Awarding Process Research Articles

A microcredit evaluation model for non-bank financial institutions

Purpose The paper aims to develop a microcredit evaluation model (MEM) which could serve as a useful tool for banks and NBFIs when SMEs’ economic and financial risks are evaluated. Design/methodology/approach Based on the literature review, a set of 17 qualitative and quantitative prudential indicators is selected. Further, a calculation system is developed which relies on the multiple criteria analysis model elaborated by Altman (1968); starting from this, a matrix is developed and a rating system is built. The model is tested among six NBFIs which operate on the Romanian market; three of them are labeled by the Romanian Central Bank as the worst performers, while the other ones are qualified as the best performers. Data are collected from companies’ annual reports and also from the Ministry of Finance. Findings It proves that the MEM can serve as a useful tool for the national and international NBFIs’ risk assessment. It can anticipate NBFIs’ success or fall. Furthermore, its results can be guaranteed with a probability of 95 per cent, calculated through the VaR method. Last but not least, it can also be used by the international NBFIs which intend to enter in the Romanian market. Originality/value The present paper proposes an original model based on both quantitative and qualitative indicators organized in an integrative equation. The MEM helps both parties involved in the financial grant awarding process – NBFIs are able to better assess requests from SMEs, enabling them to increase the volume of granting, whereas SMEs are able to access money for development projects more easily.

IN SEARCH OF ALTERNATIVE AWARDING CRITERIA

In Austria, the public procurement of construction works is mainly based on two different types-the lowest acquisition costs and the most economically advantageous tender. The first one only considers the price, which means, that the contract is awarded to the bidder with the cheapest price. The other principle refers to the most economically advantageous tender, which has to be chosen for projects that exceed a certain overall tender value or are related to projects with higher complexity. This principle focuses on considering other awarding factors besides the price, but it often fails its purpose due to the lower weighting of these issues. Over the last years the market has not expanded very much, therefore there is a lot of competition related to the lowest price, which results in inadequate quality and opens up the field for further claims. In order to end the tense price competition among the competitors and to increase the quality of the projects, new criteria with serious weighting will be needed and to fulfill the most economically advantageous tender and supporting the focus on construction quality. Even though there are acknowledged guidelines dealing with environmental aspects of construction sites, like the RUMBA guideline (Richtlinien für umweltfreundliche Baustellenabwicklung-Guidelines for Sustainable Construction Site Management). However aspects of sustainability are no common standard within construction processes. To capture the common standards of sustainable measures on construction sites, and the industries’ understanding for environmental topics, research on experts in the field was done. Based on the authors’ acknowledgements, the paper targets the aspects of an environmental friendly construction site and introduces new criteria for the awarding process, and mentions some of the findings such as the “technical equipment expertise” or “sustainable construction site management”.

공공사업 경쟁입찰에서 낙찰자 결정방법분석 및 국방획득사업의 합리적인 사업자결정 방안

The current contract awarding process regulated by laws and ordinances is analyzed and more reasonable processes are suggested. To this end, the principle of economic analysis is described with emphasis on the cost-effectiveness analysis, and the laws and ordinances regulating the process are thoroughly examined. The current contract awarding rule is based on the weighted sum of effectiveness score and cost score. This may not conform to the framework of economic analysis where effectiveness is supposed to be measured as an output and cost measured as an input. An improvement is attempted to the defense acquisition system and it is recognized that the economic analysis and policy consideration should be performed separately. Concept of statistical testing is introduced to see if the results of the cost effectiveness analyses show the significant difference between the alternatives. It is suggested that the contract awarding process can be improved by performing significance test followed by the aggregation of the two analyses. A minor improvement is also suggested on the application of current rules.

Legitimating journalistic authority under the state's shadow: a case study of the Environmental Press Awards in China

This study investigated the legitimation of journalistic authority in the form of journalism awards. The Environmental Press Awards, an unofficial but highly regarded news competition among Chinese environmental reporters, was selected as a case study. The case was examined from three interconnected dimensions: the creation and maintenance of moral and pragmatic legitimacies; the strategic processes of cognitive and social legitimation; and a dual process of symbolic legitimation of the market media ideology. Research conclusions were formed based on statistical analysis of 181 award submissions and 10 in-depth interviews with key personnel in the host organizations, the journalism community, and environmental non-governmental organizations. By looking into the establishment, dynamics, and results of the awarding process, the alliance between the market media and the green civil society was seen to have created and buttressed the legitimacy of the award. Without the blessing from the party-state, such legitimacy is vulnerable but can also be enabling.

Assessing the potential impact of the CO2 Performance Ladder on the reduction of carbon dioxide emissions in the Netherlands

Green public procurement is often promoted as a tool to reduce energy use and CO2 emissions in the supply chains of public entities. However, only a limited number of studies has quantitatively assessed the environmental impacts of green public procurement schemes. The aim of this paper was to assess the potential impact of the CO2 Performance Ladder on the reduction of carbon dioxide emissions in the Netherlands. The CO2 Performance Ladder is a new green procurement scheme that is currently used by several Dutch public authorities. It is a staged certification scheme for energy and CO2 management. Achieving certification gives companies a competitive advantage in the contract awarding process. Currently, more than 190 companies participate in the scheme. The scheme accounts for 1.7 Mt of aggregate CO2 emissions, corresponding to nearly 1% of national greenhouse gas emissions in the Netherlands. Since the introduction of the scheme, total CO2 emissions have decreased substantially. Nevertheless, these emission reductions should be interpreted with caution because the emission reductions are largely due to reductions by a few companies, and the level of emissions is affected to a large extent by economic activity. The companies participating in the scheme have set different types of CO2 reduction targets with varying levels of ambition. The projected impact of reaching these targets on CO2 emissions is a total CO2 emission reduction in the range of a 0.8–1.5%/yr, with a most likely value of 1.3%/yr. The CO2 Performance Ladder could therefore contribute significantly to achieve the annual reduction rate necessary to remain below the 2020 Dutch emission ceiling for sectors not included in the European Union Emission Trading Scheme.

