Procurement Problem Research Articles

LAND PROCUREMENT FOR PUBLIC INTEREST IN LOCAL GOVERNMENTS WITH SMALL SCALE

<p><em>This study has purposes to find out how the mechanism of land procurement for the public interest in local governments, find out the obstacles and solve the problem of land procurement for the public interest on a small scale. Land procurement by the local government sometimes always collides with the stages of land procurement which is a very long process, but the land is needed immediately to support development. Small-scale land procurement is carried out on an area of no more than 5 hectares. Land procurement on a small scale for the public interest can be carried out without going through the determination of the location. The legal consequences are not being able to deposit compensation in court. This study uses a sociological juridical method, namely the discussion based on the provisions of the legislation. The results of this study are that the mechanism for land procurement for the public interest is carried out with accurate research and socialization so that the community understands the positive impact of development for the public interest and counseling so that the community understands the benefits of the project and participates in the success of project development for the public interest. Another obstacle in the implementation of land procurement is the existence of incomplete land ownership data or documents or no land ownership rights, the bureaucracy that guarantees legal certainty that the settlement of these obstacles is carried out with the active role of agencies that require land.</em></p>

Rationalizable Screening and Disclosure Under Unawareness

This paper analyzes a principal-agent procurement problem in which the principal is unaware of events affecting the agent's marginal costs. Since she does not conceive of all relevant events, her planned menu of contracts may be suboptimal. Communication arises naturally as some types of the agent may have an incentive to make the principal aware of some of those events before a contract menu is offered. The menu must not only reflect the principal's change in awareness, however: She also learns about the agent's types, as not all of them may have incentives to raise her awareness. We capture this reasoning through an extensive-form version of cautious rationalizability with beliefs on marginal cost types restricted to logconcavity and reverse Bayesianism (Karni and Viero, 2013). We show that if initially the principal is only unaware of some low marginal cost types, she is not made aware of all types and there is bunching at the top. If the principal is only unaware of some high marginal cost types, then she becomes aware of all types. Thus, the principal is happily made aware of inefficiencies but kept tacitly in the dark about some efficiencies. In any case, the principal offers an optimal menu of contracts for all types of which she is or has become aware. The possibility of disclosure improves ex post social welfare but does not always eradicate welfare frictions due to asymmetric awareness.

Stochastic energy management of an electricity retailer with a novel plug-in electric vehicle-based demand response program and energy storage system: A linearized battery degradation cost model

This study investigates the stochastic optimal electricity procurement problem of an electricity retailer in a smart grid environment. Various energy provision means, including distributed generations (DGs), pool market (PM), forward contracts (FC), photovoltaic (PV) system, wind turbine (WT), and Battery energy storage system (BESS) are considered. A novel plug-in electric vehicle (PEV) based demand response program (DRP) is integrated into the problem considering economic incentives for PEV owners, which is computationally fast, and it is based on the uncertainties derived from PEVs, such as arrival/departure time, daily traveled miles and vehicle type. Moreover, the uncertainty of PM price, solar irradiation, wind speed, and conventional loads are taken into account by an artificial neural network (ANN)-based scenario generation method. Furthermore, an analytical linear BESS degradation cost model is integrated into the objective function to ensure fast global optimization. To confirm the functionality of the proposed method, different operation schemes, such as with and without DRP, with and without battery degradation cost, are thoroughly inspected. Additionally, the sensitivity of the problem for the number of PEVs is analyzed. The proposed two-stage stochastic mixed-integer linear problem (MILP) is solved by commercially available optimization software.

