The Government Contract as an Administrative Device

A considerable fraction of the United States technical assistance program is carried out by contract. Profit contracts are traditional with the government. Contracts with voluntary organizations are rooted in religious missions and war relief. University contracts are new but have quickly reached considerable proportions. The typical university con tract is for a term of three years and is related directly to an institution in the host country with the United States Govern ment acting as a third party. There have been many prob lems with these contracts but many adjustments have been made by the International Cooperation Administration. An Office of Contract Relations has been created, policies adopted, a manual and an illustrative contract published. Within that Office, a basic division has been made in the handling of profit and nonprofit contracts. Security clearance, an unsympathetic Congress, understaffing within the ICA itself, and inadequate opportunity for preparation to enter upon contracts and once in, to study and plan prior to commencing operations, are among the remaining problems. The universities on the whole have done well, but there have been failures. Co-ordination of contract and Mission efforts in the field has been a continu ing problem, but have been considerably ameliorated recently. The balance sheet shows that there has been profit for all concerned. Finally there are presented ten operating assump tions for the newcomer to the field.