Procurement Approach Research Articles

Assessment of Primary Control Reserve Requirement from Generator Considering a Battery Energy Storage System

In Korean power system, 376 MW of battery energy storage system (BESS) functions as primary control reserve. The current total requirement of primary control reserve is 750 MW, which is procured by 376 MW of BESS and 374 MW of conventional generators. The BESS installed in the Korean power system can supply its energy for 10 min after loss of generators. If all the energy of the BESS is supplied during the system frequency restoration, this can cause a shortage in primary control reserve. Therefore, a new approach for reserve procurement is required to cope with the shortage in primary control reserve in case the second contingency might happen. Pumped storage hydro generators are good candidates for the additional reserve sources. In this paper, we propose a methodology for procuring additional primary control reserve considering their availability varying in real time and droop characteristics. In the case study, the effect of the proposed methodology is verified through a dynamic simulation.

Moderating claims and disputes through collaborative procurement

Purpose Following the global financial crisis in 2008, the construction sector in UAE has been facing emergent criticisms for growing adversarial culture and rising prevalent claims and disputes between stakeholders. The complex, large size and fast track nature of construction projects in UAE, make project management very challenging under the commonly used traditional procurement routes. This paper aims to examine whether implementing collaborative procurement approaches can facilitate resolving the escalating number of claims and disputes in the UAE construction industry. Design/methodology/approach Considering the nature of the study, a quantitative method was selected to realize the research objectives. The questionnaire was uploaded using an online survey facility and distributed through e-mails and professional networks. The questionnaire was piloted with experts to assess whether the questions are unambiguous, easy to respond and intelligible. The feedback received was mostly positive with few comments and recommendations. The pilot responses were incorporated and the questionnaire was modified before the final sending out. The questionnaire survey consisted of six main sections to fulfill the research objectives. Findings Around three-quarters of the experts believe that the relationship is adversarial, with a lack of trust, win-lose attitude, with dismissive and opportunistic behavior. The survey reveals that the top causes of claims and disputes comprise the following: variations because clients initiated change requests; contractors selection on low bid only rather than including quality and performance considerations; and unfair risk allocation where majority of risks are transferred to contractors. The findings also identify eight collaborative practices, which have crucial positive impacts such as early identification of problems, better communication and enhanced trust and teamwork. Originality/value This research contributes to the enhancement of the management of claims and disputes for construction projects, which encompasses the following: the key characteristics of collaborative arrangements to improve the adversarial construction culture comprise: mutual respect, openness, fairness and non-opportunistic behaviors; the foremost roles of collaborative procurement in reducing claims and disputes embrace: early identification and resolution of problems, enhanced trust and teamwork spirit, improved relationships and better quality communication; the major practical barriers of implementing collaborative approaches incorporate: lack of awareness of their benefits, primitive legal framework of partnering arrangements and lack of transparency in procurement processes.

From subjects to authors – reconnecting community organisations to their core practice

ABSTRACTThe widely observed erosion of the policy capacity of governments and their public services is mirrored by decay in the practice and program capacity of community organisations. This capacity once depended on the practical expertise of a values-driven workforce employed in organisations focused on a social purpose. Governments relied upon this core competency to inform their approach to investment, program design and the delivery of community services, but this has changed. Social purpose in community service organisations have been frustrated by a preoccupation with funding models, procurement approaches and contract details at the expense of the delivery of outcomes. It has resulted in community organisations becoming subjects of service delivery rather than authors of it. The paper frames these dilemmas and provides a theoretical framework for community organisations to reposition from subjects to authors in the system. The paper takes the form of a reflective assessment from a practice perspective.

Innovation Procurement in Health Systems: Exploring Practice and Lessons Learned.

As rising healthcare costs continue to challenge the sustainability of global health systems, there has been a strategic shift toward a focus on value, which considers the outcomes and value of healthcare delivery relative to the costs of care delivery. A unique feature of this focus on value has influenced a shift in procurement whereby health organizations are advancing the procurement of innovative solutions to achieve defined outcomes that overcome challenges such as the quality, safety and cost of care delivery. In this paper, we report on the implementation of three innovation procurement models in four Ontario healthcare organizations. These case studies provide evidence of the value and impact of innovation procurement approaches emerging from the four healthcare organizations. Three models of innovation procurement are described in the four cases, along with qualitative analysis of experiences and outcomes for both the organizations and the participating vendors. Evidence of the value and impact of procuring innovative solutions to address health organization challenges offers insights and new approaches to leveraging public procurement methodologies to achieve value and impact for health systems.