Public procurement planning as an immunity to the budget process

The subject of the article is the research of public procurement in the context of budget expenditures efficiency.The purpose of the article is to confirm or disprove hypothesis that public procurement planning is the basis of a strategic relationship with the budget process. Their symbiosis can minimize any negative manifestations of a financial, economic and socio-political nature, including the consequences of crisis situations such as a pandemic.The methodology. The authors analyze many Russian and western scientific articles and monographs from the point of view of the budget process and planning of public procurement.The main results, scope of application. Planning of public procurement should be considered not as a separate need of one specific customer or a separate group of customers, but as a set of public consumption of all possible and necessary resources. The opposite approach will inevitably lead to additional budget costs for the elimination of consequences (natural, technological, etc.), associated, first of all, with the lack of a proper and clear understanding of the essence of planning public procurement and public demand for goods, works, services). Proper and carefully balanced procurement planning for all public needs not only ensures the immunity of the budget process for the current and subsequent periods, but also constitutes the basis for the prospective rational use of renewable and non-renewable resources, both internal (national) and external (foreign). This article has significant scientific and practical value. The study focuses on the key problem of public procurement in Russia-the lack of interaction between procurement planning and the budget process, pointing to the identified shortcomings of legal regulation that do not allow to quickly adapt to situational changes from outside. It is proposed to consider the introduction of strategic procurement planning for 5-10 years, which will not only determine the basis for financing public procurement from the budget, but also predict the revenues of the relevant budget, more accurately and correctly prioritize funding needs.The findings of the study allowed the authors to formulate proposals and recommendations. Consideration of the planning of public procurement, taking into account the budgetary process, will make it possible to develop recommendations in terms of adjusting certain norms of Law No. 44-FZ, which would allow the most efficient use of budget funds, both planned in advance and urgent purchases.Conclusions. A global crisis reveals the most pressing problems of governance of any state. The crisis obliges the government of any country to promptly analyze and rebuild the regulatory framework for effective financial, economic, social and political management. De-spite numerous reforms the budget process in the Russian Federation has retained significant bureaucratic costs that do not allow for rapid delivery of budget funds to each customer. The urgent need for rapid reallocation of budget funds for additional and priority purchases has shown the imperfection of the legal regulation of public procurement planning, which should be radically restructured. Since public procurement planning as an integral part of budget expenditure is not actually related to its revenues, such planning should be carried out based on the customer's needs for goods, works, and services for a longer period, which will allow a more meaningful and responsible approach to the issue of effective budget spending and overall resource consumption. Digital technologies in public procurement planning allow you to quickly compare all items of the plan with those planned and completed earlier in order to avoid duplication (unjustified repetition) of a similar purchase. Planning of budget purchases is not only an effective expenditure of budget funds, but also an efficient (lean) consumption of resources, including non-renewable ones.

Challenges in public procurement before, during, and after the COVID-19 crisis: Selected theses on a competency-based approach

This paper develops three theses on a competency-based approach during and after the COVID-19 crisis. These theses are based on the following empirical findings: case insights into the procurement of protective gear in Germany, the supplier shortage, which was a problem even before the crisis, and a quantitative view on the extended supply chain challenges in public procurement, including the decreasing number of bidders and an overly narrow view on supply chain partners. A key finding is that while the COVID-19 crisis has uncovered the problems of public procurement, the root causes lie more deeply in public procurement capabilities. As a result, this paper promotes extended public buyer competencies based on a European Framework, evidence-based decision-making in public procurement and the use of digital technologies to improve the security of supplies.

