Statewide Examples of DOGE-Like Government Efficiency Initiatives

Below are some examples of what we’re seeing at the state, local and education (SLED) levels of government with similar initiatives:

• Florida: Governor Ron DeSantis launched a DOGE task force to audit spending, cut bureaucracy, and eliminate DEI programs. The task force uses AI to identify potential budget cuts across state agencies, universities, and local governments.
• Oklahoma: Governor Kevin Stitt established DOGE-OK within the Office of Management and Enterprise Services to eliminate wasteful spending and recommend operational improvements.
• New Hampshire: Governor Kelly Ayotte created the Commission on Government Efficiency to streamline state operations and eliminate inefficiencies.
• Texas: The state House announced plans to establish a Delivery of Government Efficiency Program to weed out inefficiencies in state agencies.

More states are exploring similar DOGE-style initiatives, though they may not be as far along as the examples above. While some states had implemented cost-cutting and efficiency measures before the federal DOGE was established, there is a blueprint now for new states to follow or a chance for states with existing measures to rebrand them as DOGE-style initiatives.

DOGE Impact on State and Local Spending and Contracting

These DOGE-style initiatives will likely lead to changes in state and local government spending and contracts. By identifying and eliminating inefficiencies, states can potentially reduce their overall expenditures. However, this could also mean reduced funding for certain programs and services, which might impact their quality and availability. Consequently, we may see contracts cut, not renewed, or reduced in scope and funding.

Federal Funding Cuts May Lead to New State-level Responsibilities

While DOGE-style initiatives may end up reducing SLED spending, there are still opportunities for growth in other areas. The federal government has announced various funding freezes and cuts to state funding, some confirmed through executive orders and others suggested by statements from top officials. This reduction in federal funding, along with its unpredictability, presents a unique opportunity for state governments to take on new responsibilities, such as disaster response services typically managed by FEMA. This shift allows states to "write their own story" by customizing and tailoring services previously provided by federal assistance, potentially better meeting the needs of their residents. However, it also places a significant burden on state resources and requires efficient management to avoid service disruptions. Careful budget balancing and reallocation will be necessary to ensure funds are available for high-priority areas that may lose federal support.

Potential Impacts on the Procurement Market

For vendors looking to sell to state and local governments, these changes present both challenges and opportunities. The focus on efficiency and cost-cutting may lead to more competitive procurement processes that can emphasize greater value, quality and/or more innovative solutions. Vendors may need to adapt to new procurement practices, such as streamlined and modern e-procurement platforms, more use of volume discount pricing or greater use of pre-existing, proven, convenient and cost-effective cooperative contracts, etc. If services once provided or backed by the federal government are increasingly needing to be managed by SLED entities it could potentially open new market segments and increase opportunities in the large and competitive SLED market.

Overall, while these initiatives aim to improve efficiency and reduce costs, they also require careful implementation to ensure that essential services are maintained and the procurement market remains accessible and competitive for vendors. SLED officials and purchasing staff can learn from the federal government's rollout and implementation of DOGE, taking note of any mistakes and missteps. The federal DOGE has faced criticism relating to disruptions to the government's ability to function normally and confusion about the details, direction and expectations. By learning from this process, SLED can help ensure a smoother implementation of similar initiatives.