Defense Procurement Reform And Defence Integrity Pacts Workshop

Dominic Scott, 12th IACC, Workshop report, Procurement

Main Issues Covered

 

Defence and security reform efforts in the Colombian defence sector

The Latvian experience in defence procurement reform

Use of defence expertise in defence procurement reform, in particular in the implementation of Defence Integrity Pacts in Colombia and Poland

Lessons in defence procurement reform from the USA – even in sophisticated environments, defence procurement is riddled with corruption

 

Main Outcomes

 

Defence and security institutions need to be strengthened against corruption

Civilian control and oversight of the defence and security sector is essential, eg through civilian Minister of Defence, and Congress must monitor performance of the sector

Competition is essential. Single source contracts are commonplace. Earmarking must be tackled (a largely US phenomenon)

Civil society involvement in the sector is of great value: it helps a very closed and secretive ministry to learn how to deal with outsiders and gain the public’s trust, and it helps governments to gain the trust of international companies who are concerned about corruption

Defence integrity pacts can be effective at fighting corruption, and the associated defence expertise represents excellent value for money

The US defence procurement environment is sophisticated but is riddled with corruption risk

Offsets represent a significant corruption risk, and this issue should be tackled

 

Recommendations, Follow-up Actions

 

The OECD would be a useful ally in the fight against offsets, a significant corruption risk

Off-budget expenditures need to be reduced, as a significant corruption risk. Building awareness of the problem might be a good first step

Earmarking is a US practice that represents a corruption risk. Building awareness of the problem might be a good first step

Civilian defence ministers help to bring the military to account

Independent reviews of the defence and security sector, eg by NGOs are most valuable

Sealed bids are very corruption prone. But frameworks contracting (large standing contracts) are characterized by almost no transparency and a lack of competition (Chris Yukins, referring to the US)

 

Workshop Highlights (including interesting quotes)

 

Offsets are one of the most dangerous elements of defence procurement (Steve Shaw, US Air Force, debarment and suspension official)

By far the biggest problem in the US is the practice of earmarking (Steve Shaw, with reference to Duke Cunningham scandal)

Civilians in the defence and security sector help to bring the military to account (Alan Waldron, Air Commodore UK Royal Air Force (retired))

A degree of transparency in defence procurement does not ensure that the tenders are free of corruption, as specifications can still be adjusted, purchase prices inflated and procurement forms can be designed to favour certain providers (Inese Voika)

docDefense Procurement Reform And Defence Integrity Pacts Workshop

Brazil 2012

Brazil 2012

IACC Video

IACC Video

FaceBook

FaceBook