Local Government Procurement Research Articles

Fostering innovation through innovation friendly procurement practices: a case study of Danish local government procurement

Innovation has been at the forefront of procurement policy in Denmark in recent years. The policy incentives emphasize public procurement of innovation as a way to accelerate the development and application of environmental and health technologies, but also as a way to achieve a competitive advantage, growth and job creation. This paper uses a single case study to illustrate the procurement of a chemical-free cleaning system by the local government in Denmark. It describes the public procurement of innovation project in the response to an unsolicited bid from the supplier, and highlights the importance of innovation-friendly procurement practice for supporting innovation. The study identified indirect innovation effects of public procurement and number of conditions that have supported success of public procurement of innovation project such as close and early engagement with supplier; role of supplier acting as a technology champion; competence for applying functional specification; political support; sufficient resource allocation and institutional match between involved organizations. These findings lend support to the idea that public procurement of innovation may have occurred as a result of innovation-friendly procurement practice regardless of the lack of an explicit intention to promote innovation and challenge assumptions on which emerging policy initiatives are based on. These findings also suggest that the local government procurement may have a role to play in supporting innovation that goes beyond current definition of public procurement as a mission-oriented instrument to be exploited for resolving social challenges. These understandings could contribute to further policy development that may lead to a situation where public procurement of innovation is utilized to a greater extent than it is today in Denmark.

Making e-procurement work in a decentralized procurement system

Purpose – The purpose of this paper is to investigate the implementation of initiative e-procurement in decentralized system on Indonesia’s local government system. Design/methodology/approach – The authors combine quantitative and qualitative methods. The central finding of this research is that human resources are the pivotal factors that determine the performance of local e-procurement in three cities. This research focusses on three local governments in Indonesia – Yogyakarta City, Tangerang City, and Kutaikartanegara Regency. Findings – The central finding of this research is that human resources are the pivotal factors that determine the performance of local e-procurement in three cities. However, Tangerang City is going institutionalization phase in e-procurement initiative to ensure its sound local regulation. Research limitations/implications – There are several limitations to this study including the recent nature of decentralized procurement in Indonesia, limited standardized and disaggregated data on local government procurement expenditures and performance. Practical implications – The study recommends that human resources management in procurement needs to be addressed by both local and central government. Originality/value – e-Procurement is an important instrument for preventing corruption in goods and services procurement. Indonesia has been implementing an e-procurement policy since 2008 based on a Presidential Decree. The president has issued annual orders (presidential instructions), and all central ministries and local governments have been required to comply with them to obtain their budget through the e-procurement system. However, as of 2012 fiscal year, only around 10.26 percent of the central government institution procurement budget and 10 percent of the local government procurement budget in Indonesia went through the e-procurement system, with wide variations among cities.

Revised WTO Government Procurement Agreement(GPA) and Local Government Procurement Contract

Revised WTO Government Procurement Agreement(GPA) and Local Government Procurement Contract

Public procurement in the european union: The case for national threshold values

The single-most important parameter of a public procurement system is the threshold above which the framework applies. The optimization problem consists of finding a reasonable trade-off between the gains from public procurement and the administrative costs associated with procurement rules. In the present study, based on a sample of central and local government procurement operations in Sweden, an optimal threshold value in the range of 5,000—6,000 EUR is computed based on the requirement that the average gain should supersede the average cost. If a larger proportion of procurements is required to gain from the regulation imposed, a threshold value of 20,000—25,000 EUR should apply. The general conclusion is that there are strong arguments for maintaining procurement rules below the European Union threshold.

English

E-procurement is an important intrument to prevent corruption in goods and services procurement budget. Indonesia has been implementing the e-procurement project since 2008 based on Presidential Decree. President has stipulating annual order (presidential instruction) has to be obey by all ministries and local governments to procure their budget through r-procurement mechanism. However, untill 2012 fiscal year, this research found that only around 10.26% of central government institution procurement budget, including ministries and 21,10% of local government procurement budget did procure through eprocurement method. This research concluded that regulation, leadership and procurement intitution are challanging factors to make “status quo” e-procurement.

Hurricane Wilma and Long-Term Business Recovery in Disasters: The Role of Local Government Procurement and Economic Development

Hurricane Wilma and Long-Term Business Recovery in Disasters: The Role of Local Government Procurement and Economic Development

Third sector commissioning and English local government procurement

This article investigates third sector commissioning policy commitments and their relevance to English local government procurement. The conclusion is that there is confusion regarding the differences between commissioning and procurement. Policy commitments are not properly embedded in procurement policy, strategy, procedures and performance management. Other countries with an interest in these policy developments should take note of the issues regarding embedding in order to improve service delivery and commissioning decisions.

