In-house Procurement Research Articles

Procurement Outsourcing Strategies and Organizational Agility: A Comparative Analysis of Pharmaceutical Companies in Brazil

Purpose: The aim of the study was to analyze the procurement outsourcing strategies and organizational agility: a comparative analysis of pharmaceutical companies in Brazil. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on procurement outsourcing and organizational agility in Brazilian pharmaceutical firms found that comprehensive outsourcing boosted agility through external expertise, streamlining processes and improving cost-effectiveness. In contrast, reliance on in-house procurement posed challenges to adaptability and competitiveness. Strategic procurement outsourcing emerged as vital for enhancing organizational agility in Brazil's pharmaceutical industry. Unique Contribution to Theory, Practice and Policy: Resource-Based View (RBV), transaction cost economics (TCE) & dynamic capability theory may be used to anchor future studies on analyze procurement outsourcing strategies and organizational agility: a comparative analysis of pharmaceutical companies in Brazil. Pharmaceutical companies in Brazil should develop customized procurement strategies that align with their unique internal resources, capabilities, and strategic objectives. Policymakers should encourage collaboration between pharmaceutical companies and outsourcing partners by providing regulatory support and incentives.

Implikacje zastosowania trybu in-house przy zamówieniach publicznych z udziałem regionalnych funduszy rozwoju

The article has a scientific and research nature and addresses a problem of significant importance for the implementation of statutory tasks by local government units. The authors focus on the implications of awarding in-house procurement to regional development funds. They analyse the prerequisites for the use of in-house mode of public procurement and assume the hypothesis that the scope of the activities of the contractor of an in-house contract, which is a regional development fund, should include the full conducted activities of such an entity, regardless of the type of contract awarded, as long as these activities are within the scope of the tasks entrusted to it by the contracting authority exercising control over it (or by another legal entity over which this contracting authority exercises control). The originality of the research results concerns not only the chosen approach to the subject of in-house procurement, i.e. elaboration on regional development funds as public procurement contractors, but also the argumentation itself, which was based on the current case law and legal doctrine. The above brings a new cognitive value in the sphere of science and practice and has a potential to help local government stakeholders manage municipal property more confidently.

Finland ∙ Important In-House Procurement Case Affecting Finnish Market

Finland ∙ Important In-House Procurement Case Affecting Finnish Market

The Role of In-House Procurement According to Finnish Municipalities' Purchase Invoice Data

Public sector is a large consumer for ICT systems and services development used for various public services. Tendering for such systems is governed by laws aimed at eliminating unfair advantages and offering all possible parties equal opportunities to participate in the tendering process. In this article, we study in-house procurement, where the acquiring organization is an owner of the subcontractor that delivers the system. Municipalities purchase invoice data is used to determine how greatly municipalities in Finland depend on in-house procurement. In conclusion, the understanding if included municipalities have ICT service and development units within the organizations needs closer examination, as in-house companies may offer municipalities with limited resources divided costs in the public procurement process.

The Problems of In-House Procurement in Lithuanian Public Procurement

Abstract Although the in-house procurement, as an exception to public procurement process, have existed in Lithuanian law for more than a decade and the European Union has expressed a clear positive position on the issue by legalize it in international level with Directive 2014/24/EU, but this legal institute still is not analysed enough in scientific level in order to evaluate its situation and problems in Lithuanian public procurement law. Especially, when in order to find the most optimal legislative regulation of the in-house procurement, the Lithuanian legislator has changed this legal institute many times and in many ways without its clear decision as to how the issue should be regulated in statutory regulation. Therefore, the object of the research is the legal institute of the in-house procurement in Lithuanian public procurement law and the aim of the research is to analyse the peculiarities and problems of this legal regulation and its application in legal practice. The article uses basic research methods such as document analysis, systematic analysis, comparative analysis, the deduction analysis and generalization methods. The analysis of this article shows main problems of this legal institute of Lithuanian public procurement law seen clearly in legal regulation and practice require as well as provide the certain solutions for necessary substantial adjustment of existing legal regulation on this question.

