The American Federal Contracting Response to the Russo-Ukrainian War

• In Event: Conflict and Changes in the U.S and Abroad

Abstract

The systems sustaining our economic and democratic stability have encountered several threats in the last few years— from the COVID-19 supply chain disruptions to the war in Ukraine, requiring the immediate action of the federal government. Resource dependence theory associates organizational responses to environmental threats with the management of resources— which is not only based on economic goals, but also on values such as protecting democracy and saving human lives. This also means that procurement and budgeting are highly political. Even as a geographically distant international affair, this catastrophe is a massive negative externality that is disrupting the world and its defense systems and supply chains. Drawing on federal procurement data, this essay analyses the responses to the Russo-Ukrainian War. While public bureaucracies are accustomed to routines, they struggle with rapid change. Given that there are fewer suppliers, and the government might be the only buyer, complex services and products, such as war equipment, pose greater acquisition challenges. Using the USAspending.gov data system, I analyze the impact of the war on U.S. defense contracting, budgeting, and policies.

Authors

• Marjorie De la Cruz, Florida International University

• Milena I. Neshkova, Florida International University