Why Collaborate on Local Government Procurement? The Experience of UK Councils

Within the UK public sector considerable encouragement has been given to working collaboratively on procurement. Although purchasing consortia have been a feature of the UK local government landscape and a shared services model has begun to emerge, little empirical research has been reported on whether other procurement collaborations take place, why organisations collaborate on procurement projects, what are the perceived risks and what type of procurement projects are considered suitable for collaboration. This paper reports on explorative research, to establish the answer to those questions. Suggestions are made for those considering procurement collaborative projects and further research.

European public procurement directives and their implementation in Slovenia

This article presents the results of the research work “Awarding work to external contractors,” carried out with a questionnaire in 2009 and 2010. The research examined the method and scope of public procurement in Slovenian municipalities with more than 8000 inhabitants. The objectives of the research work were: a comparison of public procurement legislation in selected EU countries; determination of the current situation in the field of public procurement in local government in years 2008 and 2009; determination of similarities and differences in the implementation of contracts; determination of the most common open questions in the implementation of contracts; determination of good practices in public procurement and making the recommendations for changes. Public procurement represents a significant proportion of national budget spending. Municipalities allocate around 20% of all expenditures to public procurement. The scope and methods of public procurement vary between municipalities. Small-value public procurement is determined by the municipalities in their internal acts, while large-value public procurement has legally prescribed procedures. New legislation on public procurement has brought innovations in the field of public tender and contract award procedures for procurement, which enables greater flexibility in the implementation and realisation of public procurement. This article presents also the European directives on public procurement and an international comparison of public procurement in selected EU and EEA states.

Determinants of unethical public procurement in local government systems of Uganda: a case study

This paper examines the relationship between institutional framework and management systems on one hand and unethical behaviour in procurement management on the other hand. It explores the extent to which institutional and management systems could be the determinants of the increasing unethical behaviour in local government procurement systems in Kibaale District, Uganda. The results are from a cross-sectional descriptive study design that attracted a total of 77 respondents out of the sampled 86 (a response rate of 89.5%). The reliability analysis of the results was found to be with an alpha = 0.804. Descriptive and relational statistics were used to analyse the data obtained from a closed five-Likert-scale questionnaire. The findings overall do not show a very strong relationship between institutional frameworks and management systems as key determinants of unethical behaviour, suggesting the presence of other possible determinants. However, the results indicate that there are two specific variables under management (communication and monitoring and evaluation) that have a statistically significant correlation with unethical behaviour in procurement. We compare the results with existing literature and suggest practical and policy implications.

Public procurement strategy for accelerating the economic recovery

PurposeThis paper aims to consider the problem of public procurement's contribution in moving from the current global economic downturn and accelerating the economic recovery.Design/methodology/approachA literature review is used to establish perceived local government procurement best practice. Secondary research is then drawn upon to establish local government procurement's response to the current economic recession. The paper is set within the context of English local government. The paper's contribution is in highlighting that perceived best public procurement practice may well, in the short‐term, be inappropriate and perhaps delay economic recovery. Suggestions for more radical short‐term procurement strategic interventions are set out and justified as accelerating the economic recovery. The suggestions are considered appropriate, not only for the current crisis, but also for future economic downturns or indeed any country facing such a situation.FindingsThe analysis suggests that English local government procurement strategy generally remains unaltered from that adopted prior to the economic recession. It is then argued that current best practice may well hinder an economic recovery and a short‐term shift in procurement strategy is required.Research limitations/implicationsThe economic recession is a current phenomenon and the secondary research could well suffer from self‐selection bias, nevertheless the review of current policy documents suggests that a short‐term shift in procurement strategy is justified.Practical implicationsThe paper identifies the weaknesses in current procurement strategy prior to setting out a short‐term alternative procurement strategy that could help public procurement managers accelerate a viable economic recovery.Originality/valueThe current global economic downturn represents a major challenge to public sector organisations, yet there remains an assumption that English local government procurement strategy developed during a period of economic boom, is appropriate during the recession. This paper challenges that assumption and sets out a procurement strategy that could accelerate economic recovery. The strategy advocated can be tested and the lessons learnt utilised in other countries or during future periods of economic downturn.

State and Local Government Procurement and the Winter Commission

The Winter Commission proposed a state and local government procurement reform agenda that placed public managers at the core of a depoliticized, deregulated, and more pragmatic public sector contracting process. Drawing on the literature and data from several state and local government surveys, this article shows that between 1992 and 2003, state and local governments’ contracting practices moved in directions consistent with the commission’s reform agenda. By 2003, state and local governments had decentralized and deregulated their contracting processes, were contracting more effectively and in circumstances in which it is more likely to be successful, and had adopted several innovative technologies and management practices.

