STIMULUS PROJECTS – POTENTIAL FOR ABUSE AND MISTAKES

By Kent Berk on September 12th, 2009 in BLOG

Federal, state and local governments understandably want to quickly implement stimulus projects to put people back to work, jump start the economy and avoid losing stimulus funding. The amount of money at stake, the cut backs in government office staffing and focus on speed heighten the risks for abuse and mistakes in the government procurement and bid award process. As explained by Massachusetts Attorney General Martha Coakley,

“The potential for mistakes is heightened because of the emphasis on speed. The focus of Congress and state governments is on putting people to work, awarding contracts, and placing shovels in the ground quickly. As we do so, we must take pains to balance speed with care. The public has reason to be wary. A recent wave of stories from various states about apparent corruption, fraud, and “pay to play” abuses in the awarding of government contracts and other benefits have shaken confidence in the ability of government to steward public funds wisely. Add to that the lax oversight and accountability at the root of the current economic crisis and it is perfectly understandable why people are so skeptical.”

Bid protests provide an important “check and balance”, especially now. According to Attorney General Coakley, “Speed must be balanced with critical public bidding protections necessary to ensure that contracts are competitively and impartially awarded based on the value and quality of the goods and services to be provided. The procurement laws that currently govern public projects generally strike the right balance. They ensure that contracts are awarded based on value and merit, not because of friendships, campaign contributions, fraud, or simple sloppiness.”