AUDIT QUALITY: THE IMPACT OF EXPERTISE, INDEPENDENCE AND ETHICS OF PROFESSIONAL ACCOUNTANT A CROSSSECTIONAL STUDY

This study aims to determine the effect of expertise, independence, and ethics on audit quality at the Inspectorate of West Java Province. The study in the initial review of this study found that the audit quality is shown in the opinion given by the examiner, including the opinion "Reasonable Without Exception" is a professional audit statement regarding the "fairness" of the financial statements, not a "guarantee" that no fraud was encountered or the possibility of the occurrence of fraud. Fraud in the future also on the problem of procurement of goods and services that cause indications of regional losses, management of accounts that are not following the provisions, causing potential fraud, management of fixed assets that are still problematic both in terms of administration and utilization and the problem is that the value is still found to be immaterial so that the Audit Board of the Republic of Indonesia gives an opinion "Reasonable Without Exception" (RWE). In the first stage of this research, namely, test the validity and reliability of all valid and reliable variables. In the second stage of conducting a correlation analysis for Expertise, Independence and Ethics on Audit Quality, showing a significant correlation, the relationship between Expertise and Audit Quality obtained a result of 0.813. Independent Relationship with Audit Quality obtained results of 0.751, and the result of Ethics Relationship with Audit Quality obtained results of 0.812. In the third stage, partial regression analysis for all variables proved to be significant, and it was found that the regression coefficient value of Expertise on Audit Quality obtained the result of 0.411. The independent regression coefficient value on Audit Quality is 0.235, and the Ethics regression coefficient on Audit Quality is 0.403. Likewise, in the fourth stage, simultaneous multiple regression analysis of expertise, independence, and ethics has a significant effect on Audit Quality with a total effect of 83.7%

Improving Transportation Procurement in the Humanitarian Sector: A Data‐driven Approach for Abnormally Low Bid Detection

Aid organizations choose their service providers through reverse auctions to decrease their operational costs, and many of them award the contracts to the lowest bidders, which often leads to aggressive bidding practices and compromised service quality. This is known as the abnormally low bids (ALBs) problem in public procurement. An ALB is defined as an unrealistically low bid submitted to win an auction, an amount at which the auctioned service cannot be provided reliably. The current literature on ALBs in the humanitarian sector is rather sparse. This study presents a data‐driven contract awarding framework that aims at eliminating ALBs so that service levels can be improved significantly. We conducted our analyses in the context of a developing country, where the transportation market data are almost non‐existent. We derived our research questions through an exploratory research performed in African headquarters of an International Humanitarian Organization located in Kenya, and we constructed our quantitative models based on interviews with humanitarian practitioners and representatives of the carriers. We collected historical transport rate data from numerous carriers that serve multiple shippers, and we developed a methodology that can objectively identify ALBs, based on lane and contract specifications that are derived from the market. Furthermore, we estimated the effect of ALBs on service levels and we compared different contract settings under simulated market conditions. The results of the simulation analyses demonstrate that mitigating ALBs would improve the service levels significantly more than the commonly used fuel surcharge clauses in contracts.

Model Pengadaan CPNS Masa Bencana Nasional Non Alam

This article tries to analyze the problems of business processes procurement of Candidate of Civil Servant (CPNS) during the Covid-19 pandemic. The formulation of research problems is that business process services of CPNS at the Ministry of Marine Affairs and Fisheries are less effective during pandemics. Problems found in the field include the inefficiency of time in business processes of recruitment and selection subprocesses. This study uses qualitative descriptive approach with empirical study method at the Ministry of Marine Affairs and Fisheries. Adoption of technology utilization, recruitment and selection procedures based on the needs of priority positions, business process of selection time is not simultaneous, intensive coordination business process between implementing agencies and responsible agencies can be a model of business processes procurement CPNS non-natural national disaster period

A multistage stochastic lot-sizing problem with cancellation and postponement under uncertain demands

A multistage stochastic capacitated discrete procurement problem with lead times, cancellation and postponement is addressed. The problem determines the procurement of a product under uncertain demand at minimal expected cost during a time horizon. The supply of the product is made through the purchase of optional distinguishable orders of fixed size with delivery time. Due to the unveiling of uncertainty over time it is possible to make cancellation and postponement corrective decisions on order procurement. These decisions involve costs and times of implementation. A model of the problem is formulated as an extension of a discrete capacitated lot-sizing problem under uncertain demand and lead times through a multi-stage stochastic mixed-integer linear optimization approach. Valid inequalities are generated, based on a conventional inequalities approach, to tighten the model formulation. Experiments are performed for several problem instances with different uncertainty information structure. Their results allow to conclude that the incorporation of a subset of the generated inequalities favor the model solution.

