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The purpose of this paper is to provide evidence of connections between sustainability policy goals included in public procurement tenders and offers and their achievement…
The purpose of this paper is to provide evidence of connections between sustainability policy goals included in public procurement tenders and offers and their achievement through contract award.
Two hypotheses based on extant literature and the inducement–contribution theory were tested by means of a survey of 281 procurement files from 2007 to 2009 relating to eight product categories and four European Union (EU) member states. Data were analyzed using structural equation modeling.
Findings indicate that public procurement was more effective in influencing socially responsible goals than environmental goals. In terms of supplier readiness, vendors achieved greater progress in delivering green than socially responsible operations.
The collection and analysis of data are based on procurement files, which is a new but also a complex procedure. In comparison to survey data, the data from procurement file analysis are less biased.
Public procurement practitioners and sustainability policymakers should consider the use of public procurement as a lever to attain environmental and socially responsible goals.
Evidence has been provided to demonstrate the strategic use of public procurement impacts on environmental and socially responsible goals, thereby benefiting society.
This study contributes in three main ways: first, by adding to existing, limited research on the use of public procurement as a lever of policy goals attainment; second, by examining environmental and socially responsible policy in one study; and third, through providing evidence across EU member states.
Given the complexity of green public procurement, decisions are likely to be driven by bounded rationality. However, we know little about what determines supplier…
Given the complexity of green public procurement, decisions are likely to be driven by bounded rationality. However, we know little about what determines supplier selection criteria in any given situation. This study explores buyer behavior when considering environmental criteria. We first conducted interviews and identified 12 operational procedures used by buyers. We then developed a survey to explore the use of these procedures. Our quantitative analysis suggests that public buyers are motivated by their belief that they can make a difference. This is independent of buyers' experience or gender. However, their occupational position and the nature of a procurement seem to influence how buyers seek information about environmental criteria and which information source(s) they use. The data suggest that four specific decision-making heuristics are associated with the selected operational procedures.
This paper presents the outcome of research related to application of formal rules and standard procedures in EAsʼ procurement of goods and services for foreign aid-funded…
This paper presents the outcome of research related to application of formal rules and standard procedures in EAsʼ procurement of goods and services for foreign aid-funded projects. Executing agencies are entrusted to implement foreign aid-funded projects on behalf of respective governments and they are required to satisfy a combination of rules of their multiple principals, mainly donor organizations and respective government ministries. The theoretical framework of this study is guided by agency theory. The findings indicate that the processing of procurement related information and awarding contracts by the executing agencies in the context of Bangladesh is heavily dependent on the informal working systems or “unwritten ground rules”. These are driven by downward hierarchical verbal and non-verbal instructions. The study has adopted a qualitative method following a grounded theory approach.
One of the major methods to promote small- and medium-sized enterprises (SMEs) in public procurement is to split tenders into lots. The basic assumption is that SMEs have…
One of the major methods to promote small- and medium-sized enterprises (SMEs) in public procurement is to split tenders into lots. The basic assumption is that SMEs have better chances of awarding smaller or more specialized contracts. This paper aims to investigate whether this widely accepted assumption is correct.
This article examines four hypotheses about the factors that influence SME success in public procurement. The empirical analysis uses real data from 380 contract award files and logistic regression to test the hypotheses.
The results show that a higher number of lots in a tender does not significantly increase the success rate of SMEs, and other factors, including the type of public procurement procedure, the number of participating companies and the overall tender volume, significantly influence SME success.
There are several implications for theory and practice, including the need to further strengthen the academic evaluation of public procurement policies, the suggestion to implement SME support instruments in public legislation with the utmost caution in practice and the managerial indication that SME competitiveness is more relevant to their success in public bidding than public support policies.
The findings stand in fundamental contrast to the legal regulations, which postulate that lots are the driving force for SME promotion in public procurement. This is also in contrast to public procurement policies that, for many years, have recommended splitting contracts into smaller lots to become SME-friendly.
The aim of the present study is to investigate and analyze Internet‐related consumer music procurement behavior and its effects on traditional music procurement using a…
The aim of the present study is to investigate and analyze Internet‐related consumer music procurement behavior and its effects on traditional music procurement using a Web questionnaire with a sample of more than 4,000 Internet users (the word “procurement”, as opposed to purchase, is used because some procurement satisfies the consumers’ need for music but they do not pay for it). Four motive factors for the willingness to pay for online music were found and subsequent cluster analysis identified three meaningful and distinct downloader groups who are willing to pay for online music: demanding downloaders; general download approvers; procurement autonomous. Consumer price sensitivity for two different commercial online‐music distribution models was very similar and the majority of users had similar ideas as to how much a commercial download service should cost. Implications for marketing research and practitioners are discussed.
