Tender Competition Research Articles

Унификация отраслевых торгов и их перевод в электронную форму как ключевые элементы совершенствования антимонопольного контроля за организацией и проведением торгов

The article is devoted to the research of the legal nature of tenders from the point of view of civil law and competition law, as well as identifying problems within the existing system of industry tenders, which lead to the formation of uncertain judicial practice. It is substantiated that the institution of tenders, initially formed and developed within the framework of civil law, at the present stage has acquired an interindustry character, in connection with which it is necessary to highlight both the civil and competitive significance of tenders. It is established that at the moment the legislation of the Russian Federation contains a significant list of cases of mandatory tenders, which, however, have a fragmentary industry character and do not ensure a sufficient level of competition. Based on this, arguments are given about the need to unify industry tenders in the form of uniform rules for organizing and holding tenders established by antimonopoly legislation, as well as transferring all tenders to electronic form to increase the number of tender participants, and, as a consequence, increase the level of competition in tenders for the purpose of effective implementation of state and municipal property.

Railways Tender Price Prediction Using Machine Learning and Deep Learning Algorithms

The idea of determining the optimum bid amount in any railway tender competition has been a complex and critical task. Reasonable pricing is the main gateway in the process of winning contracts. The approach presented here is based on data-driven pricing to maximize tender wins and reduce potential profit loss. The model shall make use of historical tender data, competitor pricing data, and market indicators in order to predict the optimal bid amounts. This advanced ML model runs advanced machine learning algorithms, including regression models and ensembles, to study the intricate relationship between factors that would affect the successful execution of a bid. Deep learning models are integrated into the model to provide it with better handling of temporal dependencies and other hidden patterns in data, hence yielding accurate and robust predictions. The key objective of the work is to increase the winning rate of tender contracts by at least 10%, while competitive profitability is ensured. Because of precise competitor price predictions, business success criteria are oriented to reaching this higher win rate on tenders. The Machine learning success criteria target a price prediction accuracy of at least 90%. Another important set of economic success criteria that should be targeted is an improvement in profit margins of at least 5% through more accurate pricing strategies and a reduction in the number of rejected bids. It will offer great value to the businesses operating in the railway industry in making proper decisions on operations and strategic planning. The paper develops a fusion of traditional statistical methodologies with advanced ML and DL techniques in order to provide a robust solution for competitive advantage and increased profitability in the dynamic and competitive railway tender market.

Market Concentration in Construction Tenders in West Papua

This study aims to determine the level of market concentration in construction work tenders in West Papua and to investigate the correlation between the market concentration index and the average participation in tenders, the number of work packages, and average tender savings. West Papua has privileges in procurement and has special autonomy funds for development. The study uses tender data from 2018-2022 and employs the Herfindahl-Hirschman Index (HHI) and Concentration Ratio 4 (CR4) to calculate market concentration. The results indicate that, based on HHI, the market concentration in the building construction and civil engineering subsectors is generally low, except for civil engineering in 2022. However, based on CR4, the market concentration in the building construction subsector is moderate, and in the civil engineering subsector, it is low, except for 2018. Moreover, there is a negative correlation between the number of packages and average participants, as well as between the number of packages and CR4 values. The findings of this study can be useful for construction providers to understand the competition in tenders and assist the government in developing competitive procurement strategies. Future research can investigate the economic benefits of local West Papua businesses when market concentration is low.

Principal Risks Associated with Public-Private Partnership Projects in Uganda

Public-Private Partnerships (PPPs) have been adopted globally to reduce funding gaps amidst an increasing need for public infrastructure. However, they are prone to several risks. Little attention has been paid to this crucial phenomenon in Uganda, despite the rising interest in the use of the PPP model. Through a questionnaire survey with PPP experts in Uganda, 34 principal risks were identified of which the top 10 are construction completion, government corruption, construction cost overrun, land acquisition, delay in project approval and permits, high financing cost, operation cost overrun, inadequate tender competition, procurement risk, and inability to service debt risk. Most of these were found to arise from inadequate experience in PPPs, the complexity of the PPP model, high levels of corruption and the immature domestic financial market. The knowledge of these risks can guide PPP contract negotiations and potential investors in their investment decisions, especially the objective assessment of PPP projects.