The possibility for municipal subsidiaries to seek in-house public contracts and EU funding for local and regional development projects

The aim of the article is to analyse the issues of establishing and functioning of municipal subsidiaries and the lawfulness of such companies applying for EU funding for local and regional development projects. In this article, the author attempts to answer the following questions: what limitations are there in the procedure for founding municipal subsidiaries?; can municipal subsidiaries seek public contracts within the framework of in-house procurement?; can municipal subsidiaries apply for EU funding? The study was conducted using the legal-dogmatic method and it was based on an analysis of legislation and selected decisions of the Court of Justice of the European Union and the Polish National Appeals Chamber relating to the awarding of in-house public contracts and the founding of municipal subsidiaries. Further analysed were the legal possibilities for such companies to be awarded in-house public contracts and to apply for EU funding to invest in their projects. The study allowed to answer the questions posed. The concept of new business entities, or municipal subsidiaries, being founded by local authorities or their municipal companies is not only permitted by law, subject to certain statutory restrictions, but it may also turn out to be advantageous when it comes to awarding public contracts on an in-house basis or seeking EU funding for local and regional development projects. The study allowed for the creation of legal grounds for the practical use by local government units of the concept of municipal subsidiaries, in particular in terms of in-house public contracts and applying for EU funding for local and regional development projects.

Analysis of the Implementation of In-House Procurement Policies on Micro and Small Businesses in the State Budget/Regional Budget

Analysis of the Implementation of In-House Procurement Policies on Micro and Small Businesses in the State Budget/Regional Budget

Proving Compliance with the Condition of Economic Dependence in In-House Contracts

The concept of in-house procurement respects the discretion of the Member States regarding the provision of public services and allows for purchasing and contracting services outside the competitive market. Contracting authorities may award an in-house contract to a controlled legal person if they demonstrate that the conditions of organisational and economic dependence have been met. This article analyses the condition of economic dependence and ways to prove that it has been satisfied. Numerous questions regarding the legal forms of entrusting tasks to a controlled legal person, the means of performance of such tasks in the context of admissibility of subcontracting, the methods of calculating revenue derived from the performance of tasks entrusted by the contracting authority and permissible forms of financing a controlled legal person arise in practice and jurisprudence. In view of the above, this publication is an attempt to clarify doubts. Keywords: in-house contract; in-house procurement; subcontracting

Impact of the judgement of CJEU in case C-285/18 on in-house transactions in Poland

This Article analyses the judgment of the Court of Justice of the European Union of 3 October 2019 (case C-285/18). This judgment plays an important role in the interpretation of the public procurement rules in the countries of the European Union. In particular, in those countries that have implemented the EU rules on the in-house procurement, while at the same time introducing restrictions compared to the EU rules. Current Polish regulations on in-house procurement in this area are also discussed.

Sustainable procurement: comparing in-house and outsourcing implementation modes

Sustainable supply chain management practices can be particularly difficult to implement when the responsibility for sustainable procurement (SP) rests with buyers employed by a contractor, rather than an in-house procurement team. Yet there is no extant research that investigates the effect of outsourcing on SP. To address this research gap, this paper uses multi-case study data to explore the impact of outsourcing versus in-house implementation modes in the pursuit of SP. The findings suggest that each implementation mode has distinctive challenges and facilitators. However, by considering Transaction Cost Economics, results reveal that the advantage of outsourcing to professionals, with well-established SP expertise, brings information asymmetries in developing initial outsourcing contracts, which can lead to poorer sustainability performance than initially expected. Furthermore, when applying Principal Agency Theory, results suggest that sustainable performance can be improved in the long term through the effective design of well-constructed contractual relationships as SP maturity increases.

Public procurement spend analysis at a national level in Finland

Purpose The purpose of this paper is to make a contribution for the unclear boundaries of public procurement in accounting terms. International organizations, public organizations’ national control entities and managers are interested in monetary spend. Public procurement literature and the system of national accounts lack proper definitions of public procurement in accounting terms or are framed by legal procedures. Design/methodology/approach The authors draft clear monetary definitions for procurement boundaries and develop an alternative, more refined bottom-up method of calculating public procurement spend. Findings The calculation for Finland is based on reliable secondary data and shows considerably higher procurement spend than traditional SNA statistics or procurement notices. Originality/value The calculation can be replicated in other countries using the 2008 SNA coding for organizations. The paper highlights the need to address in-house procurement in future research.