Features of legal regulation and problems of procurement in modern Russia

Features of legal regulation and problems of procurement in modern Russia

A note on robust procurement contracts

We study a procurement problem where both a principal and an agent share uncertainty regarding the cost at the outset. After being offered a contract, the agent privately observes an informative signal of the marginal cost. The principal neither knows the signal distribution nor has a prior belief about possible signal distributions. We characterize a procurement contract that is robust to the principal’s uncertainty about the agent’s information structure. The principal’s worst distribution either fully reveals to the agent that the cost is low or makes him just pessimistic enough to reject the contract. In the former case, the agent accepts the contract and produces less than what he would have without the signal.

The joint procurement model and algorithm for small and medium enterprises

Due to the disadvantages of economic scale and industry status, the purchase order of a small and medium enterprise (SME) cannot often reach the minimum order quantity set by a strong supplier, and it is difficult for an SME to make vertical purchase cooperation with strong suppliers. Therefore, a joint procurement model is proposed in the horizontal cooperation among SMEs. The model considers multiple objective and multiple realistic constraints. To solve the proposed multi-objective model, the improved genetic algorithm is designed to determine the optimal purchased quantity in SMEs. Finally, a numerical experiment is conducted to validate the feasibility of the proposed model and algorithm. As the results illustrated, the joint procurement model and the improved genetic algorithm are efficient for SMEs under the weak procurement environment. The gaps among the optimal Pareto solutions are relatively small in contrast to the initial solution. Besides, a sensitivity analysis is also performed to prove that the algorithm is effectively solving the real-world joint procurement problem.

Day-ahead optimal reactive power ancillary service procurement under dynamic multi-objective framework in wind integrated deregulated power system

This paper deals with the investigation of a day-ahead reactive power ancillary service procurement problem to minimize cost and voltage deviation under wind power generation uncertainties in a pool-based deregulated system. This reactive power procurement problem is formulated as a dynamic bi-objective optimization problem and is solved using a developed Pareto-based multi-objective artificial electric field algorithm (MO-AEFA). The developed MO-AEFA utilizes nondominated sorting principle and an external archive to store Pareto optimal solutions. Sign and reorder mutation operators are used to avoid trapping in local optima and enhance population diversity. The numerical results obtained from MO-AEFA are compared with other algorithms to validate the efficacy of proposed approach. The optimization algorithm utilizes a fast Newton power flow employing sparse matrix techniques to diminish computational burden. The capacitor switching is decided with consideration of marginal prices. The proposed methodology has been tested on modified IEEE 30-bus and IEEE 118-bus test systems. The performance of both test systems is analyzed for two studies namely, VAr dispatch without wind integration, and VAr dispatch under wind integration. The analysis with wind integration is further investigated for different wind penetration levels. The convergence characteristic of Pareto solutions is measured through statistical distance and diversity metrics.

An Immune Evolutionary Algorithm with Punishment Mechanism for Public Procurement Expert Selection

In the past decade, fairness in public procurement expert selection has attracted research attention. This paper proposes an immune evolutionary algorithm (IEA) with a punishment mechanism for expert selection, in which an ordered weighted aggregation (OWA) operator is applied to adjust the score weights to reduce expert evaluation committee abuse discretion and Grubbs method is employed to test the outliers. The results from a real-life public procurement case demonstrated that the abnormal experts could be effectively suppressed during the selection process and that the proposed method performed better than either the random selection algorithm or IEA, neither of which considers a punishment mechanism. Therefore, the proposed method, which applied the abnormal data detected in the scoring process to the expert selection process with a punishment mechanism, was proven to be effective in solving public procurement problems that may have doubtful or abnormal experts.

THE ECONOMICS OF GOAT PRODUCTION IN SOUTHEASTERN NIGERIA: IMPLICATIONS FOR THE FUTURE

The West African Dwarf goat is to Southeastern Nigeria and is raised by many families under small-scale and intensive management systems. Results showed that the average households kept 6 goats, but that expansion was limited by labour and feed procurement problems. Both males females owned goats but males dominated goat marketing. Women have recently become goat meat retailer. Although the prospects for large-scale goat production appeared bleak, those for women producers integrating vertically forward into marketing appeared favourable.

