USAID's Use of Lowest-Price Contracting Draws Critics

Law360, New York (August 26, 2013, 8:56 PM EDT) -- The U.S. Agency for International Development has agreed to rethink a protested $2 billion anti-poverty contract, a decision that has sparked a debate about the wisdom of relying on lowest-price contractors for the kinds of high-stakes and complicated services USAID plans to procure.

USAID promised Friday to take corrective action in response to a protest by Development Alternatives Inc., which argued that USAID's Economic Growth for Poverty Reduction contract solicitation was fundamentally flawed. The solicitation would have selected 10 contractors, five of them small businesses, based...
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