Stimulus contracts favor big, politically connected players
| June 08, 2009 |
According the Montana’s Missoulian newspaper, local firms and small contractors are losing out on millions of stimulus dollars because a controversial type of contract being used by the federal government favors the big, multi-national corporations. Key quote:
“That’s because the government is using a controversial contracting method that speeds bidding, but also tilts the playing field in favor of mega-companies. It’s called IDIQ contracting, which is shorthand for “indefinite delivery/indefinite quantity,” and it’s essentially an all-you-can-eat money buffet for big corporations.
An IDIQ is a broad and open-ended agreement, in which the government essentially creates a sort of long-term, all-purpose contract under which specific tasks can later be defined. The scheme moves projects quickly – which is a priority for economic stimulus jobs – but critics argue it’s anti-competitive, because only a handful of large firms can afford to engage on such undefined and unrestricted terms.”
What really rips the Montana contracting community is that a capable state firm was passed over for a $78 million border station job that went instead to California-based Parsons Corporation despite the fact that Parsons had been repeatedly cited for shoddy work and cost overruns in its IDIQ contracts in Iraq.
From our partners
JLG announced that it was selected by United Rentals as “Strategic Supplier…
More From: Construction News
Do you want some tips to stay safe on the job site?
Equipment World has created an entire section devoted to safety.
Here are the most recent tips we've posted: