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Leadership as the Root of Government IT Dysfunction
Understand why leadership is the 'upstream' cause of IT system dysfunction in government. The speaker emphasizes the importance of stable, technical, career civil servant leadership, citing examples of well-run entities with leaders who prioritize finding and retaining technical talent, demonstrating that good leadership leads to good teams and effective outcomes.
Demystifying DOGE: Sam Corcos's "Doge Adjacent" Role and Executive Order Powers
Sam Corcos clarifies his relationship with the Department of Government Efficiency (DOGE), explaining that he was brought in directly by the Treasury Department despite being 'Doge affiliated.' He details how the DOGE executive order established the office and granted specific authorities, particularly the power to review government contracts, enabling significant oversight.
From Million-Line Coder to Treasury CIO: Sam Corcos's Technical Background
Sam Corcos shares his extensive technical background, highlighting over a decade as a software developer and contributing 'about a million lines of production code.' This context underscores his unique qualifications for the Chief Information Officer role in the Treasury Department, contrasting with the historically non-technical government CIOs.
DOGE's Biggest Blunder: Not Communicating Enough
Sam Corcos reflects on the Department of Government Efficiency's (DOGE) biggest mistake: a lack of transparent communication. He explains that a 'them and us' media narrative emerged due to secrecy, despite most people agreeing with DOGE's priorities when informed, underscoring the importance of optics and public engagement in government reform.
The Surprising Truth About What the IRS Actually Does
Sam Corcos reveals the common misconception about the IRS, explaining that it primarily functions as a software company managing ledgers, not directly collecting most taxes. He contrasts it with the Bureau of Fiscal Service and uses analogies to Stripe and QuickBooks.
The 'Amish Problem': Why Tax Code Changes Are So Complex
Sam Corcos uses the humorous 'Amish problem' to illustrate why changing the tax code is incredibly slow and complex. He explains that the first 80% of the work is easy, but the 'second 80%' involves accounting for every single edge case, from blind and deaf individuals to those without computers or social security numbers, affecting a vast number of diverse people at scale.
The Broken Government Procurement System
Discover how the US government's procurement system is 'totally and utterly broken,' leading to disastrous outcomes. Learn about the 'black box' process where engineers lose control over vendor selection, often resulting in random, subpar choices for critical projects.
Mainframes: Misunderstood 'Legacy' Systems & Their Value
The speaker challenges the negative perception of mainframes as inherently 'bad' or 'legacy' technology. He explains that while the IRS defines 'legacy' as anything over 25 years old, many mainframes are battle-tested, perfectly functional, and even optimal for specific tasks like batch data processing, which the IRS frequently performs, advocating against automatic replacement of old but effective technology.
The Littoral Combat Ship: A Billion-Dollar Example of Congressional Dysfunction
Sam Corcos illustrates how congressional influence leads to wasteful spending, using the infamous Littoral Combat Ship as a prime example. He explains how a simple, inexpensive ship concept became a 'completely pointless outcome' – a large, expensive vessel that no longer served its original purpose, due to politicians insisting their districts' products be included.
The Endless Cycle of Vendor Failure in Government Modernization
The speaker details a persistent problem in government: the recurring cycle of allocating billions to vendors for modernization projects that inevitably fail or fall years behind schedule. This leads to agencies continuously replacing one failed vendor with another, without addressing underlying systemic issues, perpetuating inefficiency and wasted resources.
Fixing Government Tech: It's About Leadership and Culture, Not Just Systems
Sam Corcos argues that improving government technology is less about specific software fixes and more about organizational change, management, and leadership. He emphasizes the need for technical CIOs, more engineers, and a shift from outsourcing problems to vendors to fostering an internal culture of continuous, incremental software improvement, like 'feeding a puppy,' rather than ignoring systems for decades.
From Deep Focus to Constant Meetings: Sam Corcos's Government Work Shift
Sam Corcos details the drastic shift in his work style since joining the government. Previously optimizing for 5-8 hours of uninterrupted deep focus, he now finds himself with 'multiple phones' ringing constantly, '6 to eight hours of meetings every day,' and has accepted he won't get much focused time, illustrating the intense demands of his new role.
