Framework For Public Procurement Research Articles

INFLUENCE OF STRATEGIC E-PROCUREMENT PRACTICE ON PERFORMANCE OF DEVOLVED SYSTEMS OF GOVERNMENT IN KENYA

Purpose: The purpose of this study was to establish the influence of strategic e-procurement practice on performance of Devolved systems of government in Kenya.
 Methodology: The study adopted cross-sectional survey design using both quantitative and qualitative approaches. The target population was all the 47 devolved systems of government. The sample size was the 10 counties namely; Garissa, Kisii, Nyamira, Narok, Marsabit, Murang’a, Bomet, Nairobi, Kiambu and Homa Bay specifically employees working under finance and procurement department. The study adopted stratified random sampling to pick 186 respondents from finance and procurement department. Data was collected by using questionnaires Descriptive and inferential statistics was used aided by Statistical Packages for Social Sciences version 24 to compute percentages of respondents’ answers. Hypothesis testing was carried using multiple regression analysis and standard F tests. The results were presented using tables.
 Results: The study findings revealed that Strategic e-procurement practice explained 49.6% of the total variations in performance of devolved systems of government in Kenya. Further, results indicate that the overall model was statistically significant as supported by a p value of 0.000. This was supported by an F statistic of (F=155.245, p<0.05) and the reported p value (0.000) which was less than the conventional probability of 0.05 significance level. The standardized regression coefficient for Strategic E-procurement was 0.704. This indicates that a unit increase in the Strategic E-procurement would result in 70.4% increase in the performance of Devolved systems of government in Kenya this implied that there is a strong positive relationship between Strategic E-procurement and performance of Devolved systems of government in Kenya .
 Unique contribution to theory, practice and policy: Based on the findings, the study recommends that devolved systems of government should adopted e-procurement system and automate all procurement operation procedures to enhance smooth work flow and hence improve efficiency the study further recommends that Devolved systems of government should adopt e-procurement for various uses such as in the standardization of services for representation in the catalog, sourcing goods and services globally, as way of reducing costs in areas such tendering processes, payment and contract management. But management should be aware and cautious that e-procurement is capital intensive in terms of acquisition and laying down the required infrastructure and highly perishable. Thus the study recommends that strategic e-procurement practice should be implemented within the legal framework of public procurement acts and regulations because it moderate has positive correlation with the performance of Devolved systems of government in Kenya. The findings are in harmony with technology acceptance model which suggest that emerging technologies cannot improve organizational effectiveness and performance if the change has not been accepted by the users. Therefore first it’s crucial for the users to accept the new technology (e-procurement) so as to reduce administrative costs, possible broadening of suppliers’ base, and easy access to preferred goods. In conclusion technology acceptance model can be used by future scholars.

Бюджетно-налоговый маневр в сфере публичных закупок

The article focuses on the priority of the norms of financial and legal regulation in public procurement, allowing not only to realize the true goals and objectives of public procurement, but also to ensure a balance of public and private interests. The author’s position on the development of competition and targeted support for domestic producers through the use of fiscal maneuver in public procurement is presented. According to the results of the study, it was proposed to legally secure the possibility of using a single tax account of a legal entity in the framework of public procurement in order to implement a budget and tax maneuver.

Framework for Sustainable Procurement - Identifying Elements for Construction Works

Sustainable procurement has been considered an opportunity for improving the environmental performance of the construction industry. The development of sustainable procurement in Indonesia is still in its initial phase. Therefore, a framework is needed to establish an outlook to explore the enablers and barriers for promoting sustainable procurement in the construction industry. In the formulation of the framework, the first step is to identify the important elements. The approach was explorative-descriptive. Based on ISO 20400, as the guidelines for sustainable procurement, and literature on sustainable procurement for construction works, a list of elements was gathered. In-depth interviews were conducted to identify the most significant elements for the Indonesian construction public procurement context. Respondents included procurement experts from the government agency, (i.e., the National Public Procurement Agency and the Ministry of Public Works and Housing), academics, and procurement specialists who are the members of the Indonesian Procurement Professionals Association. Results suggest that all elements contained in ISO 20400 are relevant with the kinds of literature on construction works; also, Indonesian respondents agreed with all the identified elements ranging from “important” to “very important.” This finding will be subsequently used to further understand the complex cause-effect relationships among the important elements in developing the framework for sustainable construction public procurement.

