Showing papers in "Journal of Public Procurement in 2010"
TL;DR: In this article, the authors argue that government procurement should not be seen only as an indirect support measure for development, but also as a direct vehicle for promoting innovation and industries and thus, growth and development.
Abstract: This article sets out to answer two interrelated questions: is it advisable for developing countries to use public procurement efforts for development, and should more developing countries join the World Trade Organization (WTO) Government Procurement Agreement (GPA)? We survey key arguments for and against joining the GPA, and argue that government procurement should not be seen only as an indirect support measure for development, but also as a direct vehicle for promoting innovation and industries and, thus, growth and development. We also show that using public procurement for development assumes high levels of policy capacity, which most developing countries lack. In addition, we show how the GPA as well as other WTO agreements make it complicated for the developing countries to benefit from public procurement for innovation. The article suggests that the developing countries could apply a mix of direct and indirect (so-called soft) public-procurement-for-innovation measures. In order to do this, developing countries need to develop the policy capacity to take advantage of the complex and multi-layered industrial policy space still available under WTO rules.
111 citations
TL;DR: In this paper, a detailed taxonomy of such "horizontal" policies is presented, based on three key distinctions between the following: 1. policies limited to securing compliance with legal requirements and those that go beyond such requirements; 2. policies applied only to the contract awarded, and 3. nine different mechanisms by which policies are implemented in the procurement process.
Abstract: Public procurement is widely used to promote objectives of an economic, environmental and social nature, such as the economic development of disadvantaged social groups. This article elaborates a detailed taxonomy of such “horizontal” policies. This study is valuable, first, to facilitate analysis of the practical phenomenon of horizontal policies and of the policy implications of different approaches and, second, to illuminate and develop the relevant regulatory frameworks under national and international regimes. The taxonomy is based on three key distinctions between the following: 1. policies limited to securing compliance with legal requirements and those that go beyond such requirements; 2. policies applied only to the contract awarded and those that go beyond it; and 3. nine different mechanisms by which policies are implemented in the procurement process.
92 citations
TL;DR: In this article, the authors explored the connection between social cohesion, groupthink, ethical attitudes and ethical behavior of procurement officers and found that social cohesion and groupthink were all significant predictors of ethical behavior.
Abstract: Whereas social cohesion has been widely studied and researched by sociologist and psychologists, its application to public procurement is sparse. This study explores the connection between social cohesion, groupthink, ethical attitudes and ethical behavior of procurement officers. The study is based on a survey of 405 public procurement officers in central government. A cross-sectional survey design was used and a response rate of 58.5% attained. Self report items were used to study all the constructs. All the hypothesized relationships were found to be significant. Social cohesion, groupthink, and ethical attitudes were all significant predictors of ethical behavior, accounting for 56% of the variance. The strength of this prediction suggests the need for concerted policy intervention for dealing with unethical conduct and behavior of the procurement professionals.
47 citations
TL;DR: In this article, the authors provide an overview of perspectives taken from the New Institutional Economics which, they argue, are better able to explain the effects of performance information procurement system (PiPS).
Abstract: Since procurement is seen as a crucial element in project success, many methods have been developed to manage this process and many papers written about this issue. A remarkable contribution in this field comes from Dean Kashiwagi who underpins his support for the Performance Information Procurement System (PiPS) with claims of high project performance and client satisfaction. Kashiwagi’s explanation for PiPS’s success is based on a theoretical framework that is related to staff members’ ability to deal appropriately with information by making sound decisions based on more than implicit expectations and tacit experience. This does not, however, provide a fully satisfactory explanation. Our paper provides an overview of perspectives taken from the New Institutional Economics which, we argue, are better able to explain the effects of PiPS. The linking of these ideas to innovative PiPS elements makes it possible to effectively select and apply appropriate PiPS elements within suitable projects in the Dutch construction industry. This will enhance industry performance and should thus be of interest to all stakeholders.
