Corruption and Government ContractsCorruption, what is it and why does it seem to thrive in business... particularly in government contracts? The Marriam-Webster dictionary defines “corruption” as “impairment of integrity, virtue, or moral principles” (vulnerability to corruption); “improper and illicit conduct intended to secure an advantage for oneself or others” (“corruption”, 2010). Around the world there are stories of corruption resulting from money laundering, unfair government contract awards and bribery. Government acquisitions have become increasingly susceptible to corruption, which inevitably affects the effectiveness of fiscal policy. Contracting is the term used by the government to carry out government acquisitions; this is the primary way the government's tax revenue is spent. Although corruption can occur at any stage of the contracting process, it appears to be most prevalent during the initial evaluation and selection phase. Other areas of concern include acquisition planning: When decisions are made about how to solicit a contract, some acquisitions are set aside as sole source (a specific contractor). Furthermore, abuse can occur even after the solicitation process is finished and the contractor is selected. This form of abuse includes underperformance, contract renegotiation, overbilling, and noncompliance, to name a few. To better understand the current portrayal of corruption in public procurement, it would be helpful to take a look at several areas that have had or continue to have a direct impact on public procurement. These areas include the history of public contracts and why they were implemented, the contracting process, specific corruption… middle of the paper… diligence to ensure they are experienced and ready for all aspects of the contract. government bargaining process. Money will continue to be a driving force in government contract fraud. This was the case in the much publicized Cunningham scandal, in which bribery and payments were initiated and foolishly accepted in an attempt to secure government contracts. Cunningham endured several years of investigation, highlighted by the deceptive and unscrupulous behavior of contractors and government officials. Cunningham was one of the biggest scandals in the contracting industry, but he is by no means the only one. This is why acts such as the Protected Disclosure Act (whistle-blower) and the MACC were adopted. These measures provide some hope in what can be a tumultuous environment as contractors are vying for the same thing, often willing to go to great lengths to win a contract.
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