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by ProblemFactory
1183 days ago
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> For example, Aldi can just decide to hire a contractor that they know does good work at a reasonable price. In contrast, the govt has to use a lengthy fair and open bid process and if they want to select a bid that isn't the lowest, it's a painstaking process to justify that selection. It's unfortunate, but probably better than the corruption that anything else will enable in the long run. Churchill said that democracy is the worst form of government, except for all the others. For government spending, lowest bidder is the worst form of contracts, except for all the others. |
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FWIW, the govt can do "best value" contracts instead of lowest bid. But there is an asymmetry in risk to those making the selection. If something goes wrong in the design/construction, or if corruption is found, there's a lot more explaining to do. Like the old quote, "Nobody got fired for hiring IBM," except in this case "Nobody got fired for selecting the lowest bid."