"I'm Just There to Fix the Computers": Navigating a Political Role with Bipartisan Support
Sam Corcos explains the functional difference between a political appointee and a career civil servant, noting the appointee's vulnerability to being fired. He then shares his comfort with stepping into a 'political position,' highlighting that the need for functional IT systems and a better government transcends political divides. He found bipartisan support for his mission, realizing that people simply want someone competent to fix the problems.
The Flawed Concept of 'Modernization' in Software
The speaker argues that 'modernization' in software, particularly in government, is a flawed concept stemming from a fundamental misunderstanding of software development. He uses the analogy of building a house versus raising a puppy to explain that software systems are 'living systems' requiring continuous maintenance, updates, and feedback, not a one-time 'build it and forget it' approach.
Making Government Changes Permanent: 'Pulling the Roots' and Legislative Fixes
Sam Corcos emphasizes the challenge of making government reforms permanent, likening it to 'making sure the weeds don't grow back.' He reveals a 'surreal experience' where external perception sees slowing momentum, but internally, they're 'only just now starting to understand how to affect these systems in a way that will be permanent,' requiring fundamental changes to procurement, personnel, and even legislative action from Congress.
Why I Joined the Government: From Tech CEO to Treasury CIO
Sam Corcos shares his unexpected journey into government service, his long-held desire for public service, and the encouragement from his wife that led him to become the Chief Information Officer of the Treasury Department. He initially assumed such a role would come later in his career, but seized the opportunity to contribute to the future of the country, particularly regarding the national debt.
The Core Flaw: Non-Technical CIOs in Government
Sam explains that a major problem in government IT, specifically the CIO role, stems from a lack of technical standards and requirements, leading to non-technical individuals making multi-billion dollar technology decisions.
The 'Doge Hackathon' That Never Happened: How Fake News Impacts Government
Hear a frustrating account of how a productive strategic planning session at the IRS was misreported by Wired magazine as a 'Doge hackathon.' The speaker explains how this 'completely made up' story led to persistent inquiries from Congress and internal confusion, illustrating how media misinformation can create false narratives that directly impact government operations.
The Hidden Cost of Government Service: Why Top Talent Leaves
Sam Corcos discusses the significant personal sacrifice involved in taking a government leadership role, especially for those in their 'peak earning years.' He explains that the opportunity cost and the need to relocate often mean only the very young or those near retirement can afford to serve, leading to a 'brain drain' of capable individuals and a potential detachment from the lives of average constituents.
Doge's Biggest Blunder: The Optics Game and Secrecy
The speaker identifies Doge's biggest mistake as a lack of transparency and failure to engage more people in their work, which fostered a negative 'them and us' media narrative. He argues that despite the engineers' goals aligning with public desire, their 'degree of secrecy' and poor optics overshadowed their achievements, underscoring the critical importance of effective communication in government.
The Absurdity of Value Added Resellers in Government
Explore the 'absurd' government practice of using Value Added Resellers (VARs) to create 'fake auctions' for essential software licenses like Adobe or Figma. VARs take a cut without providing value, simply to satisfy competitive bidding requirements for products that are not truly competitive, highlighting a deeply flawed procurement system.
The Myth of 'Tight Budgets' in Government
Challenge the common phrase 'budgets are tight' in government. The speaker argues that while overall budgets are 'astoundingly large,' the real issue is that bureaucratic overhead and complex procurement processes prevent spending money on important things efficiently. He gives an example of spending a million dollars to set up a contract for a mere $10,000 expense, highlighting how 'everything is at least medium hard' in government.
Vendor Lock-in and Disparate Systems in Government
The speaker illustrates how cutting spending can improve government operations by reducing competing vendors and fragmented IT systems. He explains that vendor incentives often lead to custom, locked-in solutions, creating 'archaeological evidence' of disconnected systems, like the IRS compliance team's 60+ non-communicating systems.
The IRS's Broken Technical Hiring Process: No Technical Interviews
Discover the shocking reality of technical hiring at the IRS, which has suffered from 'poor technical leadership for roughly 40 years.' The policy has been to forgo technical interviews, relying solely on resume review. This leads to the absurd situation where you 'have to hire five [engineers] because you just don't know what you're going to get' due to a lack of scrutiny.
