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To achieve social economic objectives, governments usually institute discriminatory practices in their country's public procurement framework. Discriminatory procurement is the practice by governments to favour their own domestic suppliers over foreign firms for advertised contracts. Favouring domestic firms over large, possibly cheaper foreign firms, it is argued will create a stimulus to the economy through injections. Injections to the economy will stimulate the expansion of infant industries, foster growth of underdeveloped regions, create employment and improve the standard of living. On the other hand, increased openness of public procurement markets to allow in foreign firms, has been justified as a practice that enhances competitiveness, reduces cost of procurement by government leading to efficient public resources utilisation. Countries are then faced with a problem of making a decision of opening the procurement markets given the rather contradicting policy outcomes. Our argument is that for a government to make a decision of either buying from a foreign firm or domestic firm, it analyses the impact on the economy of either options. Buying from a cheaper foreign source will generate savings that can be reinvested back into the economy depending on a government's spending priorities. The impact of these saving is compared to the impact of awarding a contract to a domestic firm. Using the accounting multipliers computed through the Social Accounting Matrix (SAM), we calculate the impact of both options. This leads to the development of a Procurement Policy Option Model (PPOM) used as a decision tool to determine whether a contract in a particular sector should be awarded to a foreign or a domestic firm. The PPOM is extended for various discriminatory public procurement schemes and a model for each of the schemes is developed. The models and rules developed in this research provide the necessary guidance on how countries can differentiate between the different sectors so as to set effective thresholds necessary to achieve social economic objectives without compromising on the primary objective of value for money.
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In: Lex localis: journal of local self-government, Band 20, Heft 1, S. 101-127
The paper analyses a situation where the efficient public procurement legislative framework formally exists, but in practice, the process does not work as planned. The data were gathered from one hundred contracting authorities in the Republic of Serbia, based on a nationwide survey conducted on public procurement officers (PPOs) and end-users (ENUs) in all contracting authorities. We propose a model for measuring organisational discrepancies and classifying public procurement processes (PPP) into one of four organisational patterns, based on organisational decision-making authority and focused on goals and principles. The Mann-Whitney U (MWU) test was used to test the independent responses from two hundred PPOs and ENUs on the items – who works, who is accountable, and who has benefits, for seven key public procurement activities. The statistical analysis shows that the public procurement process in Serbia can be classified as a process with centralised organisational decision-making authority, focused on form, with demotivated public procurement officers. The efforts for further improvement of the legislation are not expected to reach their full potential until solving organisational structure, reward system, environment, and culture issues.
In: Cornerstones of public procurement
"According to the United States Census Bureau, American state and local governments spend roughly $3.5 trillion dollars annually fulfilling the community and governmental needs of the public procurement function. Designed to provide a strategic overview of the policy, legislation, and program oversight of public procurement, Legal Aspects of Public Procurement, Third Edition provides a glimpse into the relationships between the legal, ethical, and professional standards of public procurement, outlining not only the interconnections of federal, state, and local law but also best practice under comprehensive judicial standards. The book addresses the ever-changing legal structures that work in conjunction and define the public procurement profession, providing recommended guidance for how practitioners can engage in the function while staying ethically aligned. Instead of trying to address every issue at the heart of public procurement, however, the book seeks to establish the history and spirit of the law, outlining how practitioners can engage proactively and willingly to not only perform their function but to also become advocates for procurement law modernization. While the basic structure of this third edition remains the same, new chapters have been added to cover the legal aspects of competitive sealed proposals and contract administration. In addition, a chapter on procurement of information technology has been revised and updated to better relate to an increasingly digital world. Promoting a start-to-finish guidance of the procurement process, Legal Aspects of Public Procurement explores the relationships between solicitation, proposals, contract administration, and the cutting-edge aspects of technology procurements, providing a theoretical and case-study driven foundation for novice and veteran practitioners alike"--
In: Ruch prawniczy, ekonomiczny i socjologiczny: organ Uniwersytetu im. Adama Mickiewicza i Uniwersytetu Ekonomicznego w Poznaniu, Band 85, Heft 1
ISSN: 2543-9170
In: Pacific economic review, Band 19, Heft 5, S. 577-591
ISSN: 1468-0106
AbstractThe paper presents a model of public procurement in which the contracting officer is corrupt and extracts bribes from the bidding firms. The firms submit multidimensional bids, which consist of the quality and the price of the project that they propose to realize. The firms differ in their costs of realizing the project at a given quality, and these costs are private information. The contracting official, in exchange for a bribe, abuses the power of his or her public office by distorting the quality ranking of the bids and by giving the favoured firm an opportunity to readjust its bid to undercut its rivals. Our analysis suggests that when the firms serve only the internal market, the public project is realized at low quality and inflated prices. However, when the firms are also allowed to sell the product they develop for the internal market in a foreign market, the auction is ex post efficient.