Study of the Risks of Termination of Contracts Concluded as a Result of Public Procurement

State and municipal purchases play an important role in the functioning of the economy of various countries, and, according to the World Bank and the Organization for Economic Development and Cooperation, they account for up to 15% of expenditures in the structure of world GDP, and in some countries from 23 to 45%. The spread of the novel coronavirus pandemic has led to the need to strengthen the role of the state, its participation in regulating the national economy, and increasing spending on the social sphere. In this regard, the system of state and municipal procurement becomes an area of increased attention, and its effectiveness is comprehensively assessed. In the context of the high degree of uncertainty that has developed in world markets (closure of manufacturing plants, lockdowns and border closures), which has significantly limited the global turnover of goods, works and services, the risks of execution of state and municipal contracts are increasing significantly. In this regard, the purpose of the study is to analyze the reasons for termination of contacts in the system of Russian state and municipal procurement and substantiate proposals for minimizing the risks of termination for buyers and contract executors. The study used the methods of statistical, retrospective analysis, comparative analysis, forecasting elements, calculations were carried out using a system developed in the Python language. The data is aggregated into a PostgreSQL 12 relational database. The data analysis itself, the selection of dimensions and metrics, as well as their visualization are implemented in the Microsoft Power BI BI-system. As a result of the study, the following conclusions were obtained: the probability of termination of state and municipal contracts concluded on the basis of public procurement does not directly depend on such factors as savings in tenders, competition in tenders, the size of the participating company (small business), as well as the industry, under which the purchase is made. Issues related to the study of non-formalizable reasons for the termination of government contracts remain debatable.

BUSINESS COMPETITION IN IMPLEMENTATION GOVERNMENT TENDER

The Business Competition Supervisory Commission (KPPU) has the authority to examine and decide on alleged violations of business competition in tenders under Law No. 5 of 1999 concerning Prohibition of Monopolistic Practices. The results of the study of Case Verdict Number: 34 / KPPU-L / 2009 are that there are several facts that business actors have violated Article 22 of Law Number 5 of 1999 that fulfills elements of conspiracy, the form of conspiracy is vertical collusion and conspiracy horizontal. In Case Decision Number 34 / KPPU-L / 2009 it is shown that a violation of business competition has Elements that can determine that there is an unfair business practice, in this case it is stated that Reported I, Reported II, Reported III, Reported IV, Reported V, Reported VI was proven to have been legally and convinced to have carried out a tender conspiracy. The formulation of the problem in the research is an analysis of the authority of the KPPU and the elements of a tender conspiracy. The type of research that was used in this journal were the Normative Research Type, and the data collection technique used is the literature study

Designing and implementing procurement requirements for carbon reduction in infrastructure construction – international overview and experiences

Carbon emissions emanating from infrastructure construction are substantial, and public infrastructure clients have begun to include carbon reduction goals in their procurement requirements. This is a new and complex field where practices vary and are still developing. Based on project documentation and interviews we map and analyze the design and implementation of carbon reduction requirements in projects by leading infrastructure clients in Australia, the Netherlands, Sweden, the US and the UK. Procurement requirements were influenced by concerns for tender competition, transaction costs and innovation, and further adapted to project delivery models, market maturity and client capabilities. Increasing awareness of practical and contextual constraints often led to modified strategies. This paper identifies factors that should be considered when designing carbon policies and requirements. This knowledge is important for clients and governments in order to develop more effective strategies for learning between contexts. Policies and future research should address client capabilities to drive long-term innovation.

The Russian System of Public Procurements: Persistent Problems in the Context of Legislative Changes

ABSTRACT Based on an analysis of data gathered from a mass survey of procurers and suppliers, this article discusses the problems of the public procurement system in Russia. Despite significant legislative changes, the national public procurement system still has persistent problems, including price dumping, regulatory conflicts, and a lack of competition in tenders. The answers given by survey participants were analyzed in the context of their work experience and other factors. One reason procurers and suppliers continue to have a negative perception of government regulation in this area is the fact that changes in procurement legislation have focused on satisfying the interests of departmental agencies while largely ignoring the concerns of individuals directly participating in the procurement process. For this reason, we offer several proposals for how to regularly monitor the opinions and assessments of ordinary procurers and suppliers.