Engineering is for Engineers: Reforming the IRS Org Chart
Witness a controversial but necessary reform initiative at the IRS: recomposing the engineering organization based on the memo 'Engineering is for Engineers.' The speaker explains the goal is to move non-engineers out of engineering roles and bring in actual technical talent, a 'tautology' in the private sector but a 'very controversial' move in government where most people in these roles are not engineers.
The HR Black Box: Why Engineers Can't Hire in Government
Experience the frustrating reality of government hiring where engineers are completely excluded from the process. Non-technical HR personnel write job descriptions, screen candidates, and make qualification decisions based solely on resumes, leading to a 'black box' where engineers receive pre-selected packets without any input, severely hindering the ability to hire qualified technical talent.
The Scarcity of 'High Agency' in Government
The speaker contrasts the prevalence of 'high agency' individuals in the private sector with their scarcity in government. He describes the frustration of dealing with government employees who consistently fail to deliver on tasks, pondering if it's malice, incompetence, or the inability to be fired, and stresses the vital importance of identifying and retaining those rare individuals who actually get things done.
The Misleading Math of Government Savings
The speaker uncovers the complex and often inaccurate methods used to calculate 'savings' in government contracts. He explains how various contract types and cancellation rules obscure the true amount saved, and how pervasive poor data quality makes precise calculations 'effectively impossible,' leading to a significant underrepresentation of fiscal efficiency.
The IRS Budget: A Six-Week Quest for Clarity
The speaker shares a personal anecdote about his frustrating six-week struggle to get a clear answer on the IRS's budget. This story vividly illustrates the profound lack of data quality and transparency within government agencies, even for fundamental financial information, highlighting a critical systemic issue.
Why Official Government Savings Figures Are Misleading
The speaker clarifies why official government 'savings' figures and related media reports often misrepresent the true impact of fiscal efficiency. He explains that only money from signed contracts not yet disbursed is counted, excluding canceled solicitations or broader spending reductions, leading to a conservative and inaccurate portrayal of money saved.
Government Cuts: A Scalpel, Not a Chainsaw
The speaker emphasizes that high-stakes organizations like the IRS and SEC require extreme caution when cutting spending due to the potential for 'significant market moving effects' from mistakes. He advocates for a 'scalpel, not a chainsaw' approach, involving diligent, line-by-line review of every contract to assess risk, contrasting this with initial leadership resistance that claimed everything was critical.
The Flawed 'Reduction in Force' Process in Government
The speaker explains the 'reduction in force' (RIF) process, the only mechanism for sizable staff reductions in government. Unlike the private sector which targets low performers, government RIFs are based on tenure and veterans preference, almost guaranteeing that the youngest and often top-performing employees are cut. This contributes to the lack of young talent and hinders efficiency within government agencies.
Trading Up the Chain: How Media Creates False Narratives in Politics
Learn about Ryan Holiday's concept of 'trading up the chain,' where half-truths and implications become perceived reality in media. The speaker illustrates this with the 'Doge hackathon' story, explaining how it implied 'Silicon Valley degeneracy' and led to false affiliations, demonstrating how narratives are built on top of initial suggestions.
Why 'Modernization' is a Flawed Concept for Government Software
Sam Corcos critiques the government's approach to 'modernization' in software, explaining that unlike building a house, software systems are living entities requiring constant maintenance and updates. He details how the current practice of funding one-time builds and then abandoning them leads to a proliferation of disconnected, legacy systems.
The Root Cause and Cost of 'Shadow IT' in Government
The speaker explains how the historical failure of central IT functions in government agencies fosters 'shadow IT.' Individual teams, losing confidence in central IT's delivery, create their own secret IT groups and custom products, leading to hyper-fragmentation and severe downstream problems that undermine overall organizational effectiveness. Making central IT functional is crucial for solving these issues.
Stepping into the Unknown: Expectations for Change in Government
Sam Corcos discusses his initial entry into government via DOGE, his primary focus on IRS modernization, and his prior expectations. He highlights a key encouraging factor: the administration's unprecedented willingness to implement significant structural changes, a departure from historical practices of merely 'shuffling things around.'
