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An increasing number of Danish municipalities wish to minimize tax avoidance due to profit shifting in their public procurement. To facilitate this effort, this study aims to develop a firm-level indicator to assess the potential risk of profit shifting (PS-risk) from Danish subsidiaries of multinational corporations to subsidiaries in low-tax jurisdictions.

Drawing from previous research, PS-risk is assumed to depend on the maximum difference in the effective corporate tax rate between the Danish subsidiary and other subsidiaries under the global ultimate owner, in conjunction with the tax regulations relevant to profit shifting. The top 400 contractors in Danish municipalities from 2017 to 2019 are identified and their relative PS-risk is estimated by combining information about corporate ownership structure with country-specific information on corporate tax rates, tax regulations and profit shifting from three independent data sets.

The PS-risk estimates are highly significantly positively correlated across the data sets and show that 17%–23% of the total procurement sum of the Danish municipalities has been spent on contracts with corporations having a medium to high PS-risk. On average, PS-risk is highest for large non-Scandinavian multinational contractors in sectors such as construction, health and information processing.

Danish public procurers may use the indicator to screen potential suppliers and, if procurement regulations permit, to ensure high-PS-risk bidders document their tax practices.

The PS-risk indicator is novel, and to the best of the authors’ knowledge, the analysis provides the first estimate of PS-risk in Danish public procurement.

The purpose of this paper is to show that technical complexity in construction projects is intensified by complexity in public decision making. Public authorities need to build on the conflicting imperatives of fostering cooperation with their (potential) contractors and following strict procurement regulations to enhance competition.

The paper uses a comparative analysis of the English and Belgian legal systems. The comparison is based on traditional legal analysis of the primary sources, cases and their scholarly comments. It is supplemented, when appropriate, by project management concepts.

The analysis in the paper suggests that awarding authorities do not always resolve the conflict between cooperation and competition for themselves. There is a range of alternative techniques embedded in the legal system.

The paper suggests that developing tools for successful construction processes requires perspectives building in both law and project management, taking into account the institutional contexts in which projects are carried out.

The ways in which the implementation of EU procurement directives interacts with the dynamics particular to legal systems, and therefore diverges in their actual results, are often overlooked as the literature more often studies the harmonizing effects of these EU directives within the internal market.

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims to investigate the ways in which the accelerating demand for increased security of supply of equipment and supplies to the Armed Forces requires adaptability in the procurement process that is governed by laws on public procurement (PP).

This paper is based on a review of current literature as well as empirical data obtained through interviews with representatives from the Swedish Defence Materiel Administration and the Swedish defence industry.

Collaboration with the globalized defence industry requires new approaches, where the PP rules make procurement of a safe supply of defence equipment difficult.

The study's empirical data and findings are based on the Swedish context. In order to draw more general conclusions in a defence context, the study should be expanded to cover more nations.

The findings will enable the defence industry and the procurement authorizations to better understand the requirements of Armed Forces, and how to cooperate under applicable legal and regulatory requirements.

The paper extends the extant body of academic knowledge of the security of supply into the defence sector. It serves as a first step towards articulating a call for new approaches to collaboration in defence supply chains.

The purpose of this paper is to explore whether opportunities for fraud and corruption might be reduced or increased by rules governing public procurement. The focus is on specific European legislation – Procurement Directive 2004/18 on the coordination of procedures for the award of contracts for public works, public supply and public services by public bodies within all EU Member States – however similar issues would arise in other jurisdictions.

The procurement process is examined in relation to three stages of procedure: preparation of specifications, selection of tenderers, and execution of contracts, within each of which some specific risks (red flags) are identified.

Particular risks that may not have been sufficiently addressed, in terms of research or legislation, arise at the first of these stages; accordingly this paper focuses there. Generally, risks are summarised in terms of insider‐driven specifications, low visibility of procurement processes, and ample opportunities for renegotiation of terms. Risks may be increased by innovative procurement practices that have the effect of extending the manoeuvring between tenderers and public bodies, such as competitive dialogue.

Fraud and corruption risk in public procurement is an area deserving detailed and comparative study, with special attention to the pre‐contracting stage. Research on this topic within EU Member States should go hand in hand with enquiry into international procurement, and into the EC's own rules as applied by its institutions and bodies.

Suggestions for risk‐reduction are put forward in relation to quality standards and pre‐award publicity.

After some time as the Cinderella of crime policies, large‐scale frauds attract greater interest. This paper gives grounds for asking whether, in relation to procurement fraud, a combination of traditional practices and modernisation may outpace anti‐fraud measures.

The purpose of this paper is to propose and test a multi-criteria decision analysis (MCDA) approach based on an additive value function (AVF) to select the most economically advantageous tender under European Union public procurement regulations.

A case study in which the AVF tender evaluation model is constructed by the procurement personnel and the results of the original, real-life public procurement evaluation model are compared to those discovered by the MCDA approach.

The AVF model captures the preferences of the procurement authority in a more reliable and transparent manner than commonly used evaluation models based on scoring formulas.

While commonly used in public procurement, relative scoring formulas can neither present the preferences of a procurement unit accurately nor do they enable bidders to draft bids according to these preferences. The proposed MCDA approach can achieve both.

The contribution of this paper is threefold. First, the successful construction of the AVF model with procurement personnel is introduced. Second, the model is used in an actual, real-life case. Third, a thoughtful comparison of features, structures and results of the AVF model and the evaluation model using scoring formulas is presented.

