20 March 2007

Setting the terms

Apparently, there's a crucial bit missing from AGIA - how do you decide who gets the contract based on the proposals that are submitted? When you need someone to pave your driveway, you probably just get a couple of bids and take the lowest. But with all the factors surrounding a gas pipeline, low bid probably won't get you where you need to be.

I don't know how to resolve this issue but I did hear one interesting thought today: the conditions for different entities should be different. For instance:

  • If Exxon wants to be the winning bidder, make them - finally - pay the fishermen in the Gulf of Alaska who still haven't got their money from the 1989 spill.
  • If BP wants to be the winning bidder, make them spend more money on safety and corrosion prevention.
The list could be longer, of course, but you get the idea.


First Alaskan Man said...

Agreed; perhaps prefacing bids with “All businesses in good standing”

Anonymous said...

Right on!