DOGE 'Infants' vs. Founding Fathers: Challenging Government Inertia
Sam Corcos addresses the accusation that DOGE's young engineers are 'infants,' drawing a parallel to the age of the Founding Fathers. He argues that their youth is perceived as a weakness by an older governing class, but their true role is to challenge decades of calcified institutions and inertia, often finding that many 'rules' are not laws but simply long-standing habits.
Uncovering the 'Giant Ball of Worms' in Government Agencies
Sam Corcos reveals how initial investigations into government agencies, like USAID, often start with identifying problems but quickly lead to the realization that entire organizations are fundamentally flawed, becoming a 'giant ball of worms' that need more than just minor fixes.
How Congress Ruins Military Projects: The Lateral Combat Ship
Sam Corcos shares a classic example of government inefficiency: the US Navy's Lateral Combat Ship. Intended to be a lightweight, inexpensive vessel, it became large, expensive, and pointless as congressional districts insisted on adding their locally manufactured components, illustrating how political influence can derail critical projects.
The Problem with Government CIOs: Why They're Often Non-Technical
Sam Corcos explains the historical evolution of the Chief Information Officer role in government, tracing its origins to a 'librarian role' for filing cabinets. He reveals how the lack of updated technical standards and requirements led to most government CIOs being non-technical, contributing to significant IT challenges. He contrasts this with other government roles, like chief counsel, which have clear professional requirements.
The Human Side of Government Reform: Empathy for Non-Technical Leaders
Sam Corcos shares his empathy for the 50 IRS IT leaders placed on administrative leave, revealing that many understood their own lack of technical expertise and the impact on decision-making. He explains that tenure-based promotions and inflated performance reviews often lead good, hardworking people into roles where they cannot succeed, contributing to systemic problems within the government.
America's $37 Trillion Debt Crisis: A Runaway Effect
Sam Corcos reacts to the statistic of America having the fifth-highest government expenditure per capita. He emphasizes that while high spending might be theoretically acceptable, the current national debt, standing at $37 trillion and increasing at $100,000 per second, has reached a critical, 'runaway effect' point that demands immediate control.
Inside Government: "Cover Your Ass" Culture vs. Courageous Leadership
Sam Corcos offers an insider's perspective on government operations, confirming the prevalent 'cover your ass' culture where decisions are made by committee to avoid blame. He then provides a contrasting example: how courageous leadership, specifically the decision to place 50 IRS IT leaders on administrative leave, led to immediate and dramatic improvements, with projects stuck for years being delivered in weeks.
The Core Problem of Government: Why You Can't Fire Bad Employees
Sam Corcos identifies the fundamental challenge in government that distinguishes it from large corporations: the severe limitations on changing staff. He recounts an anecdote of a former CEO struggling to implement change because, unlike in the private sector, government leaders 'can't fire the people who are not good.' This highlights a critical barrier to efficiency and reform, making government unique in its challenges.
Executive Orders are NOT Self-Actualizing: The Shocking Inertia of Government
Sam Corcos shares his biggest surprise about working in government: the extreme inertia, contrasting sharply with his private sector CEO experience. He explains how even presidential executive orders or secretarial directives are often ignored, requiring constant 'hounding' to implement. He cites the 'Do Not Pay' policy, intended to prevent payments to fraudulent bank accounts since 2013, as an example of a policy that simply failed to materialize, concluding that 'executive orders are not self-actualizing.'
UK Government Tech Failures: Windows XP, Faxes, and Paper Policies
Chris Williamson shares several eye-opening anecdotes from Dominic Cummings about the staggering technological backwardness and bureaucratic inertia within the UK government. Examples include COVID figures being manually written on whiteboards, consultants taking years and millions to decide on cloud storage, the NHS running on Windows XP until 2020 leading to ransomware attacks, and the UK rail system still famously relying on fax machines.
The Government's Broken Budget: Billions for Vendors, Pennies for Engineers
Sam Corcos exposes the 'core incentive misalignment' within government contracting. He reveals that while decision-makers have vast budgets and are not spending their own money, leading to a perception that 'nobody cares, nobody's paying attention,' the IRS gladly spends hundreds of millions on vendors. This is contrasted with the inability to pay internal engineers market rates due to 'weird statutory things,' creating a highly inefficient and wasteful system.