Dispute Resolution and Litigation in PPP Road Projects: Evidence from Select Cases

AbstractPublic–private partnership (PPP) projects came to prominence with the launch of the National Highway Development Project in India in 1998. Since then, the PPP procurement approach to servic...

A sustainable procurement approach for selection of construction consultants in property and facilities management

Purpose Outsourcing architectural and engineering services is a trend for public-sector construction projects. This study aims to examine what tender selection criteria should be considered when assessing the performance outcomes of consultants in relation to sustainable design, construction and management of buildings within the context of property and facilities management of existing building portfolios. Design/methodology/approach Combined qualitative-quantitative methods are adopted to examine the causal relationship between sustainable performance outcomes and influencing factors, using primary data collected from the estate offices of the UK universities, which form a unique public sector. The performance factors identified form the basis of selection criteria. Findings The qualitative multiple-case interviews identify economic, environmental, social and functional sustainability measures as the attributes of performance outcome. The quantitative hierarchical regression analysis generalises that sustainable performance outcomes can be significantly influenced by task and contextual performance factors. Research limitations/implications The scope of the study is limited to university estates. Further research should be conducted on other property and facilities management and construction-related organisations so that the sustainable procurement approach developed by this research can become more robust and applicable to the wider public sector. Practical implications At the tender stage, estate managers should adopt a sustainable procurement approach for selection of construction consultants: focussing on the significant task performance (project staff and execution approach) and contextual performance (collaborative consultant frameworks) influencing factors to optimise the project sustainability outcomes in relation to economic, environmental, social and functional values. Originality/value The sustainable procurement approach developed by this research benefits property and facilities management, as well as construction disciplines within the wider public sector, thus contributing to the government construction policy on promoting sustainability to the built environment.

A Disaggregated Optimization Approach for Competitive Procurement of Energy and Operating Reserve

In restructured environment, Ancillary Services (AS) plays a vital role, as they are required for reliable and secure operation of the power system. Operating Reserve (OR), as one of the main AS, is a capability of a power system to prevent any unexpected imbalances caused by generation, transmission or equipment outage has been considered in this work. The approach is based on disaggregated clearing of energy and OR, which can support the development of an effective reserve allocation and pricing methodology. This approach is based on sequential clearing of Energy Market (EM) and Reserve Market (RM) with the objective of procurement cost minimization. The optimization problem is formulated and solved using Optimal Power Flow (OPF) technique which considers all transmission constraints and power flow limits. In this model, the energy is procured first in EM followed by OR in RM. The procurement of both energy and OR using sequential approach has been demonstrated by considering modified IEEE 5-unit test system. Keywords : Electric power deregulation, auction design, operating reserve, sequential dispatch, energy market, reserve market

U.S. Surface Transportation Public–Private Partnerships: Objectives and Evidence—Extended Findings

Public agencies pursue many goals when employing alternative procurement approaches like public–private partnerships (P3s) to develop and renew transportation infrastructure. Evaluators often focus on economic efficiency. However, that rarely represents an agency’s sole or even primary objective. This paper identifies government sponsors’ objectives in selecting P3s as a delivery approach and the extent to which projects have met those objectives. The paper extends previous work examining six case studies of U.S. P3 projects by adding three additional projects out of a total population of 21 U.S. P3 projects launched since 2003. The new case studies introduce important elements of P3 projects, namely, a multistate project and a project that encountered financial challenges and bankruptcy. The new case studies generally confirm that public agencies pursue six objectives when employing P3s: (i) accessing private-sector financing; (ii) accessing private-sector expertise and innovation; (iii) accelerating project delivery; (iv) increasing certainty about project cost, schedule, and quality; (v) transferring and managing risk; and (vi) improving transit and development opportunities. Government sponsors generally achieved their goals. They might benefit further by: (a) pursuing private-sector expertise and innovation earlier; (b) elevating risk transfer objectives; (c) incorporating broader transit, local development, and value capture opportunities; and (d) improving outcome measurement, analysis, and transparency practices. The U.S. government may also benefit from reconsidering the statutory authority granted to the U.S. Department of Transportation when it holds debt in bankrupt projects.