Artscience Museum an Embedded Stand-Alone Art

This paper reviews and analyses the process and built-up of the ArtScience Museum. It touches on the history, building features and Moshe Safdie’s design approach in forming the museum’s architecture. Furthermore, it explores the motivations in having a cultural institution within the Marina Bay precinct and the correlation of what it was intended to be with the identity it has formed today. The Art Science Museum can be seen as a form of an add-on to Marina Bay Sands as the tender competition project included a design for a cultural institution. However, despite it being a form of enhancement, the ArtScience Museum arose and served its purpose being an intriguing form of architecture and a place for learning for people alike.

Competition, contest and the possibility of egalitarian university education

Competition and contest underpin academic life in many ways, not all of them constructive or valuable. In this paper I make a start on the task of distinguishing valuable academic competition from its opposite and suggest reforms of academic institutions that would diminish the prevalence of destructive competition and approach more nearly the egalitarian goal of treating all members of the academic community—especially, but not only, students—as equally valued and equally deserving of respect. To do this, I develop a distinction between two kinds of competition: tender competition and rank competition. I analyse the illusion of meritocracy in terms of them. My principal recommendation for university pedagogical practice is to eliminate grading of student work and replace grading systems with a system of demanding pass/fail assessments.

Well-known Scoring Rules under conditions of low competition in tenders

This paper studies the properties of some well-known scoring rules (linear scoring, highest bid - lowest bid scoring, and lowest bid scoring), which are applied in public procurement and public-private partnership scoring auctions to award contracts under conditions of low tender competition due to corruption and weak regulatory impact assessment. The proposed modifications to the agency model define a new approach to regulatory impact assessment. In the case of two bidders, the restrictions on criteria number and scoring weights are identified. The paper discusses several reasons to consider the quality of scoring rule as a critical success factor at procurement stage of public-private partnership projects as well for public procurement itself.

Well-known scoring rules under conditions of low competition in tenders

This paper studies the properties of some well-known scoring rules (linear scoring, highest bid - lowest bid scoring, and lowest bid scoring), which are applied in public procurement and public-private partnership scoring auctions to award contracts under conditions of low tender competition due to corruption and weak regulatory impact assessment. The proposed modifications to the agency model define a new approach to regulatory impact assessment. In the case of two bidders, the restrictions on criteria number and scoring weights are identified. The paper discusses several reasons to consider the quality of scoring rule as a critical success factor at procurement stage of public-private partnership projects as well for public procurement itself.

What policy space for diaconal institutions? Challenges from public procurement

Procurement processes with tender competition have been a preferred approach for engaging service providers in Norway. Even if the present Norwegian government finds it “essential that competition becomes an integral part of all public activity,” a simultaneous push for preserving the welfare mix of Norway has occurred, with public, non-profit, and for-profit actors. What specific measures are being undertaken to preserve the non-profit actors? How have the Norwegian authorities sought to utilize the policy space that the EU/EEA (European Economic Area) provides? The article concludes that Norway has a wide policy space for providing public health and welfare services through non-profit actors, but that this policy space is reduced if public procurement is chosen as the primary strategy for engaging non-public actors, whether non-profit or for-profit, to provide these services.

Corruption, Centralization and Competition: Evidence from Russian Public Procurement

ABSTRACTThis paper estimates the impact of corruption on the incentives of procurers to maintain honest competition in tenders. Customers, who procure for themselves, and Agencies, who procure for the customers in their region are considered. Basing on a large dataset of open auctions conducted by Russian regional-level authorities in 2011, the analysis shows that in highly corrupt regions, Agencies fail to arrange competitive tenders and most of auctions have one bidder. Customers attract more bidders for large contracts, but rebates are usually low. Therefore, procurement centralization may reduce the corruption of Customers, but cannot solve the problem of low competition.