Why Top Tech Talent Avoids Government: $160k for $10 Billion Responsibility
Sam Corcos highlights a critical systemic issue: the Chief Information Officer role, responsible for billions in annual spending, is paid only around $160,000 a year with strict limitations on other income and public financial disclosure. This compensation structure, combined with internal, non-technical promotions, discourages highly experienced tech leaders from taking these vital roles, leading to a long history of 'very bad decisions' in government IT.
The CIO's Internal Struggle: Saying No to $35 Million for an "Ambiguous Win"
Sam Corcos details the profound financial sacrifice required for top government tech roles, where leaders are essentially told to 'burn down a lot of your savings.' He advocates for industry-average compensation to attract and retain dedicated talent, as CIOs often earn less than their own engineers. He recounts a personal struggle: saying no to an unnecessary $35 million contract, acknowledging the internal temptation to approve it to avoid conflict, highlighting the critical need for leaders who 'care enough to be willing to make those hard calls' for the taxpayer's benefit.
Government Salary Caps & Contractor Arbitrage
Uncover how government salary caps hobble the ability to hire top technical talent. The speaker reveals a system where agencies pay contractors up to $500,000 to 'funnel' $250,000 to the desired person, with contractors arbitraging the difference. This perverse incentive structure highlights a major flaw in government staffing.
The IRS's Half-Billion Dollar Paper Processing Waste
Hear a shocking example of government waste: the IRS spends half a billion dollars annually on paper processing, despite readily available commercial digitization vendors. The speaker describes a gigantic warehouse in Kansas City overflowing with paper, leading to months or even years of backlog, illustrating a clear path to massive savings and efficiency.
Million-Dollar-a-Day Delays: The Contested IRS Procurement Process
Follow the maddening saga of an IRS initiative to eliminate paper processing. A simple vendor selection is repeatedly contested, stopping the process for months and costing over a million dollars a day. This example vividly illustrates how bureaucratic rules and constant challenges paralyze essential government projects, even when the solution is obvious.
The $20 Million Software No One Ever Used: A Government Waste Horror Story
Listen to a shocking anecdote about a government agency paying $20 million annually for 5-10 years for a piece of software whose licenses were never activated or used. This contract was repeatedly renewed as 'mission critical' by people who didn't know its purpose, blurring the lines between waste, fraud, and abuse.
The Missing Feedback Loop: Why Government Never Dies
The speaker argues that the fundamental flaw in government is the absence of a natural feedback loop, unlike the private sector. Citing FDR's concerns about public sector unions, he explains that without market forces or consequences, there's no inherent check against inefficiency or excessive demands—'the government won't [die]. You can just demand more. You can just work less.' This leads to ever-growing debt and cumbersome rules.
IRS Has 108 Competing 'Sources of Truth'
Sam Corcos reveals the shocking extent of data fragmentation within the IRS, where different departments rely on over a hundred competing systems that don't communicate, leading to fundamental data quality issues and hindering basic operations like knowing a person's current address.
The Perverse Incentives Destroying Government Cyber Security Careers
Sam Corcos exposes the dysfunctional incentives facing Chief Information Security Officers (CISOs) in government. Unlike the private sector where discovering a breach is celebrated, in government, finding an existing breach under your watch can destroy your career, leading to a system where crucial security problems are actively discouraged from being found or fixed.
The IRS is a Software Company, Not a Tax Collector
Sam Corcos explains the surprising core function of the IRS, clarifying a common misconception. He reveals that the IRS primarily operates as a software company, akin to QuickBooks, focused on reconciling financial data, while the Bureau of the Fiscal Service (like Stripe) handles most tax collection.
US vs. Estonia: The World's Most Complex Tax System?
Sam Corcos contrasts the U.S. tax system, which he believes might be the most complex in the world, with Estonia's incredibly simple flat tax where the average person spends only 2 minutes a year on taxes. He highlights the massive disparity in complexity and efficiency.
The Absurdity of Tipping an Automated System and Tax Policy
The host recounts a humorous and thought-provoking experience of an automated corner shop asking for a tip, leading to the question: 'Who the f*** am I tipping?' Sam Corcos confirms this is exactly the kind of complex edge case the IRS's tax policy experts have to grapple with, highlighting the intricate realities of tax implementation.
