Could Public Land Corp's No-Bid Contract Policy Lead To Sweetheart Deals?09/10/2012
Companies seeking to develop projects on state lands aren’t required to go through a competitive bidding process under recently proposed rules that would govern Hawaii’s controversial Public Land Development Corporation.
And experts on public-private partnerships say that could lead to corruption, favoritism and bloated contracts that could prove costly for taxpayers.
“If there’s no competition at all, then the risk is that of corruption, that someone will find a sweetheart contractor to deal with and these sweetheart contractors will inflate the price,” said Edward Lozowicki, a San Francisco attorney with expertise in construction law and public-private partnerships. “That’s the whole reason to have competitive bidding, to avoid corruption and favoritism.”