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Latest newsNews searchHealthFinanceFoodCareer newsContent seriesTry Devex Pro
    • News
    • News analysis: Procurement reform

    Does US aid have a double standard for procurement?

    Under a tight budget, some U.S. aid agencies are trying to cut costs by awarding contracts to the cheapest proposals — while others are asking foreign governments to ensure best value. Are both policies consistent?

    By Michael Igoe // 04 February 2014

    Is the U.S. government pursuing a double standard at home and abroad when it comes to aid procurement?

    Faced with a hostile budget environment, U.S. foreign aid agencies have sought creative ways to cut costs in the way they procure goods and services from U.S. businesses and NGOs — in particular, by awarding grants and contracts to bidders that offer the cheapest proposals.

    But at the same time, the U.S. Trade and Development Agency is now involved in an effort to convince foreign governments to award contracts based on “best-value,” since low-cost contracts rarely go to U.S. firms whose proposed projects are typically more expensive than those from other competitors, mainly Chinese.

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    About the author

    • Michael Igoe

      Michael Igoe@AlterIgoe

      Michael Igoe is a Senior Reporter with Devex, based in Washington, D.C. He covers U.S. foreign aid, global health, climate change, and development finance. Prior to joining Devex, Michael researched water management and climate change adaptation in post-Soviet Central Asia, where he also wrote for EurasiaNet. Michael earned his bachelor's degree from Bowdoin College, where he majored in Russian, and his master’s degree from the University of Montana, where he studied international conservation and development.

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