The IRS's Nightmare: 'Worst ATO Process' and 20-Year-Old Code Editors
Sam Corcos exposes the severe inefficiency within the IRS's technology infrastructure, specifically detailing their 'Authority to Operate' (ATO) process. He claims it's 'probably the worst' in the government, taking years to authorize simple tools, forcing engineers to use code editors from two decades ago.
The Impossible Balancing Act: From Tech CEO to Government Service
Sam Corcos shares the intense reality of his transition from CEO of Levels to a government role, admitting he did a 'very poor job' trying to balance both. He recounts the stress of having the 'White House calling' during leadership meetings, ultimately leading his co-founder to take over Levels so he could fully commit to public service, highlighting the immense demands of government work.
The 'Peak Earning Years' Problem: Why Government Struggles to Attract Top Talent
Sam Corcos identifies a critical challenge in government talent acquisition: the 'peak earning years' problem. He explains that the high opportunity cost and need to relocate to DC make it difficult to attract highly capable people in mid-career, leading to a brain drain. Only the very young (with no expenses) or those near retirement (doing 'public service' as a 'retirement project') are typically willing to take on leadership roles, creating a significant talent gap.
IRS Modernization: Always 5 Years Away (Since 1991)
Sam Corcos reveals the shocking perpetual state of the IRS's IT modernization project, which has been '5 years away' since 1991, is $15 billion over budget, and started around the time he was born.
The Unprecedented Move: Replacing 50 IRS IT Leaders
Sam recounts the bold, unprecedented decision to put the entire 50-person leadership team of IRS IT on administrative leave and replace them with technical experts, highlighting the courage required for such structural change.
IRS Receives 60 Million Faxes Annually on 50,000 Fax Lines
Sam highlights the shocking reality of the IRS's continued reliance on fax machines, receiving 60 million faxes per year across 50,000 active fax lines, despite cybersecurity experts confirming it's no longer a secure method.
The Inverse: Government IT's 1:10 Engineer-to-Manager Ratio
Sam exposes the dramatic inefficiency in government IT, where the ratio of engineers to non-engineers is roughly 1 to 10, the inverse of a typical tech company's 5:1 or 10:1 ratio, due to layers of management and bureaucracy.
Why Government is a 'Soft Touch' for Price-Gouging Contractors
Sam explains why government entities are seen as a 'soft touch' by contractors, who exploit the lack of negotiation and accountability. Historically, officials in his position rarely say no to inflated prices, simply checking if it's within budget and signing off.
The CIO's Ethical Dilemma: Saying No to Wasteful Spending
Sam describes the internal struggle of a government CIO, where saying no to a $35 million unnecessary contract leads to upset colleagues and an ambiguous win for taxpayers, while saying yes would make the problem disappear with no personal repercussions. He emphasizes the need for leaders who truly care.
$1 Million a Day Lost: The IRS's Paper Processing Debacle
Sam Corcos details an absurd example of government inefficiency at the IRS. An initiative to eliminate paper processing, which costs half a billion dollars annually, is stalled indefinitely due to a broken procurement system. The competitive bidding process for external digitization vendors is repeatedly contested, leading to delays that cost over a million dollars per day, with "nobody caring" due to strict adherence to process.
The Absurdity of Government Procurement: Fake Auctions for Software Licenses
Sam Corcos exposes a "ubiquitous" and absurd practice in government procurement: the use of Value Added Resellers (VARs). To bypass the requirement for a competitive bidding process for specific software licenses (e.g., Adobe, Figma) that cannot be directly competed, agencies find multiple VARs who all resell the exact same license. These VARs then "compete" on price, taking a cut off the top without providing any actual value, simply to create the illusion of a competitive process.
"A Huge Scam": How the 8A Program Costs Taxpayers Billions Annually
Sam Corcos uncovers what he calls a "huge scam" within the Small Business Administration's 8A program, designed for small disadvantaged businesses. This program allows agencies to skip the competitive bidding process and directly select vendors, but it's capped at $25 million. He notes a prevalence of contracts awarded at $24.9 million, indicating a loophole. These contractors often take 10-50% off the top without performing the required 51% of the work, funneling money instead. He estimates this "graft" could be as high as $30-80 billion a year.
