Procurement Methods Research Articles

Detecting Indicators of Horizontal Collusion in Public Procurement with Machine Learning Methods

Improvement of procurement procedures and their digitization help prevent and identify cartels, but at the same time lead to the emergence of new anticompetitive schemes. In this paper we focus on electronic auctions, which have become the main method of public procurement in Russia in recent years. As e-auctions provide access to many big government orders; the incentives for bidders to join anti-competitive agreements are increased. Therefore, the development of methods to detect bid rigging at electronic auctions is of high practical importance. The aim of this work was to develop a method for detecting signs of horizontal collusion at an auction. We use machine learning methods to train classifiers that predict the presence or absence of cartel in electronic auctions, depending on the distribution of bidders, the time of submission of applications, the duration of the auction and the number of participants. Variables for the model were selected on the basis of distribution plots built for sample of cartels and random sample. The study is based on data from public procurement Web portal and the information about bid rigging from cases of the Federal Antimonopoly Service. The results showed that the Random forest model most accurately predicts the detection of the cartels on electronic auctions. The accuracy of the prediction is 84%, and the recall and precision of the model are 83 and 87%, respectively. The most significant variables for the classification are the level of price reduction, the difference in the time of application filing of participants and the value of the maximum starting price of contract.

Holistic Performance Evaluation of Highway Design-Build Projects

Many state transportation agencies (STAs) have adopted alternative contracting methods, including design-build (DB) contracting, to accelerate construction. Although DB has become increasingly common in recent years, very little definitive information is available about its performance with regards to key project performance indicators for highway rehabilitation projects. The lack of holistic quantitative performance assessments may result in STAs being misled when attempting to determine the best procurement methods and techniques for significant projects. This study fills this knowledge gap by using a rich dataset to evaluate the performance of DB contracting. A series of quantitative analyses were conducted to assess the likely effects of DB contracts on key project performance measures such as schedule, cost, and change orders. The results reveal that DB facilitates on-time project completion and results in fewer contract change orders during construction. No strong evidence, which indicates that DB contracts lead to greater cost increases over the traditional method, was found. These findings provide historical data-driven performance results for DB contracting that STAs can reference when evaluating competing contracting methods and techniques for high-impact projects.

Overcoming challenges of early contractor involvement in local government projects

Traditional procurement methods are prone to developing adversarial relationships. Early Contractor Involvement (ECI) is a relationship-based procurement model that allows the client, the designer, and the contractor to work collaboratively, which results in improved performance. Previous ECI research has focused on its implementation in private projects and public projects managed by the Federal and State Governments. This research investigates the implementation of ECI in Local Government projects in Sydney, Australia. Interviews revealed that the main challenges are probity, developing principle project requirements document, running ECI workshops, changing the attitudes of project participants, and the time-consuming nature of ECI process. When these challenges are overcome, Local Government projects can reap the benefits of ECI, such as collaborative work relationships, better constructability, innovation, cost certainty, improved risk management, and better value for money. It is concluded that ECI is a suitable procurement model to improve project performance in the Local Government context.

Pandemi As A Reason Force Majeure In Contract Procurement Of Goods / Government Services

Procurement of goods and services is an effort to obtain the desired goods and services by doing it on the basis of logical and systematic thinking ( the system of thought ), following applicable norms and ethics, based on standard procurement methods and processes. However, when a pandemic event occurs, many activities of every person and institution related to the procurement of goods / services become impeded. The occurrence of the Covid-19 pandemic required the state to prioritize the safety of the population, and therefore it was necessary to provide sufficient budget. This is what causes a shift which then makes the budget for procurement of goods / services significantly reduced, or even no more. Presence of Presidential Decree No. 12 of 2020concerning the Determination of Non-Disaster Spread of Corona Virus Disease 2019 (Covid-19) was not intended to make Covid-19 as a direct reason to cancel the contract. This becomes the reason and entrance for renegotiation with the reason that force majeure can certainly be based on Pasal 1244, Pasal 1245, and especially Pasal 1338 of the Civil Code . The legal effect of the presence of Presidential Decree on the Establishment of non-natural disasters Spreading Corona Virus Disease 2019 (Covid-19) against the contract goods / services procurement of government is s epanjang condition of force majeure are met , the KDP has a legitimate basis in stopping the process of selection and contracting process based on propriety and justice and the principle of budget availability. Keywords: Force Majeure, Procurement Contract.