The European Commission goes ‘cloud first’: A roadmap towards trusted cloud adoption to seize the opportunities of digital transformation for EU institutions and agencies

Cloud computing is likely to be taken up extensively by governmental organisations in the coming years, including the European Commission (EC), Parliament, Council and other EU institutions (EUIs), as well as EU executive or decentralised agencies and other EU bodies.1 On 21st November, 2018, the EC adopted a digital strategy (ECDS) with the double objective to transform the Commission into a user-focused and data-driven organisation. Building on the conclusions of the Tallinn Digital Summit in September 2017, this strategy recognised the need for the public sector to seize the opportunities offered by digital technologies and to accelerate the completion of the digital single market. Realising that cloud computing is already transforming the way to deliver state-of-the-art public services globally, the EC ambitions to become a data-driven administration by 2022. Digital strategy aims at a broad adoption of cloud computing by 2022, working closely with other EUIs and member states. This objective is framed by a cloud strategy for the EC. The main purpose of this paper is to provide the readers with a detailed analysis of the approach to information technology security taken by the European Commission’s Directorate General for Informatics (DIGIT) under its cloud strategy and by other EUIs in their cloud adoption. The adoption of cloud computing by EUIs takes place against the dual background of increasing pressure to become digitally enabled and a reinforced regulatory framework on personal data protection and information security. A common approach to cloud consumption will enable common strategies for compliance with legal requirements. The adoption of cloud computing by the EUIs also unfolds within a highly structured public procurement framework. DIGIT is planning to work within this framework using dynamic procurement models, which will enable access to a fast-evolving cloud computing market. Building on the experience of the first cloud framework contract (Cloud I), DIGIT is coordinating the preparation of the Cloud II framework contract to enable access for EUIs to the global market of cloud providers from 2020. With DIGIT serving as a broker, we will explore the challenges and opportunities that the European Commission is facing on its digital transformation path. This paper explains some of the lessons that the EUIs have learned from cloud experiments, from 2014 on through the Cloud I.

More Than a Nudge? Arguments and Tools for Mandating Green Public Procurement in the EU

The present research paper analyses the EU general and mandatory sectoral legal framework on public procurement, arguing for its inhibiting effect on the EU-wide uptake of green public procurement. It explores de jure and de facto barriers to green public procurement, motivated by the need for a change in the business world towards more sustainable practices through preferably mandatory legal changes of EU corporate law. As the public procurement represents a strong nudge for a qualitative change in private market demand, accounting for a minimum of 12% of the national gross domestic product, it should become environmentally sustainable itself and guide markets through the qualitative and quantitative changes on the demand side. Given the complexity of the current legal framework and the novelty of the approach to public procurement as a strategic tool for the achievement of sustainable production and consumption, a better defined and clear legislative approach is called for, possibly in a mandatory form, clarifying the obligation of public procurers to account for sustainability in their practices, especially as regards incorporating environmental concerns in their purchasing activities. In its current form, the EU legislative public procurement framework entails a seemingly permissive attitude towards green public procurement, hampered in practice by the existing legal institutes in the field, which hamper the strategic use of public procurement and thereby its influence on sustainability on the private markets.

SMALL STATES, HIGH STAKES: A POLICY PROPOSAL TO DELIVER WELFARE VIA PUBLIC PURCHASING

The article shows how and to what extent Caribbean British Overseas Territories (BOTs) can adopt social award criteria in public procurement. In the past decade, BOTs have experienced economic distress, political misdemeanours and rising perceptions of corruption. Lacking public procurement experience, how can these small, remote and socially unequal territories make the most of UK-led reforms? The article proposes inserting social award criteria in Caribbean BOTs' public procurement frameworks using a three-phase roadmap based on inspecting its potential, checking the legal framework and implementing the policy via legislative amendments and guidance. Experiences in the EU, the UK and the Latin America and Caribbean region show successful results, primarily in small communities at the local level. The methodology used is desk-based research leading to a worldwide survey of successful practices and a legal and policy analysis of its application to Caribbean BOTs.

The Impact of Professionalization in Public Procurement – evidence from a case study

The importance of public procurement for achieving value for money in public purchases – thus obtaining important savings in the use of taxpayers’ money and effectiveness in meeting citizen’s demand for public goods of a given quality – is widely recognised, as made clear by the Directive 2014/24 of the European Union and the international legal framework for public procurement at large. But how can these goals be met? Professionalization is a necessary condition and thus represents a key part of the final answer. But what kind of professionalization is really needed? In what environment? With which results? These questions are rarely answered with real life examples. Taking advantage of a questionnaire-based cohort of individuals that have gone through a process of professionalization in an international environment, this paper expands on its challenges and on the importance of professionalization of the persons working in public procurement-related activities as key to an efficient use of public money.

