Volume 15, Number 3, Fall 2015

Price-Quality Ratios in Value-for-Money Awards ................................................    275
P. Kiiver and J. Kodym
Do Federal Davis-Bacon and Disadvantaged Business
Enterprise Regulations Affect Aggressive Bidding? Evidence
from Highway Resurfacing Procurement Auctions ...........................................    291
K. C. Duncan
E-Procurement as the ICT Innovation in the Public Services Management:
Case of Slovakia ...............................................................................................    317
M. M. Svidronova and T. Mikus
Stability Properties in Department of Defense Contracts:
Answering the Controversy ...............................................................................   341
J. L. Petter, J. D. Ritschel and E. D. White
Measuring Efficiency in International Public Procurement .............................   365
A. Kumar, A. Nair and J. Piecha

Procurement efficiency as an element of public performance management can contribute to achieving Value for Money by reducing administrative overhead costs and directing resources to support more complex procurement processes. This paper highlights empirical techniques to understand determinants of efficiency in the procurement cycle focusing on elapsed time taken and drawing on a unique dataset on the procurement process within the World Bank. The study finds that different methods of bidding, whether international or domestic, and contract attributes partially explain differences in the duration of procurement processes.

Previous empirical studies examine the effect of asymmetries across bidders on auction outcomes. This paper tests for asymmetries in behavior when bidders are confronted with different regulatory environments. Data from federal and state highway resurfacing projects in Colorado are used to determine if bids are more aggressive when contractors switch from federal projects, with Davis-Bacon prevailing wage and Disadvantaged Business Enterprise regulations, to less-regulated state projects. Results from fixed effects estimates of winning bids indicate that the level of aggressive bidding is not altered with a change in regulations, at least not with respect to the policies and types of projects examined here.

Delineating where stability occurs in a contract provides the window of opportunity for procurement officials to positively affect cost and schedule outcomes. While the concept of a Cost Performance Index (CPI) “stability rule” has been routinely cited by Earned Value Management (EVM) authors since the early 1990’s, more recent research questions the veracity of this stability rule. This paper resolves the controversy by demonstrating that the definition of stability matters. We find a morphing of the stability definition over time, with three separate definitions permeating the literature. Next, an analysis of Department of Defense contracts for both cost and schedule stability properties finds that the veracity of the stability rule is intricately tied to the definition used.

This article presents a simple and objective formula to determine a tender’s price-quality ratio, for the purpose of value-for-money awards, which is literally quality divided by price (Q/P). Most formulas used in public procurement today first translate prices into points, in a process which has several flaws, and in the end they do not produce any actual ratios, a fact which makes them less objective. To adjust the proposed Q/P formula to the relative weight of the price criterion from the buyer’s point of view, all tenders start out with a fixed quality score to compress or expand quality differences between them. Tenders then compete for the remaining range of quality points up to the maximum, and in the end have their quality score divided by the price that they offer.

Information and communications technology (ICT) has enabled the creation of tools to organize, transmit, store and act on information in digital form in new ways (Atkinson - McKay, 2007). Combined with the reforms of government and public administration in the spirit of New Public Management, many innovations are driven by ICT in the public sector. In this paper we focus on several ICT driven innovations from the perspective of e-procurement in the conditions in Slovakia. E-procurement carries out a number of stages of the procurement process, including search, sourcing, negotiation, ordering, receipt and post-purchase review. Thus it contributes to a more transparent and competitive environment in which government has to operate. We confront these theoretical presumptions in the analysis of selected cases of e-procurement use in Slovakia.

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