37 citations
TL;DR: In this paper, differences in perceptions regarding the value and benefits of certification among public sector procurement practitioners are examined and found that there is growing awareness by both those holding certification and those who are not certified that certification leads to advanced knowledge and skills within the procurement area.
Abstract: This article discusses the unmet need for widespread certification and professionalization of those involved in public procurement. Through original data analysis, differences in perceptions regarding the value and benefits of certification among public sector procurement practitioners are examined. Findings indicate that there is growing awareness by both those holding certification and those who are not certified that certification leads to advanced knowledge and skills within the procurement area. Further, job advancement and occupational growth is perceived to be directly related to certification, and that certification holders enjoy special privilege within occupational norms.
27 citations
TL;DR: In this paper, the inclusion of social clauses on gender equality that appear in the different phases of a procurement procedure in the Spanish Public Procurement Law (Law 30/2007, 30th October, on Public Sector Contracts).
Abstract: Public procurement, as well as constituting a means of providing goods and services, also represents a powerful legal instrument available to contracting authorities to ensure compliance with secondary or noncommercial goals. Among these secondary objectives, equality between women and men may be highlighted. The possibility of integrating social concerns into public procurement is envisaged in the Community Directives on public procurement and has also been incorporated in the legal systems of various Member States. This paper studies the inclusion of social clauses on gender equality that appear in the different phases of a procurement procedure in the Spanish Public Procurement Law (Law 30/2007, 30th October, on Public Sector Contracts).
18 citations
TL;DR: In this article, an exploratory study on a mature indicator of evaluation of public e-procurement systems is presented, where the authors compare Korea's case with those of the U.S., Australia, and New Zealand to show that the e-procurement system is not developed on a large scale in comparison with the US and Korea that are adopting a central supply method.
Abstract: There are Increasing applications of e-procurement by government along with active e-commerce by the private sector in an advanced information society. The Korea e-Procurement System (G2B) is recognized as a successful example of substantially enhancing procurement process efficiency by making it transparent and professional. An analytic work is needed to systematically assess the functionality and role of the system. This paper's purpose is the exploratory study on a mature indicator of evaluation of public e-procurement systems. This paper compares Korea’s case with those of the U.S., Australia, and New Zealand to show that in Australia and New Zealand, which are adopting a as dispersive supply method, the e-procurement system is not developed on a large scale in comparison with the US and Korea that are adopting a central supply method. There are some differences among the four countries according to the trait of their procurement institution and base value in terms of capability of system. Different usefulness for e-procurement depends on the public procurement institution in each country. This paper suggests that eprocurement systems can be used helping purchasing goods and services most reasonably. This paper can help us evaluating substantial value of eprocurement system clearly.
14 citations
TL;DR: In this paper, the authors developed a comprehensive framework of achieving supplier delivery performance based on contract governance mechanisms, justice perceptions and ethical behavior using cross sectional survey data from public procuring and disposing entities (PDEs) in Uganda.
Abstract: The purpose of this paper is to develop a comprehensive framework of achieving supplier delivery performance based on contract governance mechanisms, justice perceptions and ethical behavior using cross sectional survey data from public procuring and disposing entities (PDEs) in Uganda. Public procurement contract governance covers the design, development, implementation and enforcement of contracts. It serves to align interests of the contracting parties, reduce opportunistic behavior, lower transaction costs, promote justice perceptions, improve ethical behavior and achieve value for money procurement. Poorly managed procurement contracts result in conflicts, yet in many developing countries only rich suppliers can afford to resolve disputes through courts. For other suppliers, justice is out of reach. While it has been assumed that contracts result in good performance, little research has been carried out to corroborate this assumption. In this paper we provide theoretical, empirical and policy implications of supplier delivery performance.
13 citations
TL;DR: In this paper, the authors review some of the newest and most promising advances in auction theory with an eye to applications to procurement practice, focusing in particular on four topics related to multidimensional auctions: 1) how to define a proper scoring rule when the awarding bodies lack the necessary information regarding its own preferences and suppliers' technology.
