DOGE has revealed that the excessive purchasing of software licenses is leading to a waste of money

Recently, revelations from the Department of Government Efficiency (DOGE) have brought to light a staggering issue plaguing government agencies: the gross over-purchasing of software licenses. These findings expose a systemic problem where agencies are spending millions of taxpayer dollars on licenses and subscriptions that far exceed their actual needs—many of which remain unused.

This inefficiency not only wastes public funds but also highlights a lack of oversight and coordination in procurement processes. Let’s break it down with a closer look at the General Services Administration (GSA) as a prime example.

The GSA, an agency with approximately 13,000 employees, provides a clear case study of this troubling trend. According to the data:

• 37,000 WinZip licenses: That’s nearly three licenses per employee—an absurd figure when you consider that a single license is typically sufficient for an individual user.
• 19,000 training software subscriptions: Even more baffling, the agency is running multiple parallel training platforms, suggesting redundancy and overlap in functionality.
• 7,500 project management software seats: This is allocated to a division with just 5,500 employees, meaning over 2,000 seats are likely sitting idle.
• Three separate ticketing systems: Rather than consolidating into a single, streamlined solution, the agency is juggling three different systems for what is essentially the same task.

These numbers paint a picture of excess that defies logic. For an agency with a workforce of 13,000, the procurement of 37,000 WinZip licenses translates to an average of 2.8 licenses per employee.

In what scenario does a single worker need nearly three copies of the same software? Similarly, the surplus of project management seats and the use of multiple ticketing systems point to a lack of strategic planning and resource allocation.

The Cost of Waste

The financial implications of this over-purchasing are staggering. Software licenses, especially for enterprise-grade tools like WinZip, project management platforms, or ticketing systems, often come with hefty annual fees. When thousands of these licenses go unused—or “idle,” as the audit describes them—the agency is essentially throwing money away. This isn’t just a matter of poor bookkeeping; it’s a systemic failure to align spending with operational needs.

Take the GSA’s 19,000 training software subscriptions as an example. If each subscription costs even a modest $100 per year (a conservative estimate for enterprise software), that’s $1.9 million annually—much of it potentially wasted on unused access or redundant platforms. Multiply this across the dozens of government agencies with similar practices, and the total cost to taxpayers could easily reach tens or hundreds of millions of dollars.

Why Does This Happen?

Several factors likely contribute to this inefficiency:

1. Lack of Oversight: Procurement decisions may be made without a clear understanding of existing resources or actual employee needs.
2. Vendor Lock-In: Agencies might feel pressured to renew bloated contracts with software vendors, even when usage data doesn’t justify the expense.
3. Decentralized Systems: The presence of three ticketing systems suggests a fragmented approach to IT management, where different departments operate in silos rather than adopting agency-wide solutions.
4. Overestimation: There’s a tendency to “play it safe” by purchasing more licenses than necessary, perhaps to avoid shortages—yet this caution comes at a steep cost.

Ripple Effect

Beyond the financial waste, this overabundance of software creates operational inefficiencies. Multiple ticketing systems, for instance, mean employees must navigate different platforms for the same purpose, slowing down workflows and increasing the likelihood of errors.

Redundant training software platforms confuse staff and dilute the effectiveness of professional development programs. In short, the excess doesn’t just hurt the budget—it hampers productivity.

Fixes Are Underway?

The good news is that agencies like the GSA are actively working to address these issues. Corrective measures likely include auditing current usage, renegotiating vendor contracts, and consolidating overlapping systems. However, the scale of the problem suggests that quick fixes alone won’t suffice. A cultural shift is needed—one that prioritizes accountability, data-driven decision-making, and lean resource management.

Reform

The DOGE’s revelations are a wake-up call for government agencies and taxpayers alike. The data from GSA—and similar findings from HUD, which reported 35,855 ServiceNow licenses with only 84 in use—underscore the urgent need for reform. Taxpayer dollars should fund services that benefit the public, not pad the pockets of software companies through idle licenses.

Moving forward, agencies must adopt rigorous procurement standards: assess actual usage before renewals, centralize software systems where possible, and hold managers accountable for wasteful spending. Only then can the government eliminate this egregious misuse of resources and redirect funds to where they’re truly needed.

In a time when efficiency and fiscal responsibility are more critical than ever, these findings serve as both a warning and an opportunity. The question now is whether the fixes in progress will go far enough to prevent this waste from becoming a permanent fixture of government spending.