Federal Procurement Vulnerability Linked to Campaign Finance Spending

Federal procurement, an industry exceeding $1 trillion annually, is described as uniquely vulnerable to corruption. Companies competing for federal contracts have incentives to curry favor with officials who award the contracts. This practice is facilitated by inadequate federal rules regarding contractor campaign spending and the legal precedents set by the Supreme Court regarding campaign finance law. Companies that donate to candidates routinely receive larger federal contracts than non-donating competitors.

The link between campaign donations and federal contracting benefits suggests a significant return on investment for companies that contribute to political campaigns. The current regulatory environment allows major federal contractors to spend millions on federal elections through their PACs and affiliated entities.