Technocracy in Paradise: Assessing the Social Impact of Public Procurement in the Cayman Islands via Public Sector Interviews

ABSTRACTIn May 2018, the Cayman Islands (Cayman) set up a framework for public procurement, regulating public purchases with the private sector for the first time. One year on, this article critically explores the social impact of public procurement in Cayman’s public sector through interviews with the Governor of the Cayman Islands and other leading public-sector figures. It is argued that public procurement should improve the country’s financial probity, underpin future infrastructure and unlock local markets. However, cultural constraints limit the role that procurement can play. First, the system of laws is still developing and current practice has uncovered the need for a number of amendments. Second, a great deal of trust is being put in an untested public-private partnership model with no prior experience. Third, local preferences limiting international competition are being encouraged in contract awards. The article intertwines scholarly literature and empirical data from the interviews to identify Cayman’s impending social challenges and the extent to which they can be overcome using procurement.

Compliance Issues with Public Procurement Regulations in Ghana

This study examines compliance issues with public procurement regulations in Ghana. The simple random sampling technique was used to draw a sample size of 100 practitioners from public institutions in Ghana. The collected data were analysed using descriptive and inferential statistics. The study revealed that although public procurement entities in Ghana have made some strides in improving compliance levels with the public procurement law, majority of public institutions disregard their management systems and contract management processes among others. The study indicates that familiarity (p-value = 0.020) though inversely related, incompetence (p-value =0.023), political interference (p-value =0.000) and poor monitoring (p-value =0.010) were significant factors in explaining non-compliance with the legal framework of public procurement in Ghana. The research further discovered that officials in charge of public procurement flout the rules and regulations with impunity. To address the issue of non-conformance by public officials, it is imperative for the Public Procurement Authority to desist from embarking on what could best be described as selective justice and apply the law equally on all non-conforming public institutions. The authority must also strengthen its monitoring systems to ensure that offenders are apprehended and adequately sanctioned according to the law.

Rethinking The Role Of Civil Society In Public Procurement

Global challenges increasingly require collaborative state-civil society efforts. The formulation and delivery of public policies are no longer the prerogative of the public administration alone. Instead, civil society might play an important role in public policies, including buying practices. Although examples of civil society’s involvement already exist in some public procurement frameworks, its potential is still underexploited or even neglected as to specific public procurement’s stages or purposes. Whilst some specific provisions have been enacted to ensure its effective participation in public procurement to enhance transparency, civil society involvement in buying processes might help fostering sustainability. This paper specifically analyses the questions on how and when (ie at what procurement stage) the involvement of civil society is/can be provided and for what purpose(s) in the light of the 2018 OECD-MAPS and the MDBs guidance documents with a particular focus integrity pacts. Keywords: Sustainable public procurement; Civil society; Integrity.

Public procurement as an object of analysis in the context of reforming the system of public finance management

The theoretical framework of public procurement through the definition of the concept of «ublic procurement»is analyzed, the role of analysis in the public finance management system, the principles of analysis of public procurement and its functions are studied. The article offers to interpret the public procurement as a component of public financial management system that constitutes a standardized mechanism of financial and economic relations between the government and business entities on the implementation of the state order for the goods, services, works on the principles of fair competition among participants, maximum economy and efficiency, the targeted use of budget funds, openness and transparency at all stages of procurement, equality of participants, objective and impartial evaluation of tender proposals, prevention of corruption actions and abuses to achieve the goals of state social and economic policies to meet public needs. The system of analysis principles of public procurement is reasonably presented: accuracy; completeness; adequacy of information; consistency; relevance; usability; specificity; complexity; consistency; regularity; objectivity; efficiency; economic feasibility; comparativeness; scientificity. The functions of the analysis of public procurement are the following: informative, control, evaluative and diagnostic, search, prognostic, protective, scientific and cognitive. The basic tools will make it possible to build a scientifically based mechanism for the analysis of public procurement.

