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An Introduction to U.S. Procurement Part I

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1 An Introduction to U.S. Procurement Part I
KCL Diploma Program: Public Procurement Regulation in the EU and in its Global Context Professor Christopher Yukins George Washington University Law School Washington DC March 5, 2019

2 Readings Steven L. Schooner, Desiderata: Objectives for a System of Government Contract Law (PPLR 2002), Christopher R. Yukins, A Versatile Prism: Assessing Procurement Law Through the Principal-Agent Model (PCLJ 2010), Christopher R. Yukins, The U.S. Federal Procurement System: An Introduction (UrT 2017), Johannes Schnitzer & Christopher Yukins, Combatting Corruption in Procurement, in UNOPS: Future-Proofing Procurement (2015), Christopher R. Yukins, European Commission Proposes Expanding the European Defence Fund— A Major Potential Barrier to Transatlantic Defense Procurement, 60 Gov. Contr. ¶ 196 (June 27, 2018), available at

3 George Washington University Law School
Classroom and distance learning in public procurement law and policy, for students in law and business Government Procurement Law Program Established 1960

4 King’s College London – GWU Law Annual Symposium: March 18, 2019
On Debarment Photo credit: Ian Lee/Flickr

5 Introduction to George Washington University Law School –
Public Procurement Law Program (JD, LLM and MS/Government Contracts) Steven Schooner Joshua Schwartz Jessica Tillipman Karen Thornton

6 Procurement Law Centers: 2000
Nottingham. Washington, D.C.

7 Procurement Law Centers Today
Stockholm Vilnius Nottingham. Copenhagen KCL Moscow Northern China Bangor Munich Paris Poland Beijing Washington, D.C. Aix-en-Provence Galicia Turin Rome Stellenbosch

8 Principles: The Desiderata (Steven Schooner, 2002)
Transparency Integrity Competition Uniformity Risk Avoidance Wealth Distribution -- Socioeconomic Best value Efficiency (administrative) Customer Satisfaction

9 Principal-Agent Model
MONITORING Agent 2 Contractor Agent 1 CO Purchase Principal Bribery? Gratuity? Personal conflict of interest? Organizational conflict of interest? “Kickback” to vendor? Fraud? Collusion? Other forms of market barriers? BONDING (PUNISHING)

10 Processes Rules Qualification Responsiveness Planning
Competition - Methods Cost Reimb. Contract Provisions

11 The United States . . .

12 . . . Has Separate Procurement Systems
Federal Procurement State Local

13 .. . . Has about $500 billion in annual federal procurement

14 . . . Procurement Remains Political
Question: If President Trump did interfere with this procurement for his personal benefit, would this be: Petty corruption Grand corruption State capture?

15 . . . But Not Driven by Individual Politicians
Virginia 8 (James P. Moran) 1 District of Columbia nonvoting (Eleanor Holmes Norton) 2 Texas 12 (Kay Granger) 3 Missouri 1 (William (Bill) Clay / Wm. Lacy Clay) 4 Virginia 10 (Frank R. Wolf) 5 Alabama 5 (Robert E. (Bud) Cramer Jr.) 6 California 37 (Juanita Millender-McDonald) 7 Mississippi 4 (Ronnie Shows / Gene Taylor) 8 Virginia 3 (Robert C. Scott) 9 California 14 (Anna G. Eshoo) 10 Top 10 Congressional Districts for Federal Contracts, FY07

16 . . . Accessible Source: FY07 Contracts - Defense

17 . . . Is Transparent at Opportunity and Award

18 Historical Progression
                                                                   Sealed Bids Negotiated Procurements Frameworks Sole Source                                                                                 

19 Major methods of competition
. . . Familiar Major Methods of Procurement Open Procedure (less than 3%) Restricted Procedure Multilateral Competitive Negotiations (more than 60%) Sole-Source Major methods of competition

20 Umer Chaudhry GWU Law Student

21 . . . Prone to Scandal Darleen Druyun
Previously highest-ranking civilian official in Air Force procurement systems Convicted of improper job negotiations with Boeing during tanker procurement Admitted favoring Boeing in hundreds of millions of dollars in procurement Sentenced to prison $650M Boeing settlement

22 Frameworks Frameworks emerged in the United States and elsewhere along parallel paths Supplier Lists

23 Frameworks: Sample A B C FRAMEWORK AWARD PRICE – PER UNIT US$1000
JANUARY (NASA: 500 UNITS) US$900 APRIL ORDER (ARMY: UNITS ) US$800 US$550 DECEMBER ORDER (NAVY: UNITS)

24 Problems in U.S. Frameworks: 1990s
Reduced Transparency – Reduced Accountability -- Misuse of Frameworks Customer Agencies Centralized Purchasing Agencies Contractors

25 Scandals -- Scandals and reform driven by internal government forces, including Congress, GAO and inspectors general -- Punctuated by Abu Ghraib disaster

26 Do the EU Directives Impose Additional Principles?
Source: Abby Semple, Source: Abby Semple Author: Abby Semple

27 USA Model Law for States
USA - Federal EU World Bank WTO USA Model Law for States Acquisition Planning Publication of Opportunities Electronic Auctions Open Procedure Competitive Dialogue Frameworks Contract Award Notices Bid Challenges Exclusion Contract Administration CONVERGENCE

28 Conclusion Christopher Yukins cyukins@law.gwu.edu
Mobile

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