Government Budgetary Process

During the formulation of huge budget projects, senior government officials participate in the decision making process. In this case, government representatives negotiate with the project contractors before agreeing on a deal. Based on the findings of the spy satellite program, the select committee of the senate and the two contractors who had submitted their bids did stringent negotiations. At the end of the contract, Boeing obtained the contract with the projected financial expenses for the program. Despite the fact that the projected cost by the government was extremely less as compared to expertise evaluations, the project progress unrestricted. This implies that senior leaders within the government can considerably influence budgetary processes. In this regard, they control the amount allocated to projects, are decision makers in contract negotiation and assessors at the course of the project (Stillman, 2010).   

The advancement of the spy satellite program led to high costs that the government had not anticipated. Initially, the government had forecasted that the project would cost up to four billion dollars. However, as the project advanced, additional costs aroused due to the nature of the technology required for its success. In addition, most of the items overlooked at the analysis of the project were considered. As a result, these factors escalated the budget forcing the government to terminate the project.

The death of the spy satellite program depicted the role of politics in the budgetary process. At the time of the project, the republicans were the majority who fought for its implementation. Without a proper analysis of the costs that the government would encounter and the risks involved, the project was set to progress. Additionally, government representatives imposed the project on doubtful contractors with limited budgetary allocation for the project. This implies that politics play a crucial role in determination of the projects that the government will invest.