Public procurement has been evolving from an economic instrument into a mixed one with the inclusion of horizontal policies (both environmental and social ones). The latest Directives regarding public procurement have turned some of the previous "suggested" instruments into binding law, namely the sustainability principle, mandatory procedure dematerialization, ecolabels, life-cycle costing as a factor within the most economically advantageous tender criterion, social protection of persons with disabilities, specific procedure rules concerning certain social contracts, and innovation as an instrument to achieve sustainability. This legal instrument has been recognised as a strong legal mechanism to achieve the 12th SGD goal for promoting sustainable public procurement practices, in line with national policies and priorities (target 12.7). This is why public procurement actors must consider EU determinations such as The New Green Deal, which intends to make EU economy sustainable: "public authorities, including the EU institutions, should lead by example and ensure that their procurement is green"(European Commission, 2019a, §2.1.3). Since public procurement appears to be an interesting instrument for transitioning from a linear economy to a circular (sustainable) one, the EU has also published the Circular Economy Action Plan, the latest dating from March 2020 (European Commission, 2020a) and including a "sustainable products policy" to help public procurers design procurement and economic operators adapt their business models thereto. Both documents focus on "reducing and reusing materials before recycling", particularly in resource-intensive sectors such as textiles, construction, electronics, and plastics. While many Member States have been implementing green public procurement (hereinafter: GPP) in several economic fields, studies have shown that procedures still lack common methodologies, among other difficulties regarding the Life Cycle Costing (hereinafter: LCC) factor implementation. In this paper, we will therefore go through several of these national legal solutions and practices to understand how far GPP has been implemented and which methodologies are being applied (GPP Good Practice), dwelling particularly on the latest Portuguese guides concerning GPP, and analyse how far the present implementation meets the requirements of circular economy (Portuguese National Strategy of Green Public Buy 2020: hereinafter: ENCPE 2020a). This is the first step towards building guidelines for both public procurers and economic operators: as regards the first, in order to help them design adequate sustainable public procurement procedures; as for the latter, to help them adapt their business models accordingly. Sustainable development within public procurement can only be achieved that way. ; info:eu-repo/semantics/publishedVersion
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One of the best examples, in evolution of the public procurement, from post-soviet countries are reforms carried out in Georgia, which brought them close to international standards of procurement. In Georgia, public procurement legislation started functioning short after gaining independence. The reform has passed several stages and came in the form as it is today. It should also be noted, that countries with economy in transition, including Georgia, implemented all the reforms in public procurement based on recommendations and support of World Bank, the United Nations and other international organizations. The aim of first adopted law was regulation of the procurement process of budget-organizations, transparency and creation of competitive environment for private companies to access state funds legally. The priorities were identified quite clearly in the wording of the law, but operation/function of this law could not be reached on its level, because of some objective and subjective reasons. The high level of corruption in all levels of governance can be considered as a main obstacle reason and of course, it is natural, that it had direct impact on the procurement process, as well as on transparency and rational use of state funds. These circumstances were the reasons that reforms in this sphere continued, to improve procurement process, in particular, the first wave of reforms began after several years. Public procurement agency carried out reform with World Bank with main purpose of smartening the procurement legislation and its harmonization with international treaties and agreements. Also with the support of World Bank various activities were carried out to raise awareness of participants involved in procurement system. Further major changes in the legislation were filed bit later, which was also directed towards the improvement and smarten of the procurement process. The third wave of the reform more or less guaranteed the transparency of the procurement process, which later became the basis for the ...
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In: The public manager: the new bureaucrat, Band 44, Heft 2, S. 9
ISSN: 1061-7639
In: Bovis, C. (ed.) Research Handbook on European Public Procurement, Forthcoming
SSRN
European Union law has decisively influenced the development and recent evolution of national legislation on environment and on public procurement. One of the most important objetives of European Directives on public procurement have been to introduce environmental protection. But the principles of objectivity, transparency, publicity and non discrimination must be respect in all cases. These principles constitute at present the foundation of all public rules on procurement and are characterized by their transversality as they cover and are manifest in all stages of the contract, preparation and performance.
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In: OECD Integrity Review of Brazil; OECD Public Governance Reviews, S. 291-355
In: Private Sector Development in the Middle East and North Africa; Supporting Investment Policy and Governance Reforms in Iraq, S. 221-243
In: International Economic Review, Band 59, Heft 2, S. 391-419
SSRN