ABSTRACT
Procurement systems in state and local governments across the United States (US) are in transition. Growing awareness of rule-driven processes, inefficient delivery systems and poor stewardship of public resources have negatively impacted upon key stakeholders’ perception of the procurement function. In response to the growing unease, procurement professionals are being challenged to develop new adaptable structures and processes that devolve purchasing responsibility, yet maintain accountability and control – what we term the public procurement fraud/red tape dilemma. In this chapter, we identify some trends in public procurement in the United States that have altered the relationship between the purpose of procurement control (fraud reduction) and the inefficiencies associated with increased institutionalization of bureaucratic reform (red tape). This case suggests that given the nature of the public procurement fraud/red tape dilemma, procurement professionals will be continually called upon to balance the inherent tensions (reduce corruption and reduce red tape) with little direct guidance from policy-makers and elected officials.
