Labels and Tags

Accountability (71) Adequate documentation (7) ADR in procurement (4) Allocation of risks (6) Best interest of government (11) Best practices (19) Best value (15) Bidder prejudice (11) Blanket purchase agreement (1) Bridge contract (2) Bundling (6) Cancellation and rejection (2) Centralized procurement structure (12) Changes during bid process (14) Clarifications vs Discussions (1) Competence (9) Competition vs Efficiency (29) Competitive position (3) Compliance (35) Conflict of interest (32) Contract administration (26) Contract disputes (4) Contract extension or modification (9) Contract formation (1) Contract interpretation (1) Contract terms (3) Contract types (6) Contract vs solicitation dispute (2) Contractor responsibility (20) Conviction (4) Cooperative purchasing (3) Corrective action (1) Cost and pricing (13) Debarment (4) Determinations (8) Determining responsibility (37) Disclosure requirements (7) Discussions during solicitation (10) Disposal of surplus property (3) Effective enforcement requirement (35) Effective procurement management (5) Effective specifications (36) Emergency procurement (14) eProcurement (5) Equitable tolling (2) Evaluation of submissions (22) Fair and equitable treatment (14) Fair and reasonable value (23) Fiscal effect of procurement (14) Frivolous protest (1) Good governance (12) Governmental functions (27) Guam (14) Guam procurement law (12) Improper influence (11) Incumbency (13) Integrity of system (31) Interested party (7) Jurisdiction (1) Justification (1) Life-cycle cost (1) Limits of government contracting (5) Lore vs Law (4) market research (7) Materiality (3) Methods of source selection (33) Mistakes (4) Models of Procurement (1) Needs assessment (11) No harm no foul? (8) Offer & acceptance (1) Other procurement links (14) Outsourcing (34) Past performance (12) Planning policy (34) Politics of procurement (52) PPPs (6) Prequalification (1) Principle of competition (95) Principles of procurement (25) Private vs public contract (17) Procurement authority (5) Procurement controversies series (79) Procurement ethics (19) Procurement fraud (31) Procurement lifecycle (9) Procurement philosophy (17) Procurement procedures (30) Procurement reform (63) Procurement theory (11) Procurement workforce (2) Procurment philosophy (6) Professionalism (17) Protest - formality (2) Protest - timing (12) Protests - general (37) Purposes and policies of procurement (11) Recusal (1) Remedies (17) Requirement for new procurement (4) Resolution of protests (4) Responsiveness (14) Restrictive specifications (5) Review procedures (13) RFQ vs RFP (1) Scope of contract (16) Settlement (2) Social preference provisions (60) Sole source (48) Sovereign immunity (3) Staffing (8) Standard commercial products (3) Standards of review (2) Standing (6) Stays and injunctions (6) Structure of procurement (1) Substantiation (9) Surety (1) Suspension (6) The procurement record (1) The role of price (10) The subject matter of procurement (23) Trade agreements vs procurement (1) Training (33) Transparency (63) Uniformity (6) Unsolicited proposals (3)

Monday, June 28, 2010

Effective procurement requires effective staffing

USAF Helps The Army Hit The Target
By the end of 2003, it was clear that bribery, and corruption in general, were going to be the biggest threat to stability and the introduction of democracy in Iraq. Massive dishonesty is a problem throughout the region

For example, captured Iraqi oil ministry documents revealed a pattern of international bribery, from the 1991 Gulf War until the 2003 invasion, involving millions of barrels of Iraqi oil (worth over $100 million). This was paid, in return for support for Saddam Hussein, to 46 organizations and individuals.

The recipients included prominent Arab families, religious organizations, politicians and political parties in Egypt, Jordan, Syria, the United Arab Emirates, Turkey, Sudan, China, Austria, France and several other countries.

Some of the organizations named, included the Russian Orthodox Church, the Russian Communist Party, India's Congress Party and the Palestinian Liberation Organization.

Buying kind words is nothing new, but in a democracy, you're expected to be open about it. In the United States, lobbyists have to register with the government, and payments from foreign governments reported. In the Middle East, you give, or take, the money, do the job, and keep quiet about it. This was not unique to Iraq, after U.S. forces got into Afghanistan in late 2001, they captured Taliban records revealing that even these Holy Warriors had big problems with corruption.

Within Iraq, American civil affairs troops, and soldiers in general, constantly come up against Iraqis who offered to bribe them for special treatment. It's unnerving for Americans to encounter such a pervasively corrupt atmosphere. The Iraqis take it for granted that the rules are for fools and that you buy your way to success, and screw those who can't.

There were also problems with corruption among Kuwaiti government officials, who apparently demanded, and got, kickbacks from the American firms doing reconstruction work in Iraq. The corruption was not only pervasive, but often a major obstruction to getting anything done.

This was especially true in Kuwait, which was a U.S. ally, and not under the control of the American military, as was the case in Iraq. Thus Kuwaiti suppliers could sometimes threaten to hold up vital military operations unless a bribe was paid, The only choice was to pay, or delay (and have the State Department or senior U.S. military officials go through the Kuwaiti government to apply pressure to the obstructive supplier.)

There was a body of knowledge in the American military contracting community that U.S. Army officials could use to get around a lot of these problems. But the army didn't have it

So, following the example of the U.S. Air Force, the U.S. Army established a "Contracting Command" and staffed it with contracting professionals, to handle the larger volumes of contract personnel and organizations hired for the war on terror. Iraq, in particular, was a struggle. There were nearly 200,000 contractor personnel in Iraq (including Kuwait) and Afghanistan, during peak operations. This was an unprecedented contracting situation for the American military.

Iraq was what broke the army's existing contracting capability. Before the 2003 invasion of Iraq, the army had one base in Kuwait (through which most army troops pass, on their way to Iraq), and contracting officers there handled $150 million worth of business a year. By 2007, there were eight bases in Kuwait, and a billion dollars a year in contracts to deal with. Since 2003, over 800,000 U.S. Army troops have passed through Kuwait, on their way to Iraq, where tens of billions in contracts have been issued, and often not administered well.

The army got lots of help from the air force, which sent many of its contracting officers to help out.
In the air force, contracting is a career path, and the air force people really knew their stuff. The army could see that after a few years, when they measured rate of contracts with problems, and found it was much lower for air force personnel than for army contracting officers.
It was only two years ago that the Army Contracting Command was established, with a strength of over 4,000 personnel, including 400 military and 1,100 civilian personnel specializing in contracting. The rest were existing acquisition people, who will benefit from having their own command and career path. The command is led by a Major (two star) General, and will take at least five years to come near the level of effectiveness the air force already enjoys in this area.

No comments: