Summary: Federal spending for goods and services has changed dramatically in recent years. Although the Pentagon remains the government's dominant buyer, accounting for two-thirds of all federal acquisition spending last year, military acquisitions have fallen from their peak levels during the Cold War. On the other hand, spending by civilian agencies has risen somewhat. The government, as a whole, now spends more on services--from basic maintenance to space shuttle operations--than on supplies and equipment. The acquisition process has become more streamlined as new contract techniques have allowed agencies to buy what they need much faster than in the past. Congress and the administration have taken several steps to improve federal acquisition, focusing on ways to simplify the process and improve decisionmaking in acquiring information technology. Despite these recent reforms and the efforts of many dedicated people over the years, the government still lacks a world-class purchasing system. All too often, the products and services that the government buys cost more than expected, are delivered late, or fail to work as expected. No commercial operation would stay in business for long with results like these. The problems are particularly evident in two costly areas: weapons systems and information technology. Significant improvements in these areas, as well as in the skills of the acquisition workforce, are essential to getting better results.