Improving public works’ value for money: a new procurement strategy

PurposeThe purpose of this paper is to propose a new procurement strategy with the aim to achieve higher value for money (VFM) in public works delivery. Its main innovation lies in the possibility of optional submission of cost-efficient design variants by any interested contractor within the context of an open procedure. The final scope of works incorporates the variants approved, and all contractors are invited to submit a bid for the revised scope and budget.Design/methodology/approachThis paper is a piece of applied research presenting the development of a new, cost-effective procurement strategy for public works, geared at the European Union (EU) legal framework. The strategy’s feature compilation has been based on comprehensive literature review while numerical data from a real world project were used to demonstrate its financial advantages.FindingsThe proposed strategy enables the delivery of the best value project at the lowest cost possible. This is achieved through ensuring high competition among competent contractors, improving the cost efficiency of technical solutions, discouraging future scope changes and establishing objectivity, fairness and transparency in the process of contract award.Practical implicationsThe use of the proposed strategy results in public projects of enhanced VFM, reduced constructability issues and less scope changes during the construction stage.Originality/valueThe proposed strategy marks a new approach in procurement which enables the delivery of best VFM in public works. Therefore, it makes a valuable contribution towards the achievement of the overarching EU target for efficient public spending.

IMPLEMENTING CONTRACTOR KNOW-HOW IN EARLY PHASES OF COMPLEX INFRASTRUCTURE PROJECTS

The importance of bringing contractor know-how into early construction project phases has long been recognized by the construction industry. Although experts and practitioners have considered new forms of procurement and management for construction projects, no significant solutions have been identified until now. It should be mentioned in this context that the Austrian government initiated the implementation of a new procurement approach in 2015 by reducing the opportunity for public clients to award the contract to the bid with the lowest price in conformity with the European guidelines. Austria's infrastructure industry is thus seeking new approaches that are able to implement the know-how of all parties involved in a project. The aim of this paper is to identify possibilities for early contractor involvement and its potential for optimizing the project management in the Austrian infrastructure industry.

Endoscopic radial artery harvesting with a non-sealed approach.

Endoscopic radial artery harvesting is considered a safe and effective approach for graft procurement during coronary artery bypass graft surgery. As an alternative to open techniques, minimally invasive approaches are associated with superior outcomes in terms of morbidity and patients' discomfort, without affecting graft quality, patency rate, and long-term outcomes. Both sealed and non-sealed systems are available for endoscopic conduit harvesting. Sealed systems require carbon dioxide gas insufflation, which may have a damaging impact on the endothelium. Non-sealed systems do not require carbon dioxide insufflation and thus avoid the potential drawbacks of its use. In this video tutorial, we provide a thorough description of the surgical technique for endoscopic radial artery harvesting using a non-sealed approach.

Endoscopic saphenous vein harvesting with a non-sealed approach.

Endoscopic saphenous vein harvesting is considered a safe and effective approach for graft procurement during coronary artery bypass graft surgery. As an alternative to open techniques, minimally invasive approaches are associated with superior outcomes in terms of morbidity and patients' discomfort, without affecting graft quality, patency rate, and long-term outcomes. Both sealed and non-sealed systems are available for endoscopic conduit harvesting. Sealed systems require carbon dioxide gas insufflation, which may have a damaging impact on the endothelium. Non-sealed systems do not require carbon dioxide insufflation and thus avoid the potential drawbacks of its use. In this video tutorial, we provide a thorough description of the surgical technique for endoscopic saphenous vein harvesting using a non-sealed approach.

Contractual issues for Building Information Modelling (BIM)-based construction projects: An exploratory case study

Building Information Modelling (BIM) enables close collaboration among project stakeholders to visualize what is to be built in a simulated environment by identifying any potential design, construction or operational issues. Despite the fact of its well-documented benefits, the extensive integration of BIM throughout the project lifecycle remains sporadic. The conventional contracts used in the Malaysian construction industry were established before the development of BIM. As BIM becoming ingrain in the delivery process, the inadequacies of these existing contracts have become visible. This paper presents the results of an exploratory case study using Qualitative Content Analysis dedicated to a BIM project and discusses a procurement approach of BIM to establish the contractual context by addressing the legal and contractual impediments namely; intellectual property, liability and process related risks-allocation in a Malaysian public construction. This paper also outlines the reasons why the implementation of BIM will foster the evolution of integrated contract delivery methods.

Is the Public Private Partnership Model the Right Vehicle for Public Infrastructure Delivery in Developing Countries?