Influence of the Public Procurement Procedure Type on the Duration of Public Procurement

This study analyses how important is the influence of the procedure type and a number of received bids on the duration of the public procedure process. Efficiency and speed of public procurement process diminish inventory turnaround times, direct and indirect costs of procurement, hastens and improves manageability of core processes in the organizations obliged to the public procurement process. Our study focuses on the quantitative analysis of the influence of the procedural public procurement framework mostly determined by the central government and describes potential other factors of efficiency which can be influenced at the local level. Dataset was obtained from the Public Procurement Office of Serbia, and it included 42,850 cases of public procurement after the correction of missing and “dirty” data. Using statistical methods we have presented two linear models, where the type of procedure and number of received bids account for roughly 23% of the variability in the dependent variable. This paper provides suggestions for improvement of efficiency of public procurement, as well as for data that needs to be tracked to develop more comprehensive, accurate and reliable prediction model of the duration of the public procurement process.

An Examination of the Legal Framework for Public Procurement in Nigeria

An Examination of the Legal Framework for Public Procurement in Nigeria

Caught between the Devil and the Deep Blue Sea: A Rough Guide to the Strangely Unenviable Life of a Public Procurement Official in a Post-RTPP, and Now Post-GeM, Rajasthan

This year’s 71st Independence Day Speech of India’s visionary Prime Minister included an announcement implementing yet another innovative public policy instrument, one that electrified all stakeholders interested in public procurement reforms in India, in the shape of a much-awaited launch of the Government e-Marketplace (GeM) launched by the Directorate General of Supplies & Disposal (DGS&D)—as an online platform enabling simplified and streamlined buyer-seller interactions for public goods and services across the Country. As in many other states in India, this ambitious e-platform has also been adopted by the State Government of Rajasthan as a permissible medium for government purchasing for use by all procuring officials of the State. This short paper examines some of the peculiarities already existing under the legal framework for public procurement in Rajasthan; as also the additional complexities and challenges for the State’s public procurement officials that could get thrown up during the roll-out of this important, far-reaching initiative of the Central Government. Staying within the context of multiple, and sometimes competing, desiderata of public procurement, the paper then concludes with suggestions for the Government of Rajasthan for ensuring a more streamlined achievement of the expected end-objectives of this important procurement reform exercise.

Оценка эффективности закупок государственного заказчика Республики Крым в условиях воссоединения с Российской Федерацией

Objective: to analyze the procurements of the executive authority of the Republic of Crimea in the transition period and to evaluate their effectiveness.Methods: the study used the methods of grouping, vertical and horizontal analysis, economic-mathematical modeling. Results: after the Republic of Crimea disconnection from the Ukraine and subsequent accession to the Russian Federation, the state customers in the region were in a difficult situation due to the adaptation of the existing procurement system to the Russian legislation norms. Basing on the data of the Republic of Crimea Ministry of Justice, the authors analyzed the state procurement across all stages of changing the legal field for the customers of the Republic. On the basis of the study, it is concluded that under the Ukrainian legislation the bulk of procurements was carried out without competitive procedures, while the remaining purchases showed the low level of savings. We also revealed the increase of procurement procedures complexity after the Republic accession to the Russian Federation, while during the transition period the customers made procurements according to a simplified procedure. The analysis of the procurement effectiveness for the customer showed that, as a result of legislative changes, the number and value of competitive procurements significantly increased, as well as the saving rate of tenders and auctions. On the basis of correlation-regression model the authors have proved the hypothesis that number of the procurement participants has an effect on the savings rate. As a result, the necessity of increasing the number of competitive procurements was substantiated, since the number of participants directly affects the savings rate in the course of bidding. Scientific novelty: on the basis of the analysis, the authors showed a positive economic effect from the changes in the legal framework of public procurement for a particular customer - the Republic of Crimea, which was manifested in the growth of savings rate and the number of competitive procedures. With economic-mathematical methods the authors proved the hypothesis that the saving rate increased following the results of procurement procedures, if the number of participants of the auctions and tenders increased. According to the results of the analysis, proposals for improving the contract procurement system are formulated. Practical significance: the proposed recommendations can be used by state customers and public authorities in procurement procedures and changes in laws and regulations in the field of public procurement with the aim of improving the efficiency of the contract system.