Abstract: The main aim of this paper is to review some of the newest and most promising advances in auction theory with an eye to applications to procurement practice. Here we focus in particular on four topics related to multidimensional auctions: 1) how to define a proper scoring rule when the awarding bodies lack the necessary information regarding its own preferences and suppliers’ technology; 2) how to cope with the information disclosure policy regarding the discretional evaluation of some aspects of each contractual proposal; 3) how to use contractors’ reputations based on their past performance in the awarding process; 4) how to control the risk of collusion and corruption in the awarding phase.
11 citations
TL;DR: In this article, the authors focus on certain aspects of competition and transparency in the award of PPP contracts, vis-a-vis normal public procurement contracts, and compare the relevant regulations and case law in India applicable to unsolicited proposals (UNPs) with that in the United States and those under available international frameworks.
Abstract: Traditional models of full and open competition are generally applied for ordinary public procurement contracts, whereas special competitive procedures (such as unsolicited proposals) are permissible under various international and domestic frameworks for “Public-Private Partnership” (PPP) contracts. In case of the latter category of contracts, some concerns about relative lack of transparency and competition in the award process have begun to surface, while they are being increasingly relied upon for development of public infrastructure and services. This paper focuses on certain aspects of competition and transparency in the award of PPP contracts, vis-a-vis normal public procurement contracts. To facilitate a sharper identification of legal issues, it compares the relevant regulations and case law in India applicable to unsolicited proposals (UNPs) with that in the United States and those under available international frameworks. It concludes with recommendations on identified legal dimensions of UNPs with reference to government obligations on transparency and competition, so as to adequately preserve these elements in procurement of PPP infrastructure projects.
9 citations
TL;DR: In this article, the authors provide an analysis of the fragmented sphere of international agreements on public procurement law in the European Union and describe how these agreements can be subdivided within certain categories and certain types and how this categorisation and typification is vital with regard to the legal effect of a particular agreement.
Abstract: This paper provides an analysis of the fragmented sphere of international agreements on public procurement law in the European Union. After a comprehensive review of the most important European Communities agreements on public procurement, this paper describes how these agreements can be subdivided within certain categories and certain types and how this categorisation and typification is vital with regard to the legal effect of a particular agreement. In this regard, it is argued that EC agreements on public procurement (including the World Trade Organization Agreement on Government Procurement) are, in principle, capable of direct applicability. Thus, disappointed bidders are - from an EU perspective -, in general, able to invoke the provisions of such EC agreements before national courts and authorities, based upon the non-discrimination principles incorporated in such agreements.
TL;DR: In this paper, the authors examined the results of the first year of the new Russian state procurement law, 94-FZ, through the lens of the 88 regional government web portals created to implement it.
Abstract: This paper examines the results of the first year of the new Russian state procurement law, 94-FZ, through the lens of the 88 regional government web portals created to implement it. Benchmarks are developed and applied to them, comparing results with two contemporaneous Russian studies. Almost all regions have provided core information provision functions, but other missing features and the lack of automation mean that more than half may have done little more than fulfill formal requirements. More website features do seem to correspond to more transparency, but the law and the web portals have done little so far to combat endemic, institutional corruption of the state procurement process.
TL;DR: Recommendations are outlined for further research in assessing the suitability or otherwise of these new procurement methods, both for construction projects generally and specifically for healthcare facilities.
Abstract: In the UK healthcare sector, funding and provision of public care facilities has been primarily the responsibility of government through the National Health Service (NHS). After decades of under-investment and consequent effects on the quality of care, new procurement routes are currently being used to improve the standards of facilities to meet the requirements of modern care services. This paper critically reviews these new procurement routes in terms of concepts and suitable areas of application, and examines how the principal procurement methods have evolved into the forms used for UK healthcare facilities. The paper outlines recommendations for further research in assessing the suitability or otherwise of these new procurement methods, both for construction projects generally and specifically for healthcare facilities.
