Volume 14, Number 4, Winter 2014

Symposium on International Public Procurement: Innovation and Knowledge Sharing .......................................... 445
P. Davis and K. V. Thai

Symposium Introduction .......................................................................................................................................... 446
P. Davis and K. V. Thai

Seven Years of U.S. Defense Acquisition Research: Analysis of Proposals and Projects ..................................... 451
K. L. Shaffer and K. F. Snider

Public Procurement of Innovation Policy: Competition Regulation, Market Structure and Dominant Design ......... 473
R. Wan

Exploring Legitimacy in Major Public Procurement Projects ................................................................................... 495
C. Russell and J. Meehan

Public Procurement Mechanisms for Public-Private Partnerships .......................................................................... 538
D. Vinogradov, E. Shadrina, and L. Kokareva

Increased Cooperation through Immediate Post Contractual Negotiation .............................................................. 567
S. J. Meijers, A. G. Dorée and H. Boes

ABSTRACT. Traditional contracting often leads to claims during construction by contractors, increasing transaction costs for both parties in the form of policing and enforcement costs. Partnering is widely advocated as a governance form to more cooperative relationships between client and contractor. However, partnering requires a significant investment in elaborating a specific procurement approach, and is regarded as inappropriate for small, one-off, less complex projects. Dutch municipal governments are searching for alternative solutions to increase cooperation with contractors and reduce transaction costs by applying immediate post contractual negotiations in traditionally procured projects. We studied four such municipal projects which have shown that immediate post contractual negotiations achieve the effects of partnering despite the initial traditional procurement procedures. These negotiations seem to reduce the transaction costs of traditional procurement making them particularly applicable in smaller projects where high set up costs would not be justifiable due to their limited size, complexity, or cost.

ABSTRACT. Recently, industry policy researchers have been more interested in public procurement, as a “demand side” policy approach. The mainstream exclusively targeted public procurement demand to push innovation and furthermore leads to the “first mover strategy.” This paper points out that procurement decisions are likely to have a broader innovation impacts, and mostly via their influence on intermediate outcomes such as the structure of industrial competition. In this paper, the author explores the specific features of public procurement as a competition shaping instrument, and conducts an empirical study to measure the correlations among the competition regulation of procurement contracts awarding, industry competition structure and dominant design cultivation efficiency.

ABSTRACT. Why do some countries (often developing and emerging economies) adopt special laws on PPP, whilst in others PPPs are governed by the legislation on public procurement and related bylaws? This paper explains the above global discrepancies from an institutional perspective. In a contract-theoretical framework we demonstrate how PPPs can enable projects that are not feasible through standard public procurement arrangements. Incentives for private partners are created through extra benefits (often non-contractible) from their collaboration with the government (e.g. risk reduction, reputational gains, access to additional resources, lower bureaucratic burden, etc.). In a well-developed institutional environment these benefits are implicitly guaranteed, suggesting no need in a specialized PPP-enabling legislation. Otherwise, a PPP law should establish an institutional architecture to provide the above benefits.

ABSTRACT. In 2006, the U.S. Defense Acquisition Executive approved a program at the Naval Postgraduate School to solicit, evaluate, and fund proposals for innovative and scholarly acquisition research. This paper presents an exploratory analysis of proposals from 2007 to the present. It seeks to provide an understanding of the types and sources of research proposals, and the extent to which the program’s goal has been achieved. Cluster and trend analyses classify and examine the data according to several key aspects, such as: topical area (e.g., contracting, logistics); research type (e.g., exploratory, hypothesis testing); research design (e.g., case study, experiment); and type of analysis (e.g., comparative, statistical). The results show positive trends, but the number of institutions with interest in defense acquisition remains low, suggesting that it remains a limited niche research topic.

ABSTRACT. In the UK, major IT public procurement projects regularly fail at significant cost to the taxpayer. The prevalence of these failures presents scholars with a challenge; to both understand their genesis and to facilitate learning and prevention. Functional approaches have revealed numerous determinants of failure ranging from procurement specifications to risk escalation, but true and definitive causes remain elusive. However, since failure is not itself an absolute truth, but rather a concept which is reached when support is withdrawn, the survival of a project depends on there being sufficient belief in its legitimacy. We use critical hermeneutic methods and the conceptual lens of legitimacy to reveal powerful legitimating influences that enable and constrain action, but which are not analysed in the retrospective government inquiries that determine lessons learned.

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