Monday, March 9, 2009

competition for government contracts

Competition for services is different that competition for goods
After hearing about that no government contract should be awarded sole source and that no contract should be cost-plus I have been thinking about what that might look like. The problem is competition for government contracts is not like competition in a normal marketplace. Most contracts aren't for widgets that are being built and the government is trying to buy a few--it is for a service. So it should be thought of more like hiring a home contractor or a doctor. Have you ever tried to get a fixed price contract with your doctor? Do you shop for a different doctor every time you feel sick?

I am not saying that all contracts should be sole source or that fixed price contracts are bad. I do find the lack of depth in the public conversation to be frustrating.

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