First Contracts Let With Stimulus Funds -- Some Problems Arise

(MoneyWatch)  Govexec.com writes that a review of the first contracts awarded using the "Stimulus" or "Recovery" funds find the majority have issues as to how they were awarded. Some of them did not have the necessary paperwork done and the rest were sole source awards. These kind of problems had been predicted when the bill was passed as the Federal government's rules on competition and selection are fairly complicated. Another situation that has arisen is that agencies were encouraged to use existing contract vehicles for these contracts. This means that some of them were given to companies that had originally won a sole source contract. The existing contracts might also be cost plus vehicles. One of the goals of the bill was to maximize the use of fixed price contracts and competition. If an agency is rapidly trying to find work that it can do with the stimulus funds further complications like these may arise. Unfortunately for the government there will be a high level of review and auditing for these contracts and negatively publicity will hurt the use of the funds in the future.