Volume 12, Number 2, Summer 2012

Public Procurement through Performance-Based Logistics: Conceptual Underpinnings and Empirical Insights ..... 151
F. C. Kleemann, A. Glas and M. Essig

A Model of Trade Restrictiveness Index: Its Application and Implications In Public Procurement ........................... 189
D. Demessie

E-Procurement: Myth 0r Reality? .............................................................................................................................. 221
C. McCue and A. V. Roman

Case Studies of Bid-Rigging and Procurement Reform Assessment in Fuel Oil Supply in Japan and Korea .......... 249
K. Arai

ABSTRACT. In November 1999, the Japanese Fair Trade Commission took legal action against participants in bids for oil delivery work ordered by the Self-Defense Forces. Then, in September 2000, the Korean Fair Trade Commission took legal action against participants in bids for oil delivery work ordered by the Korean Ministry of National Defense. These actions were not related, though there are similarities between the cases, each of which involves oil delivery companies obtaining special procurement privileges through deals with national security authorities. Study of these cases led to speculation as why the industry is conductive to collusion. According to the study three important results were recognized: Several measures in the plan for Japanese and Korean procurement reform were then analyzed. The implementation can clarify issues that are important for eradicating the participants’ incentives for collusion.

ABSTRACT. Public procurement is characterized as a distorted market which grants limited access to foreign suppliers and contractors. However, the different impediments existing within the public procurement policies and their relative significance in restricting effective international competition are not very well known. This paper, through the process of developing a model of Trade Restrictiveness Index, identifies weighs and scales 17 impediments existing within the public procurement policies. The paper also reveals that implicit restriction which emanates mainly from lack of transparency imposes a greater level of restriction in the market. In a final application of the model, comparison of the public procurement policies of selected Common Market for Eastern and Southern African (COMESA) countries, has shown that with a rated index of 1, the procurement policies of Kenya and Uganda are rated as most restrictive while Rwanda’s is found to be least restrictive.

ABSTRACT. Governments across the globe appear to identify and tout technology as a way to transform how they govern. Public procurement is at the forefront of most reform efforts given that it plays a significant role in promoting accountability and transparency. This study relies on survey data of procurement professionals to delineate the current status of eprocurement implementation in United States and Canada. Findings suggest that digitalized public procurement has not yet led to significant transformative changes. Unsuitability of software platforms, organizational resistance, lack of strategic systems’ integration and failure to involve public procurement professionals in the design of e-procurement systems were identified as the primary obstacles of effectively implementing digital procurement. These findings suggest that in order to capitalize on the potentially transformative nature of ICT in procurement, policymakers, system designers, and procurement professionals must take an active role in both the design of the software and its adoption across political, institutional and behavioral domains.

ABSTRACT. Faced with reduced budgets and rising service expectations, public authorities are increasingly cooperating with private businesses. This paper examines an alternative procurement- and service delivery concept, Performance-based Logistics (PBL). It has been introduced by the US and UK armed forces. However, other nations, such as Germany, are still reluctant to follow. This article has two aims: First, to identify the conceptual characteristics of PBL, and second, to analyze potential reasons why although PBL is popular in some nations, others are so reluctant to introduce it. This will be done using a mixed method approach. The concept of PBL will be introduced by deductively developing a conceptual model of PBL using a business model framework. The analysis of PBL application will be performed using an in-depth case study from the German defense sector. This will be framed by a literature review and concluded by managerial recommendations.

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