Provider category and quality of care in the Norwegian nursing home industry

This paper examines empirically if there is a link between quality of care in the Norwegian nursing home industry and exposure of the industry to competition. Exposing public care to competition implies that the responsibility for providing care services is shared between public authorities and private actors. In Norway, exposure to competition means tender competition. Suppliers bid for a contract issued by the Norwegian authorities for a limited number of years. Quality of care in an institution is the major competitive factor. The provider categories of elderly care are: 1) care provided by institutions run by municipalities, 2) care provided by institutions run by private companies, which have won a tender competition, 3) care provided by institutions run by private companies owned by private families, voluntary religious or idealistic organizations. Nurse-to-patient ratio is used as a proxy for quality of care. The regression analysis indicates a relationship between quality of care and exposure to competition. The quality of care in provider category 2 is significantly lower than in provider category 1, but there are more variations in the quality of care in provider category 1 than in provider category 2. We find the lowest quality of care in provider category 1. There is also a relationship between the quality of care in an institution and the educational level of the staff, the location, the workforce, and the size of an institution. Finally, there is a relationship between the quality of care in an institution and the real and the required capacity, and the financial status in a region.Published: Online February 2016. In print August 2016.

Intelligent Data Systems to Aid Decision-Making at Tenders for Oil and Gas Fields Development

In the last few years the world oil and gas industry has experienced a rapid development growing more strongly than many other industry branches. Modern oil and gas industry aims at the extraction of natural resources at an increasing scale. The growth of oil production is conditional upon developing new exploration fields to create auspicious investment conditions, stabilize national social and political life using and implementing state-of-the-art technologies. It is efficient and vital for oil and gas companies today to contract different companies and their competences and resources in the development of fields, oil and gas extraction, transport and refining. It allows incorporating cutting-edge know-how in extracting natural resources by means of implementing new scientific and technological solutions aimed at further leveraging profitability based on inter-company cooperation thus opening opportunities for economic and social development and improvement but also environmental protection and quality of life. The search for a suitable partner/contractor to perform the necessary duties is difficult and laborious, and usually realized in the form of a tendering process.The complicated nature of organizing tenders requires creating new means and instruments which are designed to improve the choice efficiency and reduce the term of decision making. As evidenced by world experience from other industries the most prospective decision in this field are made using Intelligent Data Systems.This article deals with structure of intelligent information systems aiding decision-making using the case of an electronic tender competition. In this paper we provide a new approach for tendering in the oil and gas industry.

Construction Tender Competition for Two Railway Viaducts

The Neugut Viaduct begins at the small Sagentobel River, crosses a main road (Überlandstrasse) and the Glatt River and then divides before reaching ground level in an industrial area. The main bridge, which is approximately 920 m long, has two railway tracks both ramps being some 600 m in length, and an elevated approach of some 260 m. The Weidenholz Viaduct, starts at the edge of small wood at Aegert between Kriesbachstrasse and the six-lane Federal Highway N1, crosses the N1 at an acute angle and descends into an industrial area. It is appropriate to ask if the conditions in such railway viaducts as Neugut and Weidenholz, which did not create opportunities for important project variations, were such that a submission competition rather than a limited project competition or a fixed contract approach needed organising. The solutions proposed were interesting and diverse both financially and from the construction point of view; they offered the owner a true alternative.

Sealed bid auctions: an application to the building industry

This paper examines some of the theory and practice of competitive tendering in the building iildustry. Allocation of building contracts by means of competitive tendering is one type of sealed bid auction. T\vo main strands of the theory of sealed bid auctions are developed. The first strarul identifies optimal mark-up given that each tender competition occurs in isolution. The second strand treats explicitly the sequential nature of tendering and resource constraints of tenderers. It emerges that the first strand is a special case of the second. A simple optimal bid price rule is identijed, which indicates that bid price for any one contractor will be affected by theresources availuble to the contractor and general market conditions. It is shown that bid prices will be more competitive the better the information available to tenderers, the more carefully is the tender list constructed and the greater the number of firms invited to tender. It is further shown, however, that little is gained by having more...