ОСОБЛИВОСТІ ПУБЛІЧНИХ ЗАКУПІВЕЛЬ В УКРАЇНІ В КОНТЕКСТІ ЄВРОІНТЕГРАЦІЇ

The article examines the features of public procurement in Ukraine and their compliance with EU standards, the factors that affect their effectiveness. The problems of tender purchases that exist in Ukraine during the process are considered. The changes that took place in the implementation of procurement after the introduction in 2020 of a new version of the Law of Ukraine "On Public Procurement" are assessed. A detailed description of Poland's experience in public procurement is provided. The number and types of contracts concluded during procurement are analyzed. The main existing shortcomings in the field of public procurement, ways to solve and improve them are considered. The key EU rules on public procurement to be used in Ukraine have been identified. It was established that it is important to bring the mechanism of public procurement in Ukraine closer to the EU requirements, which will allow our country to raise the issue of joining this organization in the future. The purpose of the article is to analyze the features and problems of public procurement in Ukraine and find ways to overcome them. The main task of reforming the sphere of public finances in our country is to introduce an effective mechanism for the use of public procurement in accordance with the principles and approaches applied by EU countries, which should ensure financial efficiency and transparency of the procurement procedure. Public procurement is one of the tools to regulate supply and demand for specific publications. To increase the transparency and efficiency of use in our country, it is necessary to study the experience of EU member states, especially Poland. Analysis of the experience of public procurement in the EU will be able to identify effective approaches to their implementation in Ukraine, thanks to the main tasks of public procurement reform in our country will introduce an effective system in accordance with the principles and approaches used by EU countries. It is necessary to investigate the change that has taken place in public procurement after the introduction in 2020 of a new version of the Law of Ukraine "On Public Procurement", there are both positive and negative aspects that are due to the existence of corruption schemes in tenders.

Izbor protivoklopnih vođenih raketa modelom višekriterijumskog odlučivanja

Introduction: Anti Tank Ground Missiles (ATGMs) are one of the most efficient weapon systems to counter armored and mechanized units. Procurement of these weapons is imperative for armed forces of any country. Adequate evaluation and choice of an efficient ATGM system is a very important factor which affects operational capabilities of armed forces. The purpose of this paper is to present that multi criteria methods can be a useful tool for optimal procurement of ATGMs for armed forces. Methods: The implementation of the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) and the MABAC (Multi Attributive Border Approximation Area Comparison) multi criteria methods will be proposed for decision makers to solve the problem of ATGM procurement. In this paper, four models of ATGMs will be proposed as possible solutions. These ATGMs will be presented as alternatives A1, A2, A3 and A4. Results: The implementation of the methods in this paper has led to the conclusion that the alternative A2 has the highest value and therefore the best course of action for decision makers is to chose procurement of this model of ATGMs. Conclusion: The conclusion is that the mathematical models of multi-criteria decision making presented in this paper unequivocally point to the alternative with the best characteristics, thus presenting extremely useful tools for decision makers.