This study aims to explore the experiences of using competitive dialogue (CD) as a procurement procedure and the freedom it provides to the contracting parties in Norway.

This study opted for qualitative research design. Data were collected from four case projects through document reviews and in-depth interviews with procurement experts and key contract partners of the projects.

Results indicate that CD has some room for maneuver that is worth trying. Furthermore, the research identified several measures that can be implemented to use the procedure effectively. Contracting parties that have used the procedure have had various positive experiences.

The findings have implications in improving project outputs, building better trust and cooperation between the contracting parties and better use of public money on projects that have lasting outcomes for the society.

The authors studied four actual projects that used CD as a procurement procedure and aimed to provide first-hand information on the degree of freedom that it offered to the contracting parties.

The study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation.

PCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts.

The UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct.

The study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts.

The study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme.

The study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.

This chapter focuses on policy intervention that has grown in popularity in the UK since the financial crisis of 2008. The focus is on inclusive growth and more specifically, community wealth building. The concept has been picked up by institutions and think tanks at multiple scales from the OECD to local government. We aim to address the tensions in community wealth building and in particular how local authorities in the UK are adjusting their procurements strategies to increase the tendering capabilities of SMEs in their political geography.

We introduce a UK-based study utilising an ESRC-funded case study, desktop research and semi-structured interviews to investigate how well the region of Greater Manchester (GM) ecosystem was equipped to prepare small firms to learn how to compete for public contracts with evidence applicable to other large-scale tenders.

Overall, at the time of writing business support across GM does not create the value proposition of enabling small firms to be capable at tendering and thus undermines community wealth building (CWB) efforts. The advice on offer is sparse; it offers partial or no advice about different capabilities and is often limited to simple guidance stating procurement rules and compliance demands. Information is often abstract and technical support is also fragmented, making it unlikely that small firms will find resources. Advice fails to engage with evidence on how small firms learn and to provide a learning process. In particular, support to raise absorptive capacity and strategic commitment to tendering, build basic tender readiness and develop and refresh tendering capability is not evident. Training, coaching and peer learning are largely absent.

UK appears to be an experimental ground for CWB with dedicated think tanks and several examples such as the ‘Preston Model’. GM is a suitably sized and comparable region to offer transferable knowledge and indicators to support regions to innovate. We offer a ‘Dashboard of Priorities’ to enhance business support to SMEs so they can win at tendering, thus strengthening CWB policy and impact. Furthermore, we are adding clarity to a fuzzy definition of CWB and define inclusive procurement. We assist global policymakers to answer the fundamental question; are we doing all that we can with these significant resources to create an economy which truly benefits the people? By examining the ideas of community wealth building and inclusive procurement from a local authority and SME perspective, we can extrapolate finings for international comparison and offer an in-depth look at how the execution of this policy can be strengthened to deliver maximum benefit to their communities. The implication is to focus attention on how institutions (public or private), by way of better execution, can enhance the economic resilience of their own local ecosystems/places.

This paper aims to consider the impact of the European Union procurement regulations. It assesses the impact of the re‐tendering of services on the terms and conditions of employment and sense of well being, and commitment of employees in the social care sub‐sector of the voluntary sector.

The study employs a qualitative study of three organisations utilising semi‐structured interviews with managers and employees.

The process of re‐tendering is creating intensified competition and the breakdown of co‐operation between voluntary sector organisations. Re‐tendering also has an impact on employee terms and conditions with related problems arising with regard to their morale and commitment.

This remains a relatively small‐scale piece of research and there is also scope to consider how these issues are played out in private, as well as voluntary sector organisations.

The research highlights the potential tensions between creating greater competition and a search for value for money in the tendering and re‐tendering of services on voluntary organisations' raison d'être and the sense of commitment of employees.

There is little research examining the human resource aspects of re‐tendering and this research provides an important step in surfacing a number of emergent issues for how voluntary organisations manage the people dimension of the re‐tendering process.

The purpose of this paper is to report on a field-level examination of the adoption of sustainable procurement in social housing. It explores the role of regulation and procurement consortia in sustainable procurement.

The study employs a case study of the UK social housing sector and uses an online survey (n=116) of UK Housing Associations. Factor analysis identifies three parsimonious dimensions of sustainable procurement. Attitudinal data are analysed to explore the field-level adoption of sustainable procurement and the role of consortia.

The results delineate sustainable procurement activities into three factors; direction setting, supplier-centric assurance and local socially oriented supply. High yet sup-optimal levels of sustainable procurement activity are revealed. Prevailing attitudes identify positive commitments to sustainable procurement at individual, organisational and sector levels. The value of network collaboration is identified. Tenants as critical stakeholders do not prioritise sustainable procurement creating challenge for inclusivity. Regulators are seen to a have low level of sustainable procurement knowledge and procurement consortia a high perceived knowledge.

Results provide insight into the effect of sustainable procurement policy, the role of regulators and network structures and consortia, raising issues around legitimacy, coopetition, stakeholder engagement, performance measurement, and functional/sectoral maturity.

The identification of the potential exclusion of tenants in sustainability debates is particularly significant to deliver social value.

The relative newness of the social housing sector and its quasi-public sector status provides an original contribution to the consortia and sustainable procurement literatures.