Legal Issues Regarding the Cost-Covering Compensation (KEV) for Electricity Through Renewable Energy Sources

As of May 2008 the Swiss legislator introduced the StromVG (power supply legislation) which provides a model promoting renewable energy. This model states that producers of electricity through renewable energy sources will receive compensation to cover their manufacturing costs over a period of 2'225 years. These payments will be made independent of current market prices. The so-called cost-covering compensation (KEV) will be covered by a surcharge on transmission costs of high voltage networks. This promotion aims at an increase of the annual electricity production through renewable energies of 5400 GWh. The surcharge on the transmission costs qualifies as public taxes. According to the prevailing doctrine the state needs an explicit constitutional basis to introduce new taxes which in this case is missing. Therefore, according to the applicable legislation the KEV would have to be financed by the general state budget. The plant operators’ applications for the KEV are taken into account firstly, depending on when they were handed in and secondly, according to the capacity of the power plant. In several respects this order of priority is unsatisfactory. Moreover, the prevailing order of priority disregards other important public interests. Consequently, this order conflicts with the right to equality because in our opinion the awarding process favors large-scale plants and disregards other important parameters of a power plant such as its technical and economic efficiency.

Determining terminal concession durations in seaports: theoretical considerations, applicable techniques and current practices

The awarding of terminals to private operators is considered a prime task of landlord port authorities. Yet, terminal concessions in seaports have only recently gained interest in academic circles. The awarding process poses a complex set of managerial challenges to port authorities, one of the key issues being the determination of the duration of the concession. Despite the importance of the duration of terminal concessions in seaports, the issue has not received much attention in academic circles. Factors impacting on the duration of contracts, leases or concessions have, however, been studied extensively in other research areas, such as agriculture, coal contracts, franchising and natural gas. This paper uses insights from these academic studies to obtain a better understanding of the impact of concession duration on the stakeholders involved and relates them to empirical evidence on concession length in European seaports. The paper then proposes a classification scheme for the exogenous determination of concession duration, based on techniques developed for Public-Private-Partnerships in large infrastructure projects. In the last section the paper discusses the importance of concession durations to various stakeholders in seaports and illustrates these principles using a case study.

Determining terminal concession durations in seaports: theoretical considerations, applicable techniques and current practices

The awarding of terminals to private operators is considered a prime task of landlord port authorities. Yet, terminal concessions in seaports have only recently gained interest in academic circles. The awarding process poses a complex set of managerial challenges to port authorities, one of the key issues being the determination of the duration of the concession. Despite the importance of the duration of terminal concessions in seaports, the issue has not received much attention in academic circles. Factors impacting on the duration of contracts, leases or concessions have, however, been studied extensively in other research areas, such as agriculture, coal contracts, franchising and natural gas. This paper uses insights from these academic studies to obtain a better understanding of the impact of concession duration on the stakeholders involved and relates them to empirical evidence on concession length in European seaports. The paper then proposes a classification scheme for the exogenous determination of concession duration, based on techniques developed for Public-Private-Partnerships in large infrastructure projects. In the last section the paper discusses the importance of concession durations to various stakeholders in seaports and illustrates these principles using a case study.

The economics of procurement contract awarding: problems and solutions in theory and practice

The main aim of this paper is to review some of the newest and most promising advances in auction theory with an eye to applications to procurement practice. Here we focus in particular on four topics related to multidimensional auctions: 1) how to define a proper scoring rule when the awarding bodies lack the necessary information regarding its own preferences and suppliers’ technology; 2) how to cope with the information disclosure policy regarding the discretional evaluation of some aspects of each contractual proposal; 3) how to use contractors’ reputations based on their past performance in the awarding process; 4) how to control the risk of collusion and corruption in the awarding phase.

The economics behind the awarding of terminals in seaports: Towards a research agenda

Terminal concessions in seaports have only recently gained interest in academic circles. Issues such as the allocation mechanisms (to be) used for granting those concessions, the determination of the concession term and concession fees, as well as the inclusion of special clauses aimed at assuring that the terminal operator will act in the interest of the port authority and the wider community, are increasingly relevant to both academics and the port industry. So far, insights from established economic theories have rarely been applied to terminal concessions in seaports. It, therefore, remains to be seen which kind of awarding procedure would be best for which type of terminal concession. This contribution provides a detailed overview of the different phases of the terminal awarding process, including a classification scheme for awarding procedures, and contains an extensive discussion on the economic issues that require further investigation. The paper concludes by proposing a comprehensive research agenda on the topic.

Is this year's exam as demanding as last year's? Using a pilot method to evaluate the consistency of examination demands over time

Abstract Maintaining standards over time is a much debated topic in the context of national examinations in the UK. This study used a pilot method to compare the demands, over time, of two examination units testing administration. The method involved 15 experts revising a framework of demand types and making paired comparisons of examinations from different years and sessions (from June 2003 to June 2006) with respect to the types of demands in the framework and overall. Frequency data were used to ascertain the relative demands of examinations from different sessions. There was greater variation with some types of demands than others. However, overall demands appeared to be relatively stable from June 2003 to June 2004, whilst December 2004 exams were relatively more demanding and those after this were relatively lower in demands. The differences seem unlikely to have been sufficiently large to compromise the awarding process which acts to maintain standards. Participants completed a questionnaire evalua...