Rewriting Social Security will be a train wreck

opinion
Apr 2, 20254 mins

The software industry has known for decades that rewriting a system from scratch is never the right solution. The bigger the system, the worse the mistake.

old train coming down the tracks on a dark night
Credit: Tongsai / Shutterstock

Government software development is a curious business.

When I was a student at the Naval Postgraduate School, I wrote a paper called โ€œThere is a Lot of Money to be Made Writing Bad Software for the Federal Government.โ€ย 

The general idea is that the incentives to write good software arenโ€™t nearly as strong as those nudging you to write it poorly.ย First, the projects are usually huge and done on a โ€œcost plusโ€ basis.ย That is, a company estimates how much the project will cost, and submits a bid based on that cost plus a profit margin.ย The idea is that competing companies will work to get their development costs down and minimize their profits to become the lowest bidder.ย 

Now, the lowest bid doesnโ€™t always win, but generally it does.ย So the incentive is strong to bid as low as one can dare.ย 

Typically, then, the winning bidder gets to work, and they soon realize that they wonโ€™t possibly be profitable in the endeavor unless they build quickly, cut corners, and generally do the minimum work required to meet the specification, often with sub-sub-optimal results.

Ineptness rewarded

Guess what happens next? When the delivery day arrives, everyone is shocked when the project isnโ€™t finished and what is done isnโ€™t very good. So the government sighs to itself and puts out another bid to get everything working.ย 

Well, who is best suited to โ€œfixโ€ the project? Naturally, the company that built it!ย So they are very often awarded an additional contract to โ€œcorrectโ€ the problems of the first effort, and so it goes.

Thus, software development organizations can win millions of dollars in government contracts for writing bad software and never delivering good, working code.ย 

It is way more complex than that, and the government does get systems working. But the underlying incentives are not designed to produce efficient and effective outcomes.ย The profit motive drives bad work, not excellent work.ย 

In the defense of these contractors, government systems are often huge and complex and have requirements documents thousands of pages long.ย 

So when I heard that Elon Musk and his DOGE team are going to rewrite the COBOL-based system that runs Social Security in a few months, I just shook my head and gave a wry chuckle. Sure they are.ย 

The biggest pile

Letโ€™s start with the notion of rewriting a working system.ย Sure, itโ€™s probably a huge pile of mud, among the hugest of piles of mud. But it is, more or less, working.ย And the wisdom of taking a working system, which has embedded within it all of the knowledge of decades of development and requirements of the system, and rewriting it to contain all of that inscrutable, unknowable corporate knowledge is, to put it delicatelyโ€”quite insane.

I wonโ€™t touch the political side of this whole thing (not with a 15-foot pole) but I will fearlessly assert this:ย The DOGE team members donโ€™t have even the slightest idea what the requirements are for the US Social Security software system. They donโ€™t have the slightest idea what they donโ€™t know.ย Much of that knowledge is embedded in the code and just runsโ€”sending out checks, processing applications, and generally keeping things running.ย How anyone is going to read all of that COBOL code, understand it, and translate it into a Python application (or whatever) is beyond me.ย 

Look, I get it.ย Iโ€™ve never met a software developer who didnโ€™t think they could take an existing working system that looks like a 200-car train wreck full of kitchen appliances and turn it into a Japanese bullet train.ย But the industry has known for decades that rewriting a system from scratch is never the right solution. Asking a team to rewrite what might be the single most complex and important system in the entire country seems the very definition of fraught with peril.

So no, they wonโ€™t rewrite Social Security in a few months. Theyโ€™ll spend a few months learning why the last 40 years happened the way they didโ€”if theyโ€™re lucky. And if this train does start rollingโ€”and let me say very clearly that it should unquestionably remain in the stationโ€”weโ€™re all going to find out what happens when you run a 200-car train full of kitchen appliances off the rails.

Nick Hodges

Nick has a BA in classical languages from Carleton College and an MS in information technology management from the Naval Postgraduate School. In his career, he has been a busboy, a cook, a caddie, a telemarketer (for which he apologizes), an office manager, a high school teacher, a naval intelligence officer, a software developer, a product manager, and a software development manager. In addition, he is a former Delphi Product Manager and Delphi R&D Team Manager and the author of Coding in Delphi. He is a passionate Minnesota sports fanโ€”especially the Timberwolvesโ€”as he grew up and went to college in the Land of 10,000 Lakes. He currently lives in West Chester, PA.

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