The Role of Quality in the Adjudication of Public Tenders

The quality of the goods or services that government procures is obviously a very important consideration in deciding which supplier should be awarded a particular public tender. It follows that in the regulation of public procurement, particular attention should be given to the role of quality (also called functionality) in the adjudication of public tenders and the final award decision. In South African public procurement law, the role of functionality in public tender adjudication has been a fairly controversial issue that has resulted in a continuing interaction between courts and law-makers on how and when quality should be assessed and should impact on the final award decision within the framework for public procurement found in section 217 of the Constitution. This contribution tracks the development of the role of functionality in public tender adjudication as prescribed by public procurement regulation since the enactment of the Preferential Procurement Policy Framework Act 5 of 2000, which spearheaded the development of contemporary public procurement regulation in South Africa. The analysis shows how the role of functionality has constantly changed since the enactment of the PPPFA and remains uncertain. This uncertainty relates to different interpretations of the constitutional requirements for public procurement primarily contained in section 217(1) of the Constitution. Whether functionality is used as a qualification criterion, an award criterion or both holds particular practical implications for both suppliers and contracting authorities. It is accordingly important to have certainty on this question. However, it cannot be said that the Constitution and section 217 in particular dictates one approach rather than another. The issue should thus be resolved with reference to the statutory scheme adopted under the PPPFA.
 

Konkurencyjność zamówień publicznych w Polsce na tle innych krajów Unii Europejskiej

Competitiveness of public procurement market is rarely subject of scientific economic investigations. The Polish public procurement law takes into account mechanisms of competing economic units, however the main goal of contracting authorities is to conduct a public procurement procedure in the way to enable a realization of public contract. The work analyses legal framework for public procurement in relation to the Polish market using data coming from sources: published by the Bulletin of Public Procurement (values less than the EU thresholds) and Tenders Electronic Daily (contracts with values higher than the EU thresholds) according to three groups of contracts: supplies, construction works and services in the time periods 2000–2014 and 2010–2013, respectively. Empirical results, based mainly on the average number of bids for each tender, prove that Poland is still at the end of rank list of the EU countries. Macroeconomic approach to the subject of competitiveness of public procurement market may be misleading because the public procurements play not only economic function, but mainly social and environmental ones.

Legal Framework for the Procurement of Public-Private Partnerships An Australian Perspective in the European Union Context

Based on an assumption that in its current shape the EU public procurement framework is a highly regulated and rigid system, in which delivery of successful PPP contracts may be hindered, in this paper it will be considered, whether there could be a different, more beneficial way in which to award PPP contracts. The question is whether an exclusion of the PPP award contract from the Public Sector Directive could be an adequate solution. It is worth considering, whether such a change would provide the flexibility needed and whether, at the same time, it could lead to a lack of legal certainty and hinder the development of EU integration.In order to answer the posed questions the author will apply a general systemic approach. The characteristics of this approach is to introduce and compare – at an overall level – the highly regulated European procurement system to another system which has an absolutely different approach towards procurement in order to investigate, whether an exclusion of PPP contracts from public procurement directives in the EU could be beneficial.

Sustainable Procurement: A Compliance Perspective of EU Public Procurement Law

This article analyses the conceptual link between law and compliance, exploring the different theories and types of compliance (corporate, state and regulatory) and how they can be found today within the EU legal public procurement framework. The analytical focus is on Directive 2014/24/EU and within it how sustainable requirements have increased the level of compliance required, particularly regulatory compliance. Compliance was already present in previous EU public procurement frameworks, but its extent on Directive 2014/24/EU leads the authors to consider the current legal framework as subject to substantial regulatory compliance obligations external to the process of procurement. In short, procurement has been transformed in a way to enforce regulatory obligations that are not intrinsic to the process of buying. This leads to the conclusion that questions such as the cost and trade offs from imposing compliance obligations to public and private bodies warrant further research, particularly at the legal, economic and political science intersection.

Public Procurement Framework in India: A Critical Review

Studies highlight that probity in public procurement in a country influences public opinion about fairness of public institutions (Clausen, Kraay, and Nyiri, 2009; Neupane, Soar and Vaidya, 2012). In India, a number of cases related to corruption in public procurements have been highlighted by media. Resultant adverse public opinion has resulted in poor standing of the country in various international rankings. For example, India is ranked 94/176 in Corruption Index (Transparency International, 2012), 51/139 on Competitive Index (WEF, 2010) and 124/190 on e-Gov Rankings (UNPAN, 2012). These incidents and rankings raise questions regarding robustness of the public procurement practices in the country. Objective of this chapter is review various constitutional, legislative and administrative stipulations which guide public procurements in India. The chapter brings out that even though there is no central law on public procurement, the procurement process is standard and uniform throughout India.