Volume 8, Number 3, 2008

Financing Infrastructure: Fixed Price vs. Price Index Contracts ........................................... 289
R. J. Eger III and H. Guo

SYMPOSIUM

Symposium on International Public Procurement, Part I …................................................... 302
J. Telgen and K. V. Thai

Symposium Introduction ....................................................................................................... 303
J. Telgen and K. V. Thai

Public Procurement Policy: Implications for Theory and Practice ..........................................310
K. F. Snider and R. G. Rendon

An Asymmetric Learning in Complex Public-Private Projects ............................................... 334
J. Zheng and N. Caldwell

A Simple Model of Framework Agreements: Competition and Efficiency ............................. 356
G. Luigi Albano and M. Sparro

Procurement Planning and Accountability of Local Government Procurement Systems in Developing Countries: Evidence from Uganda ......................................................................................................................... 379
B. C. Basheka

An Economic Approach to Public Procurement .................................................................... 407
T. H. Chen

ABSTRACT. The role of public procurement as an instrument to stimulate innovation has been increasingly emphasized by European policymakers. This perspective raises demand for the understanding of public procurement as an activity taking place in a variety of different procurement contexts and as an act of innovation. Accordingly, this paper proposes a taxonomy of public procurement and innovation, combining interactive learning and evolutionary perspectives on innovation processes to account for the broad range of different ‘interaction environments’ or ‘resource interfaces’ in which government or public sector organizations may act as lead users of innovations. On this basis, the taxonomy draws practical policy implications for the design of programmes and initiatives for the public procurement of innovations.

ABSTRACT. This paper investigates how symmetrical learning activity is, between the public client and the private contractor in the contracting and operation of complex, long-term infrastructure projects. Drawing on empirical material from two United Kingdom (UK) private finance initiative (PFI) cases, the paper analyses differences in the absorptive capacity and learning capability between parties. It suggests the private contractor appears to be better equipped to acquire, embed and renew their learning. skewed (imbalanced) relationship, where the contractor gains more learning capabilities than the client. The paper concludes with implications for management practice and suggestions for future research directions.

ABSTRACT. Award systems play the central role in public procurement, since they determine what is considered by the contracting authority as ‘the most practice have serious shortcomings, which are caused by the use of relative scores. In this article, the consequences of those shortcomings are demonstrated, using examples from real procurement procedures and case law. The examples are analyzed with methods from econometrics, social choice theory and game theory.

ABSTRACT. This paper proposes a conceptual framework for the study of public procurement policy. It reviews policy-related writings by public procurement scholars and assesses these works from the perspective of their contributions to generalized understandings of public procurement policy. Selected tools and concepts from the policy sciences are applied to propose a model to illuminate unique aspects of public procurement policy in ways that will facilitate its study. The paper concludes by discussing some recent actions, trends, and issues from the U.S defense procurement sector in terms of the framework. Models such as the one proposed in this paper will contribute to enhanced approaches to procurement policy analysis by scholars, as well as to informed and sophisticated policy implementation by practitioners.

ABSTRACT. The contribution of planning in facilitating an efficient and effective performance of public sector organizations is generally undisputed in both developed and developing countries. Its contribution can be at both central and local government levels of public sector management. This article examines the relationship between procurement planning and accountability of local government procurement systems in Uganda. The findings arose from a study that was conducted among 99 local government stakeholders selected from 11 Districts of Uganda, using a correlation research design. The data was analyzed using principal component factor analysis that aimed at identifying the critical components of procurement planning and accountable local governments systems in Uganda. Consequently, correlation analysis to establish the direction and magnitude to which the two variables were related was conducted and results are presented. The findings revealed a significant positive relationship between procurement planning and accountable local government procurement systems in Uganda. These results are compared to international research findings, and suggestions are offered for management, policy making, future research and efficient accountable local government operations.

ABSTRACT. This paper looks at a common type of price adjustment, price indexing, which provides contractors with compensation for increases in price volatile commodities. We address the effect of Firm Fixed Price (FFP) versus indexed price systems for a price volatile commodity. The impact of these two types of bid systems is analyzed through a combined qualitative and quantitative analysis. Results indicate that an indexed price system does not provide a reduction in costs compared to a Firm Fixed Price system. This study is important to state financial managers as they address the efficient use of resources invested in state infrastructure.

ABSTRACT. Directive 2004/18/EC provides a uniform and harmonized legal framework for conducting public procurement in Europe. In this paper we deal with one of the new institutes introduced by the Directive, namely the framework agreements (FAs). We set up a two-stage model in which a central purchasing body (CPB) first concludes an incomplete FA with at least three firms. Competition is then reopened by one among several contracting authorities (CAs). We find that admitting a higher number of firms is efficiency enhancing, since more final users are likely be served. Nevertheless, a higher number of admitted firms induce less aggressive competition at the first stage, leading to higher prices (lower savings). We provide numerical solutions to the trade-off between savings and efficiency.

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