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Bid Protests
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Claims filed by a contractor against a government organization to dispute a contract awarded to a competitor
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"Hollow State"
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Government agencies becoming increasingly dependent on networks of private parties to keep government running
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Contract
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An agreement that is legally enforceable and reflects the relationship between two or more parties for a specific period of time
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Contracting-out
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In government, refers to the decision to forego producing a good or service internally, instead opting to contract with a private/nonprofit sector entity while maintaining government oversight
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Cooling-off Period
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A time frame during which a former government employee cannot be employed as an industry lobbyist in the private sector after leaving a government job; put in place to reduce any unfair influence or insider knowledge that persists
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Cost-reimbursement Contracts
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Contracts that agree to pay a contractor based on the actual costs; these contracts can use incentives to further align the contractor's behavior with the government's needs
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Fixed-cost Contrasts
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Contracts that agree to pay the contractor a set amount; these contracts are used when little uncertainty exists about the specifications or requirements of the contracted activity
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Make-or-buy Decision
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The consideration of whether to produce a good or service in-house or to contract out; influence by cost, required expertise, and commercial nature of the work
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Outsourcing
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In government, refers to the decision to forego producing a good or service internally; instead, opting to contract with a private/nonprofit sector entity while maintaining government oversight
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Principal-agent theory
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Describes the problematic scenario in which the agent (contractor) can potentially take advantage of the principal (government) due to information asymmetries between the parties
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Privatization
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The complete transfer of a function from the public sector to the private sector, often establishing a formal, regulatory relationship with government
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Production
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Refers to the actual generation of a good or service
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Provision
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Refers to the obligation to deliver a good or service
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Public-private Partnerships (P3s)
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Contractual relationships between government and private firms to deliver either existing or newly-developed public services
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Relational Contracting
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Refers to the central role of relationships in supplementing the formal contract as the public sector cedes authority to third parties
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Request for Proposal (RFP)
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In contracting, refers to the document that formally solicits proposals/bids from potential contractors
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Revolving Door
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Refers to the relative ease with which government employees move to private industry lobbying positions, and industry lobbyists move to government positions
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Set-asides
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Specific shares of the available contracting activity that are earmarked for smaller businesses and those that are owned by traditionally disadvantaged groups; also referred to as "bid preferences"
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Sole-source Contracting
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A noncompetitive process in which there are negotiations with only one contractor
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Public Values
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A commitment to transparency, quality, efficiency, and equity
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"Yellow Pages Test"
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If a service has enough easily visible and reputable private providers, it should be contracted out
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Kelman's Goals of Public Contracting
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- Get a good deal
- Prevent corruption and promote integrity
- Fairness
- Prevent corruption and promote integrity
- Fairness
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Pay-for-Success
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"Investors provide the upfront funding for the program, nonprofits deliver the services, and an evaluator assesses the success of efforts over time. The original contract and the performance of the program, based on the outcome measures collected by the evaluator, determine whether government payments are made to reimburse and reward the investors"
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Level of Contract Monitoring Depends On and Usually Increases With...
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- The complexity of the contracted tasks
- The amount of direct contact between the contractor and the public
- The use of cost-reimbursement pricing
- The amount of direct contact between the contractor and the public
- The use of cost-reimbursement pricing
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Adjudicatory Procedures
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Relating to the administrative adjudication process, wherein an executive agency's administrative law judge (ALJ) rules on claims brought before or against the agency, typically pertaining to matters of procedural due process
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Administrative Law
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Body of law that translates constitutional principles regarding the delegation of legislative authority and procedural due process into action; provides a framework for the rulemaking process, hearing grievances, and enforcement of rules and laws
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Administrative Law Judge
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A judge whose function is to hear cases involving laws and regulations pertaining to the agency for which they work; they ensure fairness in administrative proceedings by preserving the due process rights of claimants against the agency
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Administrative Procedure Act
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Passed in 1946 to clarify the rulemaking and adjudication processes of administrative agencies, control their authority to enforce laws and regulations, and make their activities more open to public participation
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Constitutional Law
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Body of law that establishes the powers and responsibilities of government, and the rights and responsibilities of citizens, rooted in the Constitution
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Delegated Lawmaking
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Refers to the administrative process of rulemaking, wherein executive agencies design the implementation of a law by establishing rules and regulations, as delegated by the legislature
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Public Law
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Body of law pertaining to the organization and processes of government, the relations between state and its citizens, the responsibilities of government officials, and the relations between political jurisdictions
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Qualified Immunity
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A form of immunity that shields public officials from liability for civil damages as long as they do not violate an individual's rights and the claim arises from the performance of their job duties in good faith and with due care
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Rulemaking
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The process by which executive agencies transform laws into programs by establishing the rules and regulations for their implementation
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Open Government Act of 2007
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Requires agencies to to designate chief information officers
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Reasons for reviewing procedural decisions of agencies per Section 706 of the APA
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- Arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law
- Contrary to constitutional right, power, privilege, or immunity
- In excess of statutory jurisdiction, authority, or limitations, or short of statutory right
- Without observance of procedure required by law
- Unsupported by substantial evidence
- Unwarranted by the facts
- Contrary to constitutional right, power, privilege, or immunity
- In excess of statutory jurisdiction, authority, or limitations, or short of statutory right
- Without observance of procedure required by law
- Unsupported by substantial evidence
- Unwarranted by the facts
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Categories of Rules Agencies Write
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- Legislative: Have the force of law
- Procedural: Specify how operations are to be conducted
- Interpretive: Explains terms and guidelines
- Procedural: Specify how operations are to be conducted
- Interpretive: Explains terms and guidelines
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Qualified Decisional Independence
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Administrative law judges must be impartial in conducting hearings. They must also decide cases based on facts and agency policy. In return, they can make decisions free of agency pressure or pressure from other parties
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Continuum of Public-Sector Contracting Activities
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- Simple purchase (transactional relationship)
- Contracting-out/Outsourcing (oversight relationship)
- Relational Contracting (collaborative relationship)
- Public-Private Partnership (shared risk and monitoring relationship)
- Privatization (regulatory relationship)
- Contracting-out/Outsourcing (oversight relationship)
- Relational Contracting (collaborative relationship)
- Public-Private Partnership (shared risk and monitoring relationship)
- Privatization (regulatory relationship)
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Basic Contracting Process
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- Make-or-Buy Decision
- Structure Contract
- Choose a Contractor
- Contract Administration
- Structure Contract
- Choose a Contractor
- Contract Administration
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False Claims Act
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Incentivizes whistleblowers who file lawsuits on behalf of the federal government when there are improprieties in contractual relationships.