Regulation vs. Self-Governed Compliance in Government Procurement: The Perceived Impact of DII

By Penska, Kenneth; Thai, Khi V. | Journal of Public Budgeting, Accounting & Financial Management, Fall 2000 | Go to article overview

Regulation vs. Self-Governed Compliance in Government Procurement: The Perceived Impact of DII


Penska, Kenneth, Thai, Khi V., Journal of Public Budgeting, Accounting & Financial Management


ABSTRACT. The United States defense industry has had a long history of unethical and illegal business practices. Recent polls find that most Americans believe that their nation's weapon acquisition system is one of the worst managed activities in the public or private sectors and the defense industry is neither efficient nor honestly managed. Although the defense acquisition process has been the subject of many reform efforts, it is reasonable to ask whether these reform efforts have had any success. The Defense Industry Initiative on Business Ethics and Conduct, commonly known as DII, is the defense industry's self-governed program responding to the concern regarding ethical business practices in defense procurement. This study is to assess the Defense Industry Initiative on Business Ethics and Conduct in an attempt to find the perceived impact of this self-governed compliance program.

INTRODUCTION

In the theory of policy-making and budgetary processes, after a program is authorized and appropriated, it is implemented and the implementation has been perceived as a simple phase. This perception about policy implementation was challenged in the 1970s. Since then, policy implementation has been of a great concern because due to bad implementation, many policies/programs failed. This is particularly true in government procurement. Indeed, getting a best bid and contract is only the first step in a sound government procurement process. Assuring that goods or services are delivered in accordance with contract specifications is not an easy task, particularly in defense procurement. In over 200 years of government contracting for national defense, the same problems that plagued defense procurement in the Revolution continue to plague it today. Kickbacks, profiteering, waste, and fraud are just as prevalent today as in colonial times. In an environment where large sums of government funding converge with contractors bidding for huge defense contracts, it is not surprising that scandals have been a major part of the history of defense procurement (Nagle, 1992).

The ineffectiveness of government regulatory policy regarding government defense procurement is clear. Legislation such as the Department of Defense Authorization Act of 1986, the False Claims Amendments Act of 1986, and the amendment to the Anti-Kickback Enforcement Act of 1986 appear to have had little effect on the defense industry's business practices (Dees, 1987). Also in 1986, a major initiative was adopted, known as the Defense Industry Initiative (DII) on Business Ethics and Conduct. This article will provide a brief history of defense procurement, and an overview of DII; and survey the perceptions of key administrators involved in DII about the program compliance.

BRIEF HISTORY OF MILITARY PROCUREMENT

In their procurement history, the U. S. armed forces, which have purchased a sizable amount of goods and services, have had persistent problems with the defense industry. In dealing with these problems, the defense procurement regulations have been needed, but also have become a debatable policy issue.

Developments of Regulations Dealing With Persistent Problems in Defense Procurement

During the Revolutionary War the Continental forces suffered gravely at the hands of suppliers who engaged in fraudulent practices. Axes were delivered without heads. Beef and flour delivered to the troops were spoiled and inedible. Blankets were only one-fourth their proper size. Shoes were too small or fell apart in a day or two because they were poorly made of cheap materials. Casks of meat contained stones and tree roots. Even gunpowder was debased and unusable. "The people at home," observed one Continental officer in 1778, "are destroying the Army by their Conduct much faster than Howe and all his army can possibly do by fighting us" (quoted in Carp, 1984: 65-66).

By the War of 1812, the inefficient, fraud-racked contract system constituted one of the gravest hindrances to military operation throughout the war.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Regulation vs. Self-Governed Compliance in Government Procurement: The Perceived Impact of DII
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.