Why are contingent fee arrangements for soliciting government contracts considered contrary to public policy?

Contingent fee arrangements for soliciting government contracts are viewed as contrary to public policy primarily because they may lead to the exercise of improper influence. This concern arises from the potential for these arrangements to compromise the integrity of the procurement process.

When a fee is contingent upon the successful award of a contract, it creates a financial incentive for individuals to exert undue influence or pressure on decision-makers to secure such contracts. This undermines the fairness and impartiality that are essential in the procurement process, as it introduces a conflict of interest where the desire for personal gain might overshadow the objective evaluation of proposals.

Governments strive to maintain a transparent and equitable procurement process, where contracts are awarded based on merit rather than personal connections or financial incentives. Therefore, the use of contingent fees is prohibited in many jurisdictions to protect the integrity of government contracting and ensure that the public interest is prioritized.