Legislative framework of in-house procurement

The article “Legislative Framework of In-house Procurement” examines the importance of the concept of the in-house transactions in Public Procurement. The purpose of the work is to analyse the Legislative Framework from the perspective of the principle of free competition. The study of free competition is based on works and the main ideas of the following authors: Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Robert Malthus, John Stuart Mill, John Maynard Keynes, Friedrich August von Hayek and Milton Friedman. Having done the analysis of the EU directives and regulations concerning In-house Procurement (Directive 2014/24/EU; Directive 2014/25/EU; Directive 2013/34/EU; Case C-107/98, Case C-26/03, Case C-84/03, Case C-295/05, Case C-480/06, Case C-324/07, Case C-573/07, Case C-196/08, Case C182/11 and C183/11), as well as normative regulations of several countries, the author made a conclusion, that In-house Procurement contains considerable threats to the principle of free competition in Public Procurement. In-house Procurement contains considerable threats to the principle of free competition in Public Procurement. The data obtained confirm this hypothesis. The results obtained allow us to develop recommendations for the Legislative Framework of In-house Procurement. The results of the research can be used by procurement theoreticians and practitioners.

In-House Procurement – The Discretion of Member States Confirmed, the Relationship with Competition Law Remains Open

Article 12(1) of Directive 2014/24 must be interpreted as not precluding a rule of national law whereby a Member State imposes a requirement that the conclusion of an in-house transaction should be subject, inter alia, to the condition that public procurement does not ensure that the quality of the services performed, their availability or their continuity can be guaranteed, provided that the choice made in favour of one means of providing services in particular, made at a stage prior to that of public procurement, has due regard to the principles of equal treatment, non-discrimination, mutual recognition, proportionality and transparency. The conclusion of an in-house transaction which satisfies the conditions laid down in Article 12(1(a) to (c) of Directive 2014/24 is not as such compatible with EU law. Keywords: In-house procurement; Member States discretion; Competition law.

In-house Procurement – How it is Implemented and Applied in Poland

This article discusses the issue of in-house procurement under Polish regulations and how they are applied by local authorities. The authors focus on special conditions in national provisions additional to those provided for in Directive 2014/24/EU. The Polish legislator allows the award of public contracts in a negotiated procedure without publication (single source procurement) among other differences. Polish regulations provide for the performance of local authority tasks via local authority acts. The authors analyse the relationship between public procurement and competition law with regard to the position of local authorities as entities playing a key role in organising public services markets; in Poland, local authorities, including municipalities, have the status of ‘undertaking’ when organising the performance of public services. What has been observed on the market is the tendency for municipal companies to use the privilege created for them in in-house procurement regulations to encroach on a market that is not related to the tasks of their owner and compete with private operators. EU law sets some limits on in-house procurement but does not in itself guarantee uniform application of this modality, leaving a great deal of freedom to Member States. Keywords: Self-governance; In-house procurement; Competition principles; National regulations.

IN-HOUSE PROCUREMENT EXCEPTION: THREAT FOR SUSTAINABLE PROCEDURE OF PUBLIC PROCUREMENT?

The article analyses an in-house procurement concept in the contexts of scientific doctrine, substantive law and legal practice. The Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC is discussed in the part of provisions regulating cases where a public contract between public entities is not a subject to public procurement procedures. In addition, statistical data of in-house procurements in Lithuania are presented and threats of in-house procurement concept application as well as possibilities of improvement thereof are assessed.

Assessment of Factors Influencing Facility Management Procurement Route in Lagos State, Nigeria

Procurement of Facility Management (FM) services can be made through three main approaches; In-sourcing, Outsourcing or a combination of both In-sourcing and Outsourcing (Hybrid). The approach taken depends on the priority set by the organisation for the services to be procured amidst prevailing constraints and limitations. Many organisations follow a rule of chance approach in choosing a particular FM procurement option that seems right at the time and then wait to learn from the outcome later, this no doubt can come at a very high consequence to the organisation. This study therefore assesses the factors influencing the choice of procurement routes in facilities management. 75 structured research questionnaires were distributed, 55 were completed and returned representing a 73% response rate. The findings of this study shows that continuity and risk management are the most important factors influencing decision when considering in-house procurement route for FM services while reduced overhead and improved process responsiveness were ranked as top factors considered when outsourcing and choosing the hybrid routes respectively. It was recommended that organisations must strive to achieve efficiency in their service delivery for enhanced customer satisfaction.

In-House Procurement and Horizontal Cooperation Between Public Authorities

In-House Procurement and Horizontal Cooperation Between Public Authorities

OPOs Limit Delays with In-House Organ Procurement

OPOs Limit Delays with In-House Organ Procurement

The Formation of Inter-Organizational Networks

I. INTRODUCTION II. RESOURCE FLOWS: ROLE OF ACTIVITY LINKS III. MUTUAL EXPECTATIONS: THE ROLE OF TRUST IV. INFORMATION FLOWS: THE ROLE OF THE CATALYSTS V. CONCLUSION