> if only we could punish these few bad apples - punish those scheming, underbidding contractors, then the problem would disappear

I'm criticizing a system that incentives optimistic initial bids that are later revised up. A bad system doesn't need bad actors to produce bad outcomes. A $275 million bid ballooning to $500 million without any competitive pressure is a bad outcome.

American infrastructure costs are higher than production factors, e.g. land, material and labour cost differentials, explain [1]. Our auction mechanics are called out by experts as a big part of the problem.

[1] http://marroninstitute.nyu.edu/content/blog/is-u.s.-infrastr...