There has been an increase in the number of governments that adopted public-private partnership (PPP) as an infrastructure delivery model. However, there are still misgivings about the role PPPs play in developing countries’ economies. The objective of this study is to address the question of whether the PPP model really benefits the public. This study follows a qualitative approach based on international review of literature on PPP experiences around the world. The results of the study indicate that, the PPP model can be a good vehicle for delivering public infrastructure projects in developing countries. However, for PPPs to meet the expectations of the public sector and the citizens there are certain aspects that need to be in place i.e. transparency, accountability, optimum risk allocation/sharing, and increased competition to name just a few. If a country implements its PPP programme properly, there are massive benefits compared to the public procurement approach that may accrue to consumers and the economy as a whole. Such benefits include reduced prices, which may also increase access to services. The study has elucidated valid from invalid arguments about PPPs and has established whether the PPP model is indeed the right vehicle for delivering infrastructure projects.

A developed software agent-knowledge-assisted procurement management tool for retailing enterprise

PurposeThis study aims to develop a software agent-knowledge procurement management tool to address uncertainties from external and internal environments, such as record failure, slow logistics auditing and distribution delay toward improving procurement management in retailing enterprises.Design/methodology/approachQuantitative methodology was used to collect data using a self-administered survey from randomly selected procurement staffs, marketers and customers to measure their perception regarding the feasibility and acceptance of the implemented agent-knowledge-based procurement management tool.FindingsResults from empirical analysis reveal that the implemented tool facilitates collaboration and interaction among buyers, sellers and procurement managers toward enhancing procurement managers’ flexibility to handle unexpected exceptions. In addition, results confirm the feasibility of the implemented tool in supporting procurement management toward handling inventory failure exception, which occurs in traditional procurement approaches. Moreover, descriptive results from user acceptance test verify that the tool was accepted by the respondents.Research limitations/implicationsThe limitation of this study is that the implemented tool is evaluated using data collected from respondents in Malaysia retailing enterprise only; thus, the results cannot be generalized to other enterprises and country. In addition, research implications from this study design a methodological and comprehensive software agent-knowledge-based model that support buyers, sellers and procurement managers with information to facilitate buying and selling operations.Practical implicationsPractically, the designed software agent-knowledge-based model describes how software agents collaborate with each other to facilitate procurement tasks and also use the knowledge base in the implemented tool to provide information sharing platform that manages the dynamics of procurement operations.Social implicationsThis research integrates software agents which are autonomous programs that carryout pre-defined task on behalf of end users. Socially, this study would be useful for procurement managers in developing mechanisms for instilling insights in retailing operations.Originality/valueThis research is among the first to attempt to develop a software agent-knowledge-based model to support procurement management in the retailing enterprise domain. It contributes to promote e-procurement practices by implementing a software agent-knowledge-oriented tool to address uncertainties experienced in retailing enterprise. It is envisaged that this study will provide basis for future research into e-procurement practices for retailing businesses in Malaysia and beyond.

Embedding occupational health and safety in the procurement and management of infrastructure projects: institutional logics at play in the context of new public management

The research explored the approaches used by government agencies (as client organizations) to drive occupational health and safety (OHS) performance improvements in publicly funded infrastructure construction projects in Australia. Semi-structured interviews were conducted with 32 representatives of clients and contractors with direct and recent experience of delivering large public infrastructure projects. Interviews explored the procurement approaches taken, and the use of incentives and performance measurement. Data was subjected to inductive analysis to identify emergent concepts and themes relating to the way that New Public Management (NPM) influences the commercial management of infrastructure construction projects, with particular reference to OHS impacts. The concept of institutional logics was utilised as a theoretical frame to understand clients’ behaviour in the commercial management of infrastructure projects. Client behaviour was consistent with elements of NPM and reflected a managerialist logic in the pursuit of efficiency, the use of targets, incentives and performance measurement. However, a strong professional service logic was also found to drive active client behaviour in relation to the management of OHS. Understanding the institutional logics driving client OHS practices is an important theoretical development that can stimulate reflexive practice which may create an impetus for change.

Perspectives on issues and the application of the innovative procurement approaches for the Industrialised Building System (IBS)

