Hold people accountable for their actions. Why is it so hard to fire someone from the federal government? People always say "Once you're in, your in, you'll never get fired." There shouldn't be any truth to that, and yet there is. Get rid of the dead weight and spark a fire in workers to work hard for the money! Federal jobs shouldn't be cushy jobs, they should jobs where people want to work hard and implement change, not sit back and skirt the system.
Not only will this save money, the government will be boatloads more productive than it is today.