Volume 13, Number 4, Winter 2013


BasedonCapabilityandFee-PercentageCriteria......................... 409



Politics-ProcurementDichotomy..................................................... 447


DevelopingaPublicValueHealthcareProcurementFramework                                                                           476



MilitaryWeaponSystemContracts................................................ 516

J. D.Ritschel

ABSTRACT. For decades, cost growth in major military weapon system programs has been problematic. The result is a multitude of studies documenting internally focused causes of Department of Defense (DoD) acquisition cost growth and a spawning of acquisition reforms that have provided little relief to the problem. The missing components of these prior analyses are the larger economic and political factors that contribute to cost growth. This study analyzes cost growth in major DoD development and procurement contracts through a holistic political-economy construct including the effect of the political party of the President and Congress, and the liberal-conservative record of the Armed Services Committees. These political-economy constructs in both development contracts and procurement contracts are found to be more robust.
ABSTRACT. The last two decades have witnessed a tremendous growth in the body of literature addressing the importance and the impact of contracting and public procurement within the context of devolution of government. The austere budgetary and financial outlooks of the future suggest that the significance of the area will only continue to grow. As such, generating explanatory frameworks, within dimensions such as decisionmaking and accountability in public procurement, becomes crucial. Drawing from original research this article suggests one possible frame for understanding administrative decision-making in complex environments.  Based on semi-structured interviews with public procurement specialists, the study identifies two decision-making patterns– broker and purist. It is asserted that the decision-making dynamics exhibited by administrators are contingent on their perceptions regarding environmental instability, in particular the political volatility surrounding their work.
ABSTRACT. This paper explores the potential application of public value management theory to the practice of UK healthcare procurement. By conducting a literature review, key elements of public value theory and practice that can be applied to healthcare procurement are identified together with mechanisms that can be used in procurement to protect public values and enhance the creation of public value. These are formed into a Public Value Healthcare Procurement Framework which represents a fresh normative approach to healthcare procurement by focussing on a broader, societal view of value; by providing a blue print for procurement leaders centred around Moore's vision of “exploring” and “moral” public managers; and by promoting a public service ethos amongst all providers including the private sector.
ABSTRACT. Early involvement of the construction team is increasingly utilized in demanding projects to incorporate versatile expertise in their planning. For public owners this is a challenge since they are obliged to use competitive, transparent team selection based on the ‘most economically advantageous’ criterion which ensures that both price and quality viewpoints are taken into account. In the case of early involvement, the price component naturally does not include the total price, but may consist only of the fee-percentages of competing service providers. This study examines such a selection situation in project alliancing in the European context and seeks to find a way to integrate the fee component in a multi-criteria selection system and determine reasonable fees for different levels of capabilities. The study builds on the performance difference between different capabilities, derived from a survey of practitioners, and determines an indifference curve arithmetically for the planning of a selection method. The influence of the owner’s risk attitude and risk premiums are also considered exploratively based on the pricing methods of the theory of finance.
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