Malaysia is making an aggressive effort of transformation to become a fully developed country. As one of the pillars for transformation, the construction industry has been undergoing a major reform with regard to the traditional method of construction. In recent years, the Industrialised Building System (IBS) has been promoted extensively with the government taking a lead with the practice. Studies showed that IBS has been able to expedite construction process, improve the time taken to accomplish a project, improve building quality, able to control cost and human resources, which in overall, raise occupational health and safety standard of construction. Despite, as most IBS projects were carried out under the traditional procurement method, the full benefits of IBS are somehow obscured. Several issues such as work delay, lack of communication and integration, lack of knowledge and an increase in cost, which are synonymous to the traditional procurement method appear to outweigh the benefit of IBS. Hence, this research aims to suggest an alternative to the traditional procurement method with regard to IBS project implementation. The focus of this research has been on the challenges and innovative procurement methods most suited for IBS project. Two objectives were outlined: (1) to identify issues faced by the client on current procurement method in IBS project; and (2) to identify the client’s perspective on innovative procurement method most suited for IBS project. Data for this research was collected through semi-structured interviews with five respondents from five major developers having experience in IBS project implementation. The results from the thematic analysis revealed that apart from the common issues which ascend from the sequential nature of the traditional procurement method, design integration issue was opined to aggravate the situation. Unanimously, respondents agreed that partnering is the way forward for IBS project implementation in the Malaysian construction industry. This research contributes by providing important pointers for the local construction industry to move forward with IBS project implementation.

How Procurement Judges The Value of Medical Technologies: A Review of Healthcare Tenders.

Procurement's important role in healthcare decision making has encouraged criticism and calls for greater collaboration with health technology assessment (HTA), and necessitates detailed analysis of how procurement approaches the decision task. We reviewed tender documents that solicit medical technologies for patient care in Canada, focusing on request for proposal (RFP) tenders that assess quality and cost, supplemented by a census of all tender types. We extracted data to assess (i) use of group purchasing organizations (GPOs) as buyers, (ii) evaluation criteria and rubrics, and (iii) contract terms, as indicators of supplier type and market conditions. GPOs were dominant buyers for RFPs (54/97) and all tender types (120/226), and RFPs were the most common tender (92/226), with few price-only tenders (11/226). Evaluation criteria for quality were technical, including clinical or material specifications, as well as vendor experience and qualifications; "total cost" was frequently referenced (83/97), but inconsistently used. The most common (47/97) evaluative rubric was summed scores, or summed scores after excluding those below a mandatory minimum (22/97), with majority weight (64.1 percent, 62.9 percent) assigned to quality criteria. Where specified, expected contract lengths with successful suppliers were high (mean, 3.93 years; average renewal, 2.14 years), and most buyers (37/42) expected to award to a single supplier. Procurement's evaluative approach is distinctive. While aiming to go beyond price in the acquisition of most medical technologies, it adopts a narrow approach to assessing quality and costs, but also attends to factors little considered by HTA, suggesting opportunities for mutual lesson learning.

Patterns in sustainable relationships between buyers and suppliers: evidence from the food and beverage industry

Although research on sustainable procurement is increasing, little empirical research has been done on how sustainable procurement is established between companies. Therefore, drawing on supply chain management and purchasing management literature, this study explores how food industries manage sustainable supplier relationships. Through the identification of company clusters with typical sustainable procurement approaches, the paper contributes to the supply chain management literature. A questionnaire is applied to gather data amongst Dutch Food and Beverage companies from which 62 could be used for the analyses (effective response rate 28.9%). Cluster analysis revealed four types of companies with distinctive sustainable procurement relationships: market relationships (arms-length), sustainability leader, one-sided sustainability (interested supplier but less interested buyer), and inconclusive sustainability (buyer and suppliers only made a start). As the implementation of sustainable procurement remains low in practice, insights from this study are important for managers.

Knowledge processing and ecosystem co-creation for process innovation: Managing joint knowledge processing in process innovation projects

Process innovation drives industrial competitiveness and sustainability but remains elusive since it requires co-creation and the sharing of idiosyncratic design knowledge in ecosystems of providers and customers of process equipment. This paper investigates how firms can manage knowledge processing through co-creation in joint process innovation projects. Analysis of cross-comparative case studies –including nine industrial ecosystem actors – identifies three types of technological challenge (complexity, novelty and customization) that creates knowledge-processing requirements (uncertainty, equivocality) during the value co-creation process. To manage these knowledge-processing requirements, this paper explains how three joint knowledge-processing strategies (joint problem solving, open communication and end-user involvement) help ecosystem partners make sense of the requirements and demands in process innovation. In this context, the procurement approach (such as contracting and relationship development) helps to facilitate higher levels of joint knowledge processing, drawing on the diverse knowledge of ecosystem actors to secure successful process-innovation outcomes. The present study contributes to the emerging literature on co-creation in process innovation by developing a framework that highlights the knowledge-processing dynamics in ecosystem relationships for process innovation. The implications for management extends to a practical tool that guides project managers in ensuring appropriate levels of joint knowledge processing among ecosystem actors.