Actual problems and directions of optimization of public procurement in Ukraine

The purpose of the article is to study the transformation processes in the field of public procurement in Ukraine in the context of providing opportunities for micro, small and medium-sized enterprises to access productive participation in public procurement. Methodology of research. The solution of the tasks was carried out using general scientific and specific research methods: analysis and synthesis, systematization and generalization, dialectical approach. Findings. The article examines the transformation processes in the field of public procurement in Ukraine in the context of providing opportunities for micro, small and medium-sized enterprises to access productive participation in public procurement. It was determined that the volume of public procurement in Ukraine is constantly increasing and, according to the results of 2019, their value amounted to UAH 1,238 billion, which is 31.15 % of the country's GDP. Despite this, the sphere of public procurement in Ukraine is still not developed, the opportunity for micro, small and medium-sized enterprises to access productive participation in public procurement is not ensured. According to the results of 2019, the share of competitive purchases in their total amount was only 18.18 %. Based on the results of the study, a number of proposals were formulated in order to reduce abuses in the field of public procurement and ensure access for micro, small and medium-sized businesses to productive participation in public procurement, including: the establishment of clear qualification requirements for specialists in the field of public procurement and, possibly, the introduction of a certification system specialists; strengthening control over public procurement by regulatory authorities and civil society; strengthening the responsibility of participants in the public procurement process; ensuring the possibility of a complete electronic document flow in the field of public procurement; use of positive international practices in the field of public procurement. Practical value. The main theoretical provisions of the article can be used in the process of reforming the sphere of public procurement in Ukraine Keywords: public procurement, public procurement reform, electronic bidding system, ProZorro. REFERENCES 1. Belinska, H. V. (2016). Aktualni problemy derzhavnykh zakupivel v Ukraini v umovakh reformuvannia [Actual problems of public procurement in Ukraine in terms of reform]. Visnyk Kremenchutskoho natsionalnoho universytetu imeni Mykhaila Ostrohradskoho – Bulletin of the Mikhail Ostogradsky Kremenchug National University, 5, 125–131. Retrieved from http://nbuv.gov.ua/ UJRN/Vkdpu_2016_5_20. (accessed 07 September 2020) [in Ukrainian]. 2. Etapy provedennia vidkrytykh torhiv [Stages of open bidding]. Retrieved from https://infobox.prozorro.org/articles/proceduravidkriti-torgi. (accessed 07 September 2020) [in Ukrainian]. 3. Zakon Ukrainy “Pro publichni zakupivli”: vid 23.01.2021 № 922-VIII. [Law of Ukraine “On public procurement” from January 23, 2021 № 922-VIII]. Retrieved from https://zakon.rada.gov.ua/laws/show/922-19#Text. (accessed 07 September 2020) [in Ukrainian]. 4. Zakon Ukrainy “Pro elektronnu komertsiiu”: vid 19.04.2020 № 675-VIII [Law of Ukraine “On electronic commerce” from April 19, 2020 № 675-VIII]. Retrieved from https://zakon.rada.gov.ua/laws/show/675-19#Text (accessed 07 September 2020) [in Ukrainian]. 5. Publichnyi modul analityky BI [Public module of ВІ analytics]. Retrieved from https://dozorro.org/tools/public-bi (accessed 07 September 2020) [in Ukrainian]. 6. Sait Systema elektronnykh zakupivel ProZorro [Site ProZorro e-procurement system]. Retrieved from https://prozorro.gov.ua/ua/monitoryng/ (accessed 07 September 2020) [in Ukrainian]. 7. Chernukha, D. V. (2018). Problemy funktsionuvannia ta perspektyvy rozvytku systemy derzhavnykh zakupivel ProZorro [Problems of functioning and prospects of development of the public procurement system ProZorro]. Molodyi vchenyi – Young scientist, 11 (2), 1231–1234. Retrieved from http://nbuv.gov.ua/UJRN/molv_2018_11(2)__169 (accessed 07 September 2020) [in Ukrainian]. Published: 2021-05-27

Research on the Selection of Maintenance Equipment Purchasing Mode in Equipment Distribution Process

Maintenance equipment is an important material basis of equipment distribution, and the procurement of maintenance equipment is a key link in the implementation of equipment distribution, which plays a very important role in ensuring the integrity rate of equipment. Compared with the traditional purchase of weapons and equipment, the purchase of equipment maintenance equipment has its own unique situation. In the process of choosing purchasing methods, there is a lack of specific theoretical guidance. Aiming at the practical problems of maintenance equipment procurement in current equipment distribution, this paper focuses on the characteristics of equipment maintenance equipment procurement, combs the applicability, advantages and disadvantages of various procurement methods, and puts forward some suggestions for reference.

A multiobjective integrated procurement, production, and distribution problem of supply chain network under fuzziness

A multiobjective integrated procurement, production, and distribution problem of supply chain network under fuzziness