REI Insights

From Bureaucratic Bloat to Brilliant IT: Why Government Must Go Product-First
March 11, 2025
Reading Time: 3 minutes

By Sheekha Khetan, REI Project Manager

Government technology is at a breaking point. While private companies harness continuous improvement—building digital products that adapt to user feedback and shifting needs—most government agencies remain shackled to outdated, project-based models. This disconnect isn’t just a technical glitch; it’s a roadblock stalling the public sector’s digital future.

The playbook is all too familiar: collect requirements, ink contracts, hit milestones, and call it a win. But the results? Systems that look good on paper yet crumble in practice—obsolete before they’re fully live, expensive to prop up, and maddening for citizens and staff alike. Without a way to evolve, these solutions don’t just fall short—they become liabilities.

This article kicks off a new series focused on how a product-centric mindset can reshape the way government agencies design, deliver, and sustain technology solutions. It presents a bold yet pragmatic path forward: transitioning from project to product mindsets can substantially improve government technology outcomes while optimizing resource allocation. Modern product approaches deliver both innovation and fiscal responsibility—a combination essential for effective government technology in today’s environment.

Over the next few posts, we’ll dive into topics such as how agencies can rethink procurement to support it and what it takes to execute product strategy across discovery, delivery, and beyond. Each blog will build on the last, mapping out a practical path for agencies to break free from outdated project-based approaches and deliver IT solutions that are flexible, cost-effective, and built to evolve with user needs.

The Project Mindset: A Recipe for Obsolescence

Government IT has mastered the art of delivering projects that check all the boxes while missing the point entirely. Consider these troubling realities:

Build for Compliance, Not Humans

When success hinges on contract compliance rather than user value, resources get funneled into systems that check boxes but fall short operationally, often needing costly rework or early replacement.

GAO findings suggest that agencies sank funds into spec-compliant systems that failed to boost efficiency, creating technical and resource hurdles that undermine mission success GAO (2023)

Accept Technical Debt as Inevitable

Government IT projects take 3.9 years on average, vs. 2.4 years in the private sector (McKinsey), driving up costs and delivering outdated tech. (McKinsey & Company (2022)

The VA Benefits System, built traditionally, needed expensive overhauls that continuous updates could’ve prevented GAO (2015). The GAO notes this inefficiency across agencies. GAO (2023)

Built Procurement Systems That Reward the Wrong Things

Today’s procurement setups reward finishing projects, not fixing problems. With over 80% of IT budgets tied up in propping up aging systems GAO (2023), agencies are stuck in a brutal bind: innovate or keep creaky infrastructure on life support.

Agencies aren’t blind to the issue—they’re boxed in. Clunky procurement rules consistently block smarter, more effective solutions from taking root.

The Product Mindset: A Framework for Operational Excellence

Moving to product-focused methods isn’t just a tech upgrade—it’s a game-changer for government operations. This approach rewires how agencies design, fund, and run digital services, squeezing out more value and efficiency at every step.

Core Principles of Effective Government Technology:

Direct Outcome Measurement

Success must be evaluated based on quantifiable improvement metrics rather than project milestones. This shift transforms how agencies assess value, focusing on measurable efficiency gains and service improvements rather than technical specifications alone.

Build for Evolution, Not Completion

Digital services must be architected as adaptable systems that evolve through incremental enhancement rather than wholesale replacement. This approach substantially improves resource utilization by extending system viability while continuously improving functionality.

Streamline Decision Frameworks

Effective product management requires decision velocity—the ability to quickly make and implement evidence-based improvements. By reducing bureaucratic approval chains, agencies can significantly reduce development cycles and accelerate value delivery.

Fund Outcomes, Not Deliverables

Funding mechanisms must directly align with measurable outcomes rather than deliverables. This realignment creates accountability for results rather than activities, fundamentally changing how government technology investments are evaluated and prioritized.

Demonstrated Efficiency Gains Through Product Approaches

Agencies that have implemented product-focused methodologies demonstrate that significant performance improvements and resource optimization are achievable within existing government frameworks. Here’s one example from REI:

NASA’s SBIR/STTR ProSAMS Platform: REI Systems’ Product Approach Success Story

NASA’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs demanded a proposal submission system that could flex and grow. Ditching the old-school project route, NASA teamed up with REI Systems to craft ProSAMS using a product-driven mindset.

This collaboration yielded remarkable results:

  • 90% improvement in processing efficiency
  • $1.99 million in annual cost savings for ongoing operations and maintenance, ensuring sustained efficiency and innovation
  • 88% reduction in non-compliant submissions

REI Systems’ implementation demonstrates that product approaches deliver not just technical improvements but measurable operational benefits through reduced processing times and improved service quality. The success stems from REI’s commitment to continuous improvement rather than one-time delivery—a fundamental shift from traditional project approaches.

Adopting product-focused strategies is only the first step in modernizing how government delivers technology solutions. To fully realize the benefits, agencies must also rethink the procurement processes that govern how technology is acquired, funded, and managed. Outdated procurement practices—designed for static, project-based work—often undermine the flexibility and responsiveness needed for product-focused approaches to succeed. In our next blog, we’ll dive into the critical procurement reforms necessary to support this shift, from funding structures to vendor selection criteria, all aimed at improving the government’s ability to deliver better services faster.