From Defense Tech.
Story:
"Companies found to be crooked one day are given giant contracts the next. Sometimes this is unavoidable -- like when there's only one firm with has the expertise to tackle a particular task. But more often, it seems, the Pentagon goes out of its way to reward business that screw them over.
Take this story from Defense Industry Daily, for example:
In April 2005, L-3 Communications subsidiary Interstate Electronics Corp. in Anaheim, CA was placed under criminal investigation for providing faulty parts to the CSEL [Combat Survivor/Evader Locator] search and rescue GPS/ beacon/ communicators used by US aviators, special forces teams, et. al. - and concealing test failures. So, naturally, they've just been awarded a contract to support the test; instrumentation hardware for most of America's nuclear missile fleet; and all of Britain's."
Now why is the procurement system not broken? There is no real concept of a reputation system (and no impact or effect if you screw somethign up) mainly a fine and 'time-out'. Transparency doesn't exist. What is needed is a rated reputation system that impacts a company if they do wrong otherwise it's just business as usual and the soldier (and taxpayer) gets the short end.
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Del.icio.us Tags: military, reputation, procurement
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