When isn’t the bidding process for anything in government skewed? My assumption always is that someone’s got the inside track for any government (taxpayer) funded project. But the Obama administration in this instance didn’t even want to bother with the bidding process. It just wanted to directly hand out contracts (favors).
(From The Washington Free Beacon)
A contractor that managed a sizable portion of Housing and Urban Development’s Section 8 program claims that numerous HUD officials illegally threw away a competitive bidding process for contracting that work, claiming internal emails show repeated instances of high-ranking HUD officials skirting court rulings while operating with a bias against their company and others like them in the years that followed…
…HUD relied on a competitive bid process for the contracting and by most standards, the efforts led to success: Better administration of the program for fewer dollars.
Navigate and its colleagues point to a report by the HUD inspector general that noted HUD, “has made substantial progress in reducing erroneous payments, from and estimated $3.2 billion in fiscal year 2000 to $1.32 billion in fiscal year 2011.” That study was agency-wide, meaning those totals include the Section 8 program as well as others.
However, the Obama administration altered the process in 2012, relabeling the contracts as “cooperative agreements” so the funds could be distributed in a system that resembeld a state-based grant structure rather than a competitive bidding process.
The GAO ruled the move was improper in August of that year. However, when HUD showed it had no intention of adhering to the GAO’s guidance, Navigate and other contractors sued.