"Engineering is for Engineers": Battling Bureaucracy to Hire Technical Talent in Government
Sam Corcos shares his ongoing battle to reform the IRS's engineering department. He's drafting a controversial memo titled "Engineering is for engineers" because many people in engineering roles are not actual engineers. The hiring process is severely flawed: HR, not engineers, writes generic job descriptions, posts them, and assesses candidate qualifications without technical capability. Engineers only see a packet of PDFs of "qualified" candidates, completely cut out of the initial screening. He's actively working to empower hiring managers to participate in hiring their own engineers.
The Fundamental Flaw: Why Government Lacks a Feedback Loop
Sam Corcos explains a core reason for government inefficiency: the absence of a natural feedback loop. Unlike the private sector, where companies can fail if they demand too much or become inefficient, the government doesn't face this existential threat. He cites FDR's opposition to public sector unions, arguing that without a counterbalance, unions can demand more and work less, leading to growing debt and no inherent force to push against inefficiency. This lack of a natural incentive structure means government inherently struggles to prevent "bad things" from happening.
The IRS's 108 Competing Sources of Truth: A Rube Goldberg Mess
The speaker unveils the shocking reality of data management at the IRS, where a foundational software principle of a 'single source of truth' is ignored, resulting in 108 competing sources. He describes a 'complex Rube Goldberg' system where finding basic information like a current address requires checking multiple, disconnected places, leading to lost data and severe integrity problems—a systemic issue neglected for decades.
The Absurdity of IRS Digital Correspondence
The speaker exposes the archaic and frustrating process of interacting with the IRS, where physical letters necessitate responses via fax or certified mail, leading to month-long feedback loops. He highlights the urgent need for basic digital correspondence, allowing citizens to view and respond to notices online, which is currently non-existent and contributes to the 'mess' of government services.
The 'Build It and Forget It' Software Disaster: How the IRS Got 108 Systems
The speaker exposes the disastrous 'build it and forget it' approach to software development in the IRS: spending billions once on a tool with an explicit directive to 'never touch it again.' This leads to a continuous cycle of building 'new' systems to replace 'legacy' ones, which actually results in a proliferation of disconnected systems (like the IRS's 108) and a 'total mess,' rather than true modernization.
Government's Cybersecurity Recruitment Crisis: A National Security Risk
The speaker highlights the severe challenge of recruiting senior cybersecurity engineers for government roles, primarily due to extremely low salary caps (e.g., $85,000 for a UK head of cyber security). This makes government cybersecurity positions unattractive and vulnerable, as the compensation is a 'rounding error' compared to what hostile nations or private industry can offer, creating a significant national security risk.
The Career-Killing Reality of Being a Government CISO
The speaker reveals the perverse incentive for Chief Information Security Officers (CISOs) in government: discovering a major cyber breach, even if it occurred before their tenure, is a career-ending political liability, not a heroic act. This contrasts sharply with the private sector, where such a discovery would lead to praise, making the government CISO role incredibly risky and difficult to fill.
Challenging the 'Infant' Perception of Young Government Innovators
The speaker refutes the perception of young government innovators as 'infants' or 'vibe coding' amateurs. He highlights that the US Founding Fathers were also in their early to mid-20s, emphasizing that these young Doge engineers are 'extremely smart people' thoughtfully challenging calcified institutions. He attributes the 'infant' perception to the generational gap with the typically older governing class.
Why Tax Code Changes Are So Hard: The 'Amish Problem'
Sam Corcos explains that interpreting and implementing new tax laws is incredibly complex due to numerous 'edge cases.' He uses the example of 'What about the Amish?' as a placeholder for all the diverse scenarios—like people without computers—that must be accounted for when making any change, highlighting the immense scale of government problem-solving.
The $2 Million Contract That Became $100 Million: How Vendors Exploit the Government
Sam Corcos shares a shocking personal anecdote about a government vendor. After negotiating a $2 million annual contract, the vendor suddenly demanded $100 million a year during renegotiation, claiming the initial price was 'pilot pricing.' He explains that this aggressive tactic is possible because the government is historically seen as a 'soft touch' where 'nobody in my seat says no,' and officials simply approve contracts if they're within budget, leading to widespread exploitation and vendor lock-in.