Performance-Based Contracting (PBC) is widely accepted as a useful tool. It is believed that the use of PBC can assist the efficient utilization of the public resources…
Performance-Based Contracting (PBC) is widely accepted as a useful tool. It is believed that the use of PBC can assist the efficient utilization of the public resources. The objective of this research is to assess the extent of PBC application and the obstacles to applying it in the public procurement systems of developing countries. Interviews and factual analysis of procurement guidelines and contracts are used to collect data for this research. The analysis results indicate that the majority of public organizations have not yet used PBC even though it is allowed by the law. This is due partly to lack of clarity in the procurement laws and lack of capacity to use PBC.
This paper will consider the rationale and effectiveness of SMEsupport policies in the award of public procurement (PP) contracts. One group of economic justifications for…
This paper will consider the rationale and effectiveness of SMEsupport policies in the award of public procurement (PP) contracts. One group of economic justifications for SME policies derives from the notion that awarding PP contracts to SMEs (and micro-enterprises) encourages innovation, entrepreneurship and so contributes to job creation, economic growth and can support local and regional developments to the benefit of wider society. The link between SMEs, innovation and economic growth has often been assumed in PP policy-making. While some studies show higher growth rates in small than larger firms, others indicate, to the contrary, that many micro and small enterprises, and particularly informal businesses, are not actively seeking to grow. This paper will assess how effective SME policies may be, and questions the extent to which they are properly evaluated.
Universal Public Purchasing Certification Council (UPPCC) is an independent nonprofit entity formed to govern and administer the Certified Public Purchasing Officers (CPPO) and Certified Professional Public Buyers (CPPB) certification programs. Periodically, UPPCC performs a job analysis study to ensure that the certification exams are aligned with the skills, knowledge, and abilities needed for successful job performance in public procurement. This article provides a brief summary of the 2007 job analysis study.
This paper examines entry barriers to involvement in public procurement of small and medium-sized enterprises and the role of training in dismantling those barriers. We…
This paper examines entry barriers to involvement in public procurement of small and medium-sized enterprises and the role of training in dismantling those barriers. We find that firms' perceptions of barriers are of five main types. Regression analysis shows that a lack of ongoing training is associated with SMEs' perceptions of resource constraints and practical skills that hinder their participation in public procurement. We also observe a positive connection between a positive attitude toward training and SMEs' participation rates in public procurement. As a managerial implication, the value of training should be appraised at the firm level, and organizing training and providing information concerning public procurement could be a recommended policy to improve the SME participation rate in public procurement.
Federal agencies can directly purchase more than 8 million commercial products and services through the General Services Administration’s (GSA) multiple award schedules…
Federal agencies can directly purchase more than 8 million commercial products and services through the General Services Administration’s (GSA) multiple award schedules (MAS) contracts. Over the past 10 years, MAS contract sales have increased dramatically--with sales jumping from $4 billion to $32 billion. In addition to simplifying the procurement process, the MAS program is designed to take advantage of the government’s significant aggregate buying power. While GSA seeks to negotiate best pricing for its MAS contracts by analyzing vendor-provided information--such as discounts given to other customers and recent sales data for the same or similar items--past reports have found that GSA has not always used pricing tools effectively and that management controls for better ensuring fair and reasonable pricing had been reduced. This report discusses GSA’s process for negotiating most favored customer prices for MAS contracts and its efforts to improve the overall quality of negotiations. Contract negotiators at the four MAS acquisition centers that GAO reviewed use a variety of tools for obtaining most favored customer pricing--that is, the prices vendors offer their best customers. However, the GAO analysis of GSA’s review of selected fiscal year 2004 MAS contract files found that nearly 60 percent lacked the documentation needed to establish clearly that the prices were effectively negotiated. Specifically, the contract documentation did not establish that negotiated prices were based on accurate, complete, and current vendor information; adequate price analyses; and reasonable price negotiations. GSA’s efforts to ensure most favored customer pricing have been hindered by the significant decline in the use of pre-award and postaward audits of pre-award pricing information, two independent pricing tools that have helped GSA avoid or recover hundreds of millions of dollars in excessive pricing. In fiscal year 1995, GSA conducted 154 pre-award audits; by 2004 the number of pre-award audits fell to 40. Postaward audits--which resulted in an average annual recovery of $18 million in the early 1990s--were discontinued in 1997 when GSA revised its MAS contract audit policies to increase the use of pre-award audits--an increase that has not materialized. In March 2003, GSA established the Acquisition Quality Measurement and Improvement Program, initiating the use of prenegotiation panels and postaward quality reviews of contracts. However, the effectiveness of these initiatives has been limited due to insufficient oversight. For example, three of the MAS acquisition centers that GAO visited had not reported the results of their 2003 prenegotiation panels--information needed by management to identify problems and make needed improvements. Moreover, the fourth acquisition center--which accounted for about 56 percent of the fiscal year 2004 MAS sales--has yet to hold a panel. While the postaward quality reviews--the second program initiative--have identified deficiencies in contract file documentation, they did not determine the underlying causes of these deficiencies or prescribe actions needed to address them. As a result of these weaknesses, GSA cannot be assured that fair and reasonable prices have been negotiated for its MAS contracts.