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This is the most obvious reason for why government procurement and contracting costs are so high. US/Canada governments have simply dissolved all in house expe
by asdajksah2123 4y ago
This is the most obvious reason for why government procurement and contracting costs are so high.
US/Canada governments have simply dissolved all in house experience. Which means they have no competent and experienced people who can actually evaluate contract bids. But further, they don't have people in-house with either the experience, competence, or power to make agreed upon changes to contracts on the fly.
And because the contracts are so set in stone, that means even if all the bidders are operating completely ethically, they need to pad their margins significantly to account for anything unexpected. But in reality many bidders are not operating ethically and are able to use a lot of the necessary features of a government bidding process (clearly outlined and transparent contracts with very little subjective input) to maximize their revenue and minimize their output.