Accounting for how the government spends money is actually a very difficult problem, but 18F is also working on that. We're helping the Treasury Department implement the DATA Act, which will give the public and government a much better way to track how federal money is spent. https://18f.gsa.gov/2015/06/09/data-act-data-act-explainer/
But yes, agencies have some discretion in how they spend their budgets. Agencies are often mandated to operate a service, but are able to spend money by hiring 18F or private vendors to improve how they deliver that service.
But yes, agencies have some discretion in how they spend their budgets. Agencies are often mandated to operate a service, but are able to spend money by hiring 18F or private vendors to improve how they deliver that service.