Procurement planning and accountability of local government procurement systems in developing countries: evidence from uganda

The contribution of planning in facilitating an efficient and effective performance of public sector organizations is generally undisputed in both developed and developing countries. Its contribution can be at both central and local government levels of public sector management. This article examines the relationship between procurement planning and accountability of local government procurement systems in Uganda. The findings arose from a study that was conducted among 99 local government stakeholders selected from 11 Districts of Uganda, using a correlation research design. The data was analyzed using principal component factor analysis that aimed at identifying the critical components of procurement planning and accountable local governments systems in Uganda. Consequently, correlation analysis to establish the direction and magnitude to which the two variables were related was conducted and results are presented. The findings revealed a significant positive relationship between procurement planning and accountable local government procurement systems in Uganda. These results are compared to international research findings, and suggestions are offered for management, policy making, future research and efficient accountable local government operations.

Sustainable procurement in practice: Lessons from local government

By committing to green procurement, the UK government has taken a key initial step towards sustainable development. But can this be put into practice? This policy analysis explores the background to green procurement in English local government through desk research and data collection, including interviews with five local authorities. It finds that green procurement has been encouraged through legislation, providing information and dismantling barriers, but momentum was lost following the Gershon review. Implementation of the new action plan would ensure green procurement becomes embedded within government procurement. New information to link up green procurement with organisational goals would also expand the horizons of green procurement.

Buying into our future: sustainability initiatives in local government procurement

AbstractLocal government in the United Kingdom is well placed to make a contribution to sustainable development in its area. Although only enjoying partial autonomy from central government without its own constitutional basis, its aggregate purchasing expenditure dwarfs that of central government. Case study research into procurement by local authorities in England reveals a wide range of activities aimed at addressing the challenges of sustainable development, covering environmental and social as well as economic development aspects. However, these initiatives are still of a patchy nature, in terms of both differences between aspects of sustainability and variation between local authorities. Many sustainability initiatives also have cost implications for local government, which may clash with other priorities. To overcome such barriers, local authorities could cooperate with other public sector organizations in the United Kingdom and beyond, as well as with the private sector, to learn from the sustainability experience elsewhere. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.

Strategic procurement in uk local government: The role of elected members

This paper is concerned with the potential role of elected members in the UK local government strategic procurement process. Strategic procurement and the best value regime are discussed. A working definition of strategic procurement in local government is then provided. The rationale for councils to review member involvement in strategic procurement follows. Observations from action learning case studies are discussed prior to proposals being offered as to what might represent appropriate new roles for elected members in the UK local government strategic procurement process.

Evaluating eReverse auctions (EeRA)

PurposeTo evaluate issues relating to the implementation of electronic reverse auctions (eRA) within local government procurement processes.Design/methodology/approachThe methodology is a structured case analysis approach to enable qualitative data to be modelled through a visual toolset simulation.FindingsThe paper identifies a set of business scenarios to demonstrate the impact of different eRA strategies in this respect.Practical implicationsThe case research described in this paper proposes a detailed, achievable and valid approach to evaluating the complex issues associated with eRAs.Originality/valueThe outcome of the investigation will provide valuable insights into the complexities associated with the eProcurement process.

The private sector in rural water and sanitation services in Uganda: understanding the context and developing support strategies

AbstractThis article analyses private sector delivery of water and sanitation services in Uganda. Uganda's policies of decentralization and privatization, combined with enhanced sector funding through debt relief, provide the context for the work described. After a brief description of the attributes of small water sector enterprises, the findings of extensive interviews with all the major stakeholders in eight of Uganda's 56 districts are set out under eight thematic headings (corruption; community participation; role of NGOs; private sector support services; networks and associations; local Government procurement procedures; construction quality; business viability) and two sets of root causes. The paper concludes that a sector strategy requires a limited number of focus areas in order to avoid overwhelming the institutions and local ownership. The strategy should lie between the extremes of prescriptive and process oriented approaches. Monitoring mechanisms should balance quantitative with qualitative data. Finally, a balance is needed between the drive for short‐term impact through physical outputs and the long‐term sustainability of water and sanitation services so delivered. Copyright © 2003 John Wiley & Sons, Ltd.

Briefing: NEC and local government procurement

The NEC Engineering and Construction Contract (ECC) provides a sound basis from which to develop a suitable contract by which local government can procure works and services. The underlying principles of the ECC, as stated in the first condition, seek to promote mutual trust and co-operation for the benefit of the parties and the project. These principles fit well with the increasingly onerous procurement obligations being placed on local government by statute.

NEC and local government procurement

The NEC Engineering and Construction Contract (ECC) provides a sound basis from which to develop a suitable contract by which local government can procure works and services. The underlying principles of the ECC, as stated in the first condition, seek to promote mutual trust and co-operation for the benefit of the parties and the project. These principles fit well with the increasingly onerous procurement obligations being placed on local government by statute.