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There are similar analogs in private sector such as the massive prevalence of COBOL and IBM mainframes in even technology-heavy sectors like finance. Factors a
by devonkim 10y ago
There are similar analogs in private sector such as the massive prevalence of COBOL and IBM mainframes in even technology-heavy sectors like finance.
Factors affecting public sector that private industry typically doesn't face typically, though, is that most federal contracts basically mean that the entire supply chain must be "Made in America." When the federal government buys something, they want to have as much of it made by US citizens on US land and with US investors unless there's no viable alternative that meets criteria (there's hardly any fabrication facilities in the US, for example). Outsourcing labor and not owning as much of your supply chain is profitable. The federal government operates somewhat similar to the Carnegie model of vertical integration in the classic sense. Obviously, this does not hold very well in today's business environment except for a select few companies (Apple being the notable one) because cost models are so different.
There are accountability, alignment, and bureaucracy problems across the Fortune 100 aplenty even excluding the parts that sell to the federal government. It's tough to scale organizations as behemoth as large as the Fortune 10, I don't see how the federal government's millions of workers and perhaps even more millions of contractors are any easier.