Inside the IRS IT Department: 1 Engineer for Every 10 Non-Engineers
Sam Corcos reveals the alarming state of the IRS's CIO office, which has 8,500 employees but only 'a couple hundred good engineers.' He describes a significant portion of the workforce as failing a basic 'what do you do here test,' unable to answer simple questions about their roles. He contrasts this with typical tech companies' 5:1 or 10:1 engineer-to-non-engineer ratio, revealing the government's inverse: 1:10, filled with layers of non-technical managers managing managers, making it a 'bullshit jobs' environment where poor performers cannot be fired.
The Most Inefficient Payroll System in Government: HHS Exposed
Sam Corcos exposes the shockingly inefficient payroll system at HHS, where 30 full-time staff manually reconcile spreadsheets, send them to an FAA mainframe running Cobalt scripts, then to a DoD computer, and finally manually re-enter data. This bizarre, multi-agency process highlights systemic dysfunction and a lack of upstream thinking in government.
The 'Promote the Poor Performer' Cycle in Government
Sam reveals a widespread government practice: instead of firing underperforming employees, they are often promoted and moved to another team, creating a 'pass the parcel' system of inefficiency due to civil service protections and union pressure.
The Absurdly Complex HHS Payroll System: A Case Study in Bureaucracy
Sam Corcos exposes the shocking inefficiency of the HHS payroll system, where 30 full-time people manually reconcile spreadsheets from 40 subcomponents, send them to an FAA mainframe running Cobalt scripts, then to a DoD computer, and finally manually re-enter data. He highlights how this 'technically works' but is a prime example of systemic, unaddressed government inefficiency.
The $80 Billion Small Disadvantaged Business Program Scam
Expose the 'huge scam' of the 8A program for small disadvantaged businesses, which allows contracts up to $25 million to bypass competitive bidding. The speaker reveals how contractors exploit this loophole, taking 10-50% off the top for doing 'almost never' any work, leading to an estimated $30-80 billion in annual graft.
Fired 50 IRS IT Leaders: Unprecedented Government Action for Technical Competence
Sam Corcos recounts a shocking decision made early in his tenure: recommending that the entire leadership team of IRS IT, about 50 people, be placed on administrative leave. He explains that this radical step was necessary due to their lack of technical understanding, which led to multi-billion dollar technology decisions being made by unqualified individuals. This unprecedented move aimed to replace them with technical experts to fix the agency's IT problems.
The "Spoils System" to "Pass the Parcel": The Flaws of Civil Service Protections
Sam Corcos delves into the historical origins of civil service protections, explaining how they emerged from the 'spoils system' era (Andrew Jackson) to ensure continuity and prevent political appointees from firing entire governments. While acknowledging their initial purpose, he argues that the system is now 'overindexed,' making it incredibly difficult to remove underperforming employees. He exposes how unions and arduous review processes lead to inflated performance reviews, and the common practice of 'passing the parcel' by promoting poor performers to other teams.
Cybersecurity Bloat: $30 Million Paid for Unused Government Contracts
Sam Corcos reframes the question of trust, emphasizing the need for leaders with 'substantial relevant industry experience' to make good decisions, especially in technology. He illustrates the consequences of lacking such leadership with the 'contractor bloat' in IRS cybersecurity. After replacing non-technical leaders, a review revealed that the government was paying vendors tens of millions annually for services that hadn't been used in years. He explains the core issue: 'when it's not your money,' there's no incentive to cancel wasteful contracts, making the IRS operate like a private company that would have gone bankrupt long ago.
The IRS Still Uses Faxes: 60 Million Per Year & No One Knows How to Stop It
Sam Corcos shares a deeply frustrating example of government inertia: the IRS's reliance on fax machines for taxpayer documents. Despite receiving 60 million faxes annually and maintaining 50,000 active fax lines, and the common taxpayer struggle to send faxes, he details how a misguided belief in faxing's security (outdated by 25 years) persists. His attempts to identify the policy owner and implement change have been met with an endless bureaucratic runaround, highlighting the immense inertia within the system.