Contracts

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Government contracts are (or should be) based on the same principles as commercial contracting. A contract between a vendor or supplier and a unit of government must comply with the laws and regulations that permit it, and be made by a contracting officer with actual authority to make the contract.

In particular, it is important to avoid insider-dealing when a government is entering into contracts. Even at the local level, contracts can be for amounts in the tens of millions of dollars.

Contracts should be awarded to whichever corporation or individual can provide the highest quality work in the most cost-effective way. It's important to avoid granting contracts based on:

  • Patronage
  • Campaign contributions.
  • To friends and relatives of members of the governing commission that ultimately approves all contracts.

Evaluating government websites

Government websites should inform residents about:

  • Rules governing contracts.
  • Bids and contracts for purchases over $10,000.
  • Information about vendor campaign contributions should posted with contract information.

See also