2 ms·
I don't think it is possible to discourage federal contracts being awarded to the benefit of a particular state. If a state is home to a company with the exper
by tastyfreeze 6y ago
I don't think it is possible to discourage federal contracts being awarded to the benefit of a particular state. If a state is home to a company with the expertise to complete a project the contract can't just be awarded to a another state that doesn't.
The best we could do is change the way contract funding is performed. Cost-plus pricing without an upper bound is a huge issue. This type of contract encourages bidders to bid low on cost and make up for it with project extensions.
Of course cost-plus is preferred by bidders as they can guarantee a minimum of profit since cost is already covered. However, fixed price contracts are better from the perspective of the government spending. The spend is known up front. It is up to the bidders to determine if they can make a profit or not.
Ideally the government shouldn't care if the bidder is making a profit. It is their duty to spend public funds frugally. Cost-plus makes it impossible to reign in contract spending without terminating the contract.