The Next Government

Management Idea: Requiring Competitive Bidding

Candidate: Barack Obama

Management Area: Fiscal Strategy

Description: All government contracts worth more than $25,000 will be subject to competitive bidding, except those deemed to be emergencies (and thus eligible for a sole source award).

From Obama's Taking Our Government Back: “The current Administration has abused its power by handing out contracts without competition to its politically connected friends and supporters. These abuses cost taxpayers billions of dollars each year. According to a 2006 study by the House Government Reform Committee, federal contracting mushroomed from $203 billion in FY 2000 to $377 billion by FY 2005—an increase of 86 percent.”

Related Ideas: The Edwards plan calls for universal, non-emergency bidding, but does not specify a floor on contract value.

Fels Institute of Government
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