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How does performance history impact supplier selection in public sector?

Olivier Mamavi (ICD Paris, Laboratoire de Recherche Appliquée (LARA), Groupe IGS, Paris, France)
Haithem Nagati (ICD Paris, Laboratoire de Recherche Appliquée (LARA), Groupe IGS, Paris, France)
Gilles Pache (Centre de Recherche sur le Transport et la Logistique (CRET-LOG), Aix-Marseille University, Aix-en-Provence, France)
Frederick T. Wehrle (Laboratoire de Recherche Appliquée, ICD Business School, Paris, France AND Pôle de Recherche Interdisciplinaire en Sciences du Management, Paris Sorbonne University, Paris, France)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 2 February 2015

Abstract

Purpose

The purpose of this paper is to study if the performance history impacts supplier selection in the French public sector context. While French public procurement legislation forbids consideration of the past contract wins in supplier selection, public contractors may still rely on contract win history for highly complex transactions.

Design/methodology/approach

Using French Official Journals (BOAMP), the authors collected all public procurement transactions of 976 suppliers that had at least one transaction per year, over a period of six years (between 2006 and 2011). The authors conducted a two-level hierarchical linear auto-regression analysis and a feature evaluation analysis for all transactions.

Findings

The paper finds significant variation between the transactions of different markets, as well as in the overall positive impact of past wins and in the detailed impact patterns and thresholds of each market. The findings may allow refinement of existing contract awarding strategies and of current legislation.

Originality/value

The paper aims at empirically testing whether a supplier’s degree of success in any given year, measured by the number of public contracts won, may have an impact on the likelihood that the same supplier is awarded a public contract the following year. The authors conclude that suppliers retained for public contracts could benefit from building public buyers’ loyalty using a key account selling approach rather than systematically seeking to acquire new contracts.

Keywords

Acknowledgements

The authors would like to thank Marko Robnik-Sikonja, Alexander Ellinger and two anonymous reviewers of Industrial Management & Data Systems for their comments and advice on previous drafts of this paper.

Citation

Mamavi, O., Nagati, H., Pache, G. and Wehrle, F.T. (2015), "How does performance history impact supplier selection in public sector?", Industrial Management & Data Systems, Vol. 115 No. 1, pp. 107-128. https://doi.org/10.1108/IMDS-07-2014-0222

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited