Demobilization : $b our industrial and military demobilization after the armistice, 1918-1920Crowell, Benedict
History
Demobilization : $b our industrial and military demobilization after the armistice, 1918-1920
Crowell, Benedict
United States. Army. American Expeditionary Forces -- Demobilization; World War, 1914-1918 -- United States
It follows that the instrument which commanded and set in motion all
this effort--the war contract--must have been a thing exceedingly
important to America. The 30,000 war department contracts, as a body,
constituted in themselves the charter under which the preponderant
part of American industry existed for nearly two years. As wisdom or
unwisdom appeared written into the provisions of the war contracts,
so fared well or badly not only the half of the population directly
associated with industry, but the other half as well, and the
Government, too. As an example, it was charged with some degree of
justice that one great class of war department contracts, the so-called
cost-plus contracts, was the chief factor in the rapidly mounting
cost of living during the war. In other ways also these writings,
which defined the terms of existence for American industry, profoundly
affected every person in the United States. We may leave to lawyers and
economists the discussion of the academic legal questions involved in
the war contracts and still find in them plenty of interest common to
all.
When an individual person goes out to buy anything, he normally
procures it by paying the price fixed by the seller. Business houses,
too, commonly follow this custom in procuring their usual supplies. If,
however, the individual person or business house is going into some
relatively large operation in which he will require goods and services
in extensive quantity, then it is customary to ask for bids from those
in a position to supply the needs, and to contract thereafter with
the concern which offers to supply the goods and services at the best
price. The law requires the Government to follow this procedure in
procuring practically all its supplies. Each federal department must
advertise its needs publicly, giving complete specifications, must call
publicly for bids to supply the materials specified, and must allot
the business to the one tendering the best bid; provided only that the
bidder is responsible and is known to have the ability to produce goods
of the quality desired. The courts have held that a contract written
under any other conditions is void.
The law, however, permits certain exceptions. The War Department,
for instance, is permitted by law to increase the size of a contract
already properly made. It can deal directly, without advertising, with
a manufacturer who is a sole source of supply, provided that previous
advertising has elicited no bids. These exceptions are the reflection
of experience in governing, exceptions granted by Congress to the end
that the Government’s necessary business may not be impeded by the
operation of the legal checks and balances.
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