Volume 7, Number 1, 2007

Advancing Public Procurement: Practices, Innovation and Knowledge Sharing, Special Issue, Part II ……………………. 1
G. Piga and K.. V. Thai, Editors

Public Procurement in Southeast Asia: Challenge and Reform …....................................................................................... 3
D. S. Jones

Hybrid Organisations in the Provision of Local Public Services …....................................................................................... 34
G. Fornengo and E. Ottoz

Procurement Issues in Performance-Based Contracts: the World Bank Experience with Output-Based Aid Subsidies ….. 62
L. Tineo

Emergency Contracting in the US Federal Government …………....................................................................................… 84
D. Drabkin and K. V. Thai

USEFUL REPRINTS

Hurricane Katrina: Improving Federal Contracting Practices in Disaster Recovery Operations …………………………….. 105
U. S. Government Accountability Office

BOOK REVIEW

Beyond the Bid: An Evaluation of State and Local Government Procurement Practices …………………………………… 117
H. A. Frank

ABSTRACT. Emergency contracting has risen to the fore in both interest and importance in the US since September 11, 2001 (9/11). Most recently, the US government’s response to Hurricanes Katrina and Rita piqued the interest of both the Executive and Legislative branches of the US government and their respective oversight bodies. This paper briefly reviews the literature of emergency contracting with special focus on the statutory and regulatory framework for emergency contracting, identifies some contracting solutions established by the US government to deal more effectively with emergency contracting, and pinpoints some problems faced by emergency contracting agencies and anomalies of their emergency contracting practices.

ABSTRACT. The aim of this work is to investigate the risk of anti competitive behaviour implied by temporary groups of service providers. The point bears policy implications as local authorities, following European Union directives, have stressed the role of such alliances in the public procurement of services. We first summarize the fragmented literature on temporary horizontal alliances in public works and services. We then deal with a case study on local public transport in order to evaluate the performance of temporary groups of service providers. The coopetitive perspective is finally discussed as an explanation stressing that, within firms’ groups, both processes of value creation and value sharing take place.

ABSTRACT. This paper focuses on the World Bank’s emerging experience with a promising application of performance-based contracts: Output-Based Aid (OBA) subsidies. OBA is the provision of subsidies for the delivery of and access to social or infrastructure services. Under OBA, subsidy payments are tied to measurable performing outputs, leaving the specific methods of achieving these outputs to the service provider’s discretion. While creating better risk allocation, more value for users and contracting agencies, and fewer opportunities for corruption than traditional methods, OBA schemes raise new procurement issues that need to be reconciled in order to achieve optimal results. An issue this paper explores is the tension between the need that contracts be “expenditure-based” with the “performance-based” nature of OBA subsidies.

ABSTRACT. Despite the economic transformation that the various countries in Southeast Asia have undergone, serious weaknesses have persisted in the area of public procurement. These include fragmented procurement procedures; the lack of professional procurement expertise; the absence of open, competitive tendering, especially for foreign suppliers; widespread corruption; and the lack of transparency. In recent years, limited progress has been made in reforming public procurement but all too often the reforms have been inadequate and have not had the desired impact so that shortcomings still persist. In light of these failings, the paper will highlight the twin challenges facing most of the states of the region: viz. the need to reinforce the recent procurement reforms and to translate them into actual practices.

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