Volume 4, Number 3, 2004

Symposium on Challenges in Public Procurement: An International Perspective .......................................................... 311
K. V. Thai, A. Araujo, R. Y. Carter, G. Callender, R. Grimm, K. R. E. Jensen, R. E. Lloyd, C. P. McCue, and J. Telgen

Symposium Introduction .............................................................................................................................................................. 312
K. V. Thai

The World Bank e-Procurement for the Selection of Consultants: Challenges And Lessons Learned ...................... 319
K. Leipold, J. Klemow, F. Holloway, and K. Vaidya

Promoting Economy: Electronic Reverse Auctions under the EC Directives on Public Procurement .......................... 340
O. Soudry

Assessing the Management Costs of Delivering Services under Alternative Institutional Arrangements ................... 375
T. L. Brown and M. Potoski

Ban-on-Negotiations in Tender Procedures: Undermining Best Value For Money? ........................................................ 397
Kai Krüger

Pan-American Health Organization’s Humanitarian Supply Management System: De-Politicization of the Humanitarian Supply Chain by Creating Accountability ................................................................................................................................................. 437
R. M. Tomasini and L.N. Van Wassenhove

The Future of Small Businesses in the U.S. Federal Government Marketplace ............................................................... 450
M. Clark, III and C. Moutray


BOOK REVIEW

Enhancing Procurement Practices: Comprehensive Approach to Acquiring Complex Facilities and Projects .......... 471
R. E. Lloyd

ABSTRACT. The federal government purchased goods and services valued at approximately $100 billion from small businesses in FY 2003, which was up from previous years. Moreover, in FY 2003, the federal government exceeded its small business contracting goal of 23 percent. Despite such achievements, implementation of the acquisition reforms enacted in the 1990s has limited small businesses’ access to the federal procurement market. Federal agencies have, for instance, not met their goals for women, minorities, or veterans, and contract bundling and purchase cards may restrict small business opportunities. Meanwhile, both judicial actions and a reduction in the number of acquisition workers complicate matters. This paper discusses each of these issues and offers five recommendations that, if fully implemented, should ensure a brighter future for small businesses in the federal government marketplace.

ABSTRACT. In this paper we assess the management costs of deliveringservices under alternative institutional arrangements. We develop an analyticframework based on transaction cost and public sector network theories toidentify management costs public managers face in delivering services directly and via contract. Results from a survey of refuse collection managers in Ohioindicate that direct service provision carries higher management costs, thoughwhen combined with vendors’ activities, contracting carries more monitoringcosts. These results suggest two important contributions to knowledge and contract management practice. First, we develop an innovative approach to assessing management costs. Second, we use our framework to determine whether there are differences in management costs under alternative institutional arrangements that managers should take into account as they approach the “make or buy” decision.

ABSTRACT. The Pan American Health Organization (PAHO) has developed a humanitarian supply management system (SUMA) that records, tracks and reports the flow of donations and purchased goods into a disaster area. While a lot of the received goods are in-kind donations, there is a procurement process triggered by the cash funds to meet specific needs. This procurement process also needs to comply with the humanitarian principles, and is therefore susceptible to manipulations from different stakeholders. SUMA has contributed to all the different deployments with the ability to build transparency and accountability in complex operations. These two contributions help to isolate the political factors from the supply chain and protect the humanitarian principles and space.

ABSTRACT. The reverse electronic auction is a new competitive bidding procedure adopted by the recently enacted European Community (EC) directives on public procurement. It is submitted that the electronic reverse auction has the potential to reduce the tension between the European Commission and national policies of procurement, as it can decrease contracting costs, increase transparency and achieve better economic outcomes as a result of increased competition. This paper relies on auction theory in order to support such statements. A comparison between the traditional sealed-bid method and the reverse auction is further provided.

ABSTRACT. Markets for public contracting are in the process of transition. Various public/private partnership arrangements replace conventional purchasing, especially within the local and regional government area. Municipal entities may not be in a position to define their needs up-front because they would not have the overview of what the market may have to offer. So one should ask: Is the traditional ban-on-negotiations in mandatory tender procedures (sealed bidding) - such as it is in EU public procurement law - counter-effective to genuine best value for public money? The article displays significant differences between European Union (EU) law, U.S. law and other regimes such as United Nations Model law, The World Trade Organisation’s Government Procurement Agreement (WTO/GPA), The International Bank for Reconstruction and Development (IBRD), and the NAFTA (North American Free Trade Agreement). New avenues for public/private demand a new agenda and the recent EU 2004 directive scheme attempts to respond to the market challenges. The author accepts that the new directive on public contracting facilitates a more smooth approach than in current EU law with regard to high-tech complicated contract awards, but questions whether the ‘competitive dialogue’ really can afford tailor-made solutions to cope with long-term public/private partnership arrangements of the kind now spreading all over Europe.

ABSTRACT. This paper introduces and examines the implementation of the World Bank’s electronic procurement initiative for the selection of consultants, which is expected to foster consistency of practice worldwide, increase transparency and competition, and minimize processing time and effort. Following the description of functionalities and benefits of the system, this paper discusses the challenges encountered and lessons learned during the aimplementation process in terms of critical success factors (CSF).

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