Volume 10, Number 1, Spring 2010

Optimizing the Size of Public-Private Partnership Contracts in the Water Sector: Implications from An Estimated Cost Function of Private Operators ...................................................................................................................................... 1
A. Iimi

Construction Procurement Strategies of National Health Service In the UK: A Critical Review ............... 31
A. D. Ibrahim, A. Price, M. M. A. Khalfan and A. Dainty

Social Cohesion, Groupthink and Ethical Behavior of Public Procurement Officers ................................ 68
J. M. Ntayi, W. Byabashaija, S. Eyaa, M. Ngoma and A. Muliira

The Economics of Procurement Contract Awarding: Problems and Solutions in Theory and Practice ... 93
P. A. Mori and N. Doni

Local Public Procurement: How to Deal with a Creative Bidder? A Case Study from The Netherlands . 121
M. P. v. d. Hoek

BOOK REVIEW

Buying Social Justice: Equality, Government Procurement, and Legal Change ..................................... 136
Y. Qiao

ABSTRACT. The main aim of this paper is to review some of the newest and most promising advances in auction theory with an eye to applications to procurement practice. Here we focus in particular on four topics related to multidimensional auctions: 1) how to define a proper scoring rule when the awarding bodies lack the necessary information regarding its own preferences and suppliers’ technology; 2) how to cope with the information disclosure policy regarding the discretional evaluation of some aspects of each contractual proposal; 3) how to use contractors’ reputations based on their past performance in the awarding process; 4) how to control the risk of collusion and corruption in the awarding phase.

ABSTRACT. In the UK healthcare sector, funding and provision of public care facilities has been primarily the responsibility of government through the National Health Service (NHS). After decades of under-investment and consequent effects on the quality of care, new procurement routes are currently being used to improve the standards of facilities to meet the requirements of modern care services. This paper critically reviews these new procurement routes in terms of concepts and suitable areas of application, and examines how the principal procurement methods have evolved into the forms used for UK healthcare facilities. The paper outlines recommendations for further research in assessing the suitability or otherwise of these new procurement methods, both for construction projects generally and specifically for healthcare facilities.

ABSTRACT. Whereas social cohesion has been widely studied and researched by sociologist and psychologists, its application to public procurement is sparse. This study explores the connection between social cohesion, groupthink, ethical attitudes and ethical behavior of procurement officers. The study is based on a survey of 405 public procurement officers in central government. A cross-sectional survey design was used and a response rate of 58.5% attained. Self report items were used to study all the constructs. All the hypothesized relationships were found to be significant. Social cohesion, groupthink, and ethical attitudes were all significant predictors of ethical behavior, accounting for 56% of the variance. The strength of this prediction suggests the need for concerted policy intervention for dealing with unethical conduct and behavior of the procurement professionals.

ABSTRACT. In public-private partnership (PPP) contracts of water utilities, of particular concern is lack of market competition. This paper focuses on the size of contracts. If governments design a large-scale transaction, economies of scale in service operation can be expected, but competition in auctions may be compromised. For small contracts many firms will apply, but at the cost of scale diseconomies in operation. The estimated cost function of PPP water utilities indicates that economies of scale exist but diminish quickly as production increases. There is no rationale for more than 300 million cubic meters of water service concessions under a single package, taking a risk of little competition. Conversely, less than 50 million cubic meters of concessions are too small; the bundling approach is required.

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