Ever since the HealthCare.gov website went live there has
been a never-ending string of frustrations and complaints with the website’s
inability to perform its job. This article highlights this was not really a surprising outcome as “94 percent of
large federal information technology projects over the past 10 years were
unsuccessful.” The article credits the HealthCare.gov’s and other government
technologies’ failures to the regulation surrounding the bid process for
contracting out these jobs.
Of
the types of regulation discussed in class, the article blames entry
restrictions on rivals as the cause of government technologies failures. With over 1,800 pages of legal code the
article points to the Federal Acquisition Regulation as the main regulatory barrier
claiming it “all
but ensure(s) that the companies that win government contracts… are those that
can navigate the regulations best, but not necessarily do the best job.”
Basically,
this regulatory code prevents smaller firms from entering the contract award
process because they cannot sift through all the regulation despite their
ability to build better technologies. The regulation serves as a barrier to the
government information-technology sector, ensuring the large firms who support
the regulation continue to win contracts, collect profits, and create poor
systems while new firms cannot break in to win contracts.
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