[cturner]

Idea for a bidding model: Bidders for government contracts would need to put a large amount of money in trust. The government pays them interest on this, plus alpha. If they weren't meeting targets, then the government could just eat into the trust money.

Now the risk management is no longer being done by government, but by the banks who lend you the money. They specialise in such work. This a similar dynamic to film financing.

Imagine the secondary market that would pop up for the risk underlying such projects.