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PUBLIC PROCUREMENT POLICY: IMPLICATIONS FOR THEORY AND PRACTICE 323procurements’ requirements. Thus, while the desired outcome oftimeliness was achieved, other outcomes were not.Iraq ReconstructionThe contracts awarded for reconstruction and military operationssupport in Iraq have also come under scrutiny. The criticisms ofthese contracts focus more on the procurement methods used toacquire these urgent supplies and services, specifically addressingthe issue of competitive or non-competitive contract awards. Avariety of structural policies, including the Federal AcquisitionRegulation (FAR) and applicable statutes, requires the use of full andopen competition in awarding contracts, or proper justification andauthority for using other than full and open competition procedures.In addition, policies require that, when issuing task orders underexisting contracts, these task orders must be within the generalscope of the basic contracts. Recent analysis of Iraq reconstructioncontracts determined that agencies generally complied withapplicable laws and regulations in awarding contracts using otherthan full and open competition procedures. For example, the ArmyCorps of Engineers appropriately awarded a sole source contract forIraq oil infrastructure reconstruction to one contractor who wasdetermined by the agency to be the only contractor that could meetthe requirement (Government Accountability Office, 2004). Althoughthis sole source contract was awarded in accordance with statutoryand regulatory requirements, there still exists a perception of“cronyism and a lack of transparency” in the procurement processdue to close ties between senior government officials and thecontractor (“The Triumph of Cronyism,” 2008).The contract awarded by the U.S. Agency for InternationalDevelopment (USAID) for major infrastructure reconstruction work inIraq is another example of such controversy. Due to its large contractvalue and use of less than full and open competition, the contractaward to Bechtel resulted in a high level of controversy. USAIDinitially had sent the Request for Proposal (RFP) to seven potentialcontractors, with a two-week response time. Three declined tosubmit, and only two of the remaining four submitted competitivebids. The contract award was made to Bechtel using a costplus/fixed-fee“letter contract” (Department of Defense SpecialInspector General, 2006). Although the USAID Inspector General’sreview of the Bechtel contract award concluded that the agency had
324 SNIDER & RENDONcomplied with all applicable federal regulations, except for the rulerequiring notification and timely debriefings to unsuccessful offerors,perceptions of cronyism and favoritism in the procurement processremained (“The Triumph of Cronyism,” 2008).In these cases, demands from the environment were apparentlyso stringent that competition was minimal. Even though structuralpolicies were followed, many perceived the procurements to bebiased. In some cases, then, policy-makers may simply have toaccept that their decisions will be unpopular and subject to criticism.Mine-Resistant Ambush-Protected (MRAP) VehicleIn response to the increasing number of coalition casualties fromImprovised Explosive Devices (IED) attacks, the Department ofDefense (DOD) initiated the acquisition of Mine-Resistant Ambush-Protected (MRAP) vehicles in 2007. The Secretary of Defense madeMRAP the DoD’s top priority acquisition program, which led to anaggressive acquisition approach, including compressed contractingprocesses, a 24/7 testing schedule, and multiple contract awards inorder to ramp up production activity. However, the DoD acknowledgesthat it may “encounter manufacturing, spare parts, and maintenanceissues….[and] is accepting these risks in order to provide morecapable vehicles to our troops as absolutely fast as possible…”(“Herculean Work”, 2007). Of course, a major consequence of thishighly accelerated acquisition approach will be the lack of adeveloped infrastructure for logistical and sustainment support ofthese vehicles. With multiple contractors manufacturing uniquelydesignedvehicles, the logistical footprint for providing training,maintenance, and spare parts may prove to be costly in the long run.Here, the urgent demands of the environment for immediatefielding of enhanced troop protection have led to the setting aside ofmany structural policies. From the perspective of policy-makers, costfactors in this case simply do not enter into consideration.Relationships between Allocative and Structural PoliciesRecall Lowi’s (1964) hypothesis that technologically advancedsocieties reflect increased reliance on structural rather thanallocative policies. With respect to public procurement, maturesocieties wish to promote principles such as transparency and
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