist federal managers in adopting, executing, and managing Agile programs effectively. This guide, informed by IT acquisition and management concepts from both the public and private sectors, outlines best practices for Agile adoption, execution, and program control and monitoring. It aims to help government professionals, including Agile practitioners and program management office personnel, understand Agile processes and their application to federal IT projects​ (US GAO)​.

Emphasis on Strategic Procurement

The strategic procurement of software development services is also underpinned by initiatives such as the category management initiative launched by the Obama administration. This initiative aims to purchase government products and services, including software, in a more strategic manner. One notable directive restricts agencies from issuing new contracts for notebook and desktop computers, mandating the use of existing contracts to leverage government-wide volume discounts, reduce duplication, and increase transparency​ (FedTech Magazine)​.

A blend of centralized management, modern Agile methodologies, and strategic procurement initiatives characterize the U.S. government’s approach to procuring software development partners. These measures are designed to improve efficiency, reduce costs, and ensure that software development projects meet the evolving needs of the government and its constituents.

Rethinking Government Outsourcing

Daniel Henstra, a political scientist from the University of Waterloo, offers a critical perspective on the government’s reliance on outsourcing software development. This trend, he argues, not only complicates project management and increases vulnerability to fraud but also diminishes the government’s internal capacity for such tasks. Henstra’s insights suggest a need for a balanced approach that leverages external expertise without overly depending on it.

The Future of Government Software Development

While the ArriveCAN app and related fraud allegations represent significant challenges, they are not indicative of the overall state of government contracting. Henstra emphasizes that, for the most part, government relationships with contractors are productive and aligned with the public interest. However, these incidents serve as a reminder of the importance of vigilance, transparency, and continuous improvement in government procurement practices.

Concluding Thoughts

The journey through the government’s struggles with outsourcing software development reveals a landscape filled with challenges but also opportunities for reform and improvement. By addressing these issues head-on, the government can enhance its procurement processes, ensure the efficient use of public funds, and deliver better services to the public.