TL;DR: In this paper, the potential impact of FAR Subpart 3:10, Contractor Code of Business Ethics and Conduct on the system for regulating defense procurement integrity is examined, and the authors argue that the adoption of the new contractor code of business ethics and conduct will not change the already heavy emphasis placed on full compliance with criminal and civil statutes directed at protecting procurement integrity.
Abstract: The article examines the potential impact of FAR Subpart 3:10, Contractor Code of Business Ethics and Conduct on the system for regulating defense procurement integrity. The article argues that the adoption of the new Contractor Code of Business Ethics and Conduct will not change the already heavy emphasis placed on full compliance with criminal and civil statutes directed at protecting procurement integrity. The article also argues that the defense procurement integrity program should devote equal attention to adoption of non-criminal standards of conduct directed at assuring the impartiality and objectivity of contractor employees. Finally, the article argues that in order to rebuild public trust in contractor employees the FAR Council should require contractor employees who perform duties similar to full-time federal employees to comply with a new uniform set of non-criminal standards of conduct rules directed at assuring the impartiality and objectivity of contractor employees.
TL;DR: This paper examined operating performance and corporate governance of 181 companies over the period 2003-2008 (563 firm-year observations), whose customers are governmental agencies, and contrasted their performance to that of companies that have no governmental customers.
Abstract: This paper examines operating performance and corporate governance of 181 companies over the period 2003- 2008 (563 firm-year observations), whose customers are governmental agencies, and contrasts their performance to that of companies that have no governmental customers. The sample firms are classified into firms whose customers are (1) domestic governmental agencies, (2) foreign governmental agencies, (3) state governmental agencies, or (4) different combinations of the 3 types. The results show that firms that supply domestic and/or foreign government customers have significantly higher operating income, profit margin and return on asset and lower operating expenses than firms that supply state government customers and than their matched industry peers who do not supply any government customers. These government-supplier firms have lower managerial ownership than their industry peers which suggests potential room for agency problems to develop. Firms that supply domestic and/or foreign government customers have significantly lower executive compensation than firms that supply state government customers and than their matched industry peers.
TL;DR: In this article, the authors argue that one reason behind the disappointing results may be Korea's negotiating text, heavily influenced by the GPA, that includes several provisions which may hinder efficiency and add to procurement costs, and they propose a policy option for Korean FTA negotiators -a "half track" approach where Korea can offer mutual national treatment to the suppliers of the FTA partner with no (or very little) additional procedural or transparency requirements such as those associated with the GPA -type provisions.
Abstract: The government procurement market is one of the few markets where substantial trade barriers still exist. Many countries, including Korea, have been trying to reduce these market barriers through the World trade Organization (WTO) plurilateral government procurement agreement (GPA) and foreign trade agreement (FTA) negotiations. The actual results have been somewhat disappointing. This paper argues that one factor behind the disappointing results may be Korea’s negotiating text, heavily influenced by the GPA, that includes several provisions which may hinder efficiency and add to procurement costs. The paper offers a policy option for Korean FTA negotiators - a “half track” approach where Korea can offer mutual national treatment to the suppliers of the FTA partner with no (or very little) additional procedural or transparency requirements such as those associated with the GPA -type provisions.
TL;DR: In this article, the authors focus on the size of contracts in public-private partnership (PPP) contracts of water utilities and show that for small contracts many firms will apply, but at the cost of scale diseconomies in operation.
Abstract: In public-private partnership (PPP) contracts of water utilities, of particular concern is lack of market competition. This paper focuses on the size of contracts. If governments design a large-scale transaction, economies of scale in service operation can be expected, but competition in auctions may be compromised. For small contracts many firms will apply, but at the cost of scale diseconomies in operation. The estimated cost function of PPP water utilities indicates that economies of scale exist but diminish quickly as production increases. There is no rationale for more than 300 million cubic meters of water service concessions under a single package, taking a risk of little competition. Conversely, less than 50 million cubic meters of concessions are too small; the bundling approach is required.