While there are numerous studies documenting and championing different procurement approaches, they are not explicitly linked with using innovative products and practices. Procurement laws and practices among states and jurisdictions vary significantly. To date, there is no well-recognized national policy guidance for procurement reform in transportation that explicitly targets and encourages innovation. This observation, while obvious, is nevertheless important. While value engineering has been used successfully in many transportation procurements as well as in other industries, many officials and contractors are not familiar with this approach.
Procurements are often administratively burdensome and overly bureaucratic.
There are no incentives for risk-taking when bidding on or executing a project. Government project managers micromanage projects, often stifling innovation. Allow infrastructure owners to take factors other than first cost into account when evaluating project bids. Provide performance incentives to contractors to use innovative methods, materials, and technologies during completion of the project. Allocate legal and financial risks fairly to all parties involved.