Volume 6, Number 3, 2006

Advancing Public Procurement: Practices, Innovation and Knowledge Sharing, Special Issue, Part I …..189
G. Piga and K, V. Thai, Editors

Special Issue Introduction ……………………………………................................................……………….. 190
G. Piga and K. V. Thai

Government Procurement as a Policy Tool in South Africa ……............................................................… 193
P. Bolton

Examining Discriminatory Procurement Practices in Developing Countries ……………………..........…… 218
F. Ssennoga

Interweaving Planning Procedures for Environmental Impact Assessment for High Level Infrastructure with Public Procurement Procedures …………………………………………….................................................................................... 250
M. van Valkenburg and M.C.J. Nagelkerke

Procurement Leadership: From Means to Ends ……………………............................................................ 274
K. F. Snider

USEFUL REPRINTS

Contract Management: Opportunities to Improve Pricing of GSA Multiple Award Schedules Contracts … 296
U. S. Government Accountability Office

BOOK REVIEW

The Legal Aspects of Public Purchasing ..................................................................................................... 321
F. Bluestein

ABSTRACT. Federal agencies can directly purchase more than 8 million commercial products and services through the General Services Administration's (GSA) multiple award schedules (MAS) contracts. Over the past 10 years, MAS contract sales have increased dramatically--with sales jumping from $4 billion to $32 billion. In addition to simplifying the procurement process, the MAS program is designed to take advantage of the government's significant aggregate buying power. While GSA seeks to negotiate best pricing for its MAS contracts by analyzing vendor-provided information--such as discounts given to other customers and recent sales data for the same or similar items--past reports have found that GSA has not always used pricing tools effectively and that management controls for better ensuring fair and reasonable pricing had been reduced. This report discusses GSA's process for negotiating most favored customer prices for MAS contracts and its efforts to improve the overall quality of negotiations.
Contract negotiators at the four MAS acquisition centers that GAO reviewed use a variety of tools for obtaining most favored customer pricing--that is, the prices vendors offer their best customers. However, the GAO analysis of GSA's review of selected fiscal year 2004 MAS contract files found that nearly 60 percent lacked the documentation needed to establish clearly that the prices were effectively negotiated. Specifically, the contract documentation did not establish that negotiated prices were based on accurate, complete, and current vendor information; adequate price

ABSTRACT. Developing countries face a problem of making a decision of opening up public procurement markets to all suppliers irrespective of their country of origin. The perceived benefit of opening up procurement markets (non-discriminatory practices) is that it enhances competitiveness, leading to efficient public resources utilisation. Governments discriminating against foreign firms in favour of local suppliers are motivated by the desire to achieve benefits such as, stimulating infant industries, fostering underdeveloped regions and creating employment. This paper examines both arguments and makes recommendations as to how developing countries could open up procurement markets without losing their social and economic objectives.

ABSTRACT. Procurement is often perceived as a tactical rather than a strategic function. Such perceptions result from the way procurement is usually defined as beginning after a need has been identified. Procurement thus focuses on tactical decisions involving means rather than on strategic decisions involving ends. For procurement to become strategic, procurement professionals must be recognized as having legitimate leadership roles in determining organizational ends. The paper presents two conceptual frameworks to move procurement in this direction. The first—pragmatism—resolves the dichotomy between ends and means. The second—a conservator model of agency leadership—highlights the importance of promoting and maintaining public procurement’s institutional integrity. Together, these may equip procurement professionals to adopt leadership roles in strategic organizational decision making.

ABSTRACT. Prior to 1994, the government procurement system in South Africa favoured large and established businesses and it was very difficult for newly established business to enter the procurement system. In 1994, however, government procurement was granted constitutional status, and was recognised as a means of addressing past discriminatory policies and practices. This paper critically analyses the way in which provision has been made in legislation for the use of procurement as a policy tool. It is argued that the use of procurement as a policy tool in South Africa is justified. On the whole, the primary legislation dealing with the use of procurement as a policy tool offers an adequate effect to the constitutionally prescribed use of procurement as a policy tool.

ABSTRACT. In the traditional setting of a tender procedure on infrastructure in the Netherlands, the procedure starts after the public decision-making procedure has been completed. In recent years, however, the Department of Transport and Water Management has considered advancing the start of the tender procedure in relation to the start of the planning procedure by interweaving both procedures. The possibilities and added values of this market approach have been researched in this paper. Added value has been found in the area of utilisation of knowledge, innovation and creativity of the market, thus gaining time and obtaining a more business-like character of the planning procedure. Solutions are proposed for impediments concerning disclosure versus confidentiality, adapting tender conditions and award criteria, (re)using market party ideas and procedure period.

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