Attractive Factors of Public Private Partnership (PPP) for Road Projects in Ethiopia

The private sector has long been involved in delivering public sector projects in Ethiopia but its role limited as consultant and contractor for the government. Over recent years, the interest in adopting Public Private Partnership (PPP) has increased internationally. Many research outcomes have presented positive reasons for the governments and the private sector to welcome this form of long term contract arrangement, rather than continue involving in the traditional procurement methods. This paper aims to explore the attractive factors for PPP implementation in the Ethiopian road sector. A questionnaire survey was conducted in Ethiopia and survey respondents were invited to rate their perceptions on the importance of seventeen different attractive factors identified. The results show that the five important attractive factors for pursuing PPP in the Ethiopian road sector were: ‘solve the problem of public sector budget restraint’, ‘facilitate creative and innovative approaches’, ‘save time in delivering the project’, ‘improve maintainability’ and ‘enhance government integrated solution capacity’. The research outputs contribute to the limited knowledge on PPP practices in Ethiopia by providing empirical evidence on the conditions that are attractive to the introduction of PPP in the road sector. Keywords: Ethiopia, Procurement, Public sector, Private sector, Partnerships, Road infrastructure, Attractive factors DOI : 10.7176/JESD/10-19-07 Publication date :October 31 st 2019

Инновационное развитие контрактной системы: переход к умным закупкам

Digital transformation affects almost all areas of government management, including public procurement. World experience shows that the procurement sector acts as a driver of digital transformation of corporations. According to the authors, digitalization of public procurement should not be an end in itself, a balanced approach is needed to make the contract system more open, accountable to citizens, convenient for business, cost-effective and anti-corruption. Currently, there have been significant changes in the public procurement system in the direction of its electronicization, electronic platforms, electronic stores for small purchases have appeared, all competitive procurement methods have switched to electronic format. The next stage in the development of the contract system is digitalization due to the transition to smart technologies, including blockchain, smart contracts, cloud services, artificial intelligence, bigdata. The purpose of this article is to show how digital technologies, including those successfully used in corporate procurement, will help move to state “procurement 4.0” and lead to the formation of an intellectual contract system, including eliminating the influence of the subjective “human” factor as much as possible, by transferring the collateral function making managerial decisions to artificial intelligence.

Success Factors of Design-Build Public Sector Projects in Malaysia

Various procurement methods are employed in the construction industry, with each having varying success rates. The popularity of design and build (D-B) method has been increasing worldwide because its distinctive features of integrating design and construction have successfully addressed the problems inherent in the traditional design-bid-build (D-B-B) method. Previous research efforts in Malaysia have been focused on establishing a D-B strategy, including its challenges and risks and defining a broader scope for implementing D-B in public projects. However, not many empirical studies have identified the D-B success factors in Malaysia’s construction industry. This paper aims to determine the main factors attributing to the successful application of the D-B method for public projects in Malaysia’s construction industry. Specifically, this paper answers the main research question of “What are the success factors of the D-B project delivery method in Malaysian public-sector projects?”. To achieve that objective, this study involves interviewing industry practitioners that have direct hands-on experience in managing D-B public sector projects in Malaysia. The interview data are analyzed to identify the D-B success factors in construction projects. The findings suggest that the underlying factors for successful D-B public project include client capabilities, competency of the construction leader, competency of the consultant team, organizational behavior, and effective project management system. The success factors in each underlying categories are discussed in the paper. This paper contributes a better understanding of the D-B project success factors in Malaysia’s construction industry.

미국의 공공조달법제와 조달방식의 발전과 GAO의 감사개혁방향

미국 연방정부의 공공조달법제는 독립전쟁 등 각종 전쟁을 수행하면서 원활한 전쟁물자 공급을 위해 급하게 마련되어서 많은 시행착오를 거치면서 발전되었으며 연방의회의 형식적 법률뿐만 아니라 행정입법과 판례에 의해서 오늘날의 형태를 갖추게 되었다. 미국의 연방조달법제에서 실무적으로는 1600면이 넘는 연방조달규칙이 핵심을 이루는데, 연방조달규칙상의 계약체결방식은 일반경쟁입찰과 경쟁적 협상으로 양분되다가 최근에는 불확정이행 및 불확정수량계약이 연방조달계약의 주요계약체결방식으로 대두되고 있다. 이런 공공조달방식의 변화는 기술발전과 시장의 변화 그리고 보다 효율적으로 물품을 조달하고 공적 자금으로 보다 나은 가치를 창조하고자 하는 욕구가 반영된 것이다. 다만, 입찰공고를 모두 충족시키고 기술적 우위가 비교적 적으며 이미 상세한 사양이 결정된 건설공사에서는 미국도 여전히 일반경쟁입찰방식이 사용된다는 점도 시사점이 있다. 경쟁협상방식에서 계약담당자에게 우리와 비교하여 많은 재량권이 존재하여 가격은 최저가가 아니더라도 기술적으로 진보한 업체를 선정할 수 있으며 입찰공고에 적시된 사항 이외의 것도 고려할 수 있도록 하는 부분은 공공조달시장이 투명화되고 이의절차가 잘 갖추어져 있으며 일반시민의 감시가 이루진다면 앞으로 적극적으로 도입을 고려해 볼 수 있는 부분으로 판단된다. 일반적으로 보통법의 전통으로 인하여 공법과 사법이 미분화되어 있다고 알려진 미국이지만, 공공조달법제에서는 우리보다 더 공법적 수정이 가미된 것으로 평가될 수 있다. 예를 들면, 편의적 계약해지제도를 도입하여 보통법상의 일반적 계약의 구속력을 수정한 것들도 공법적 관점의 도입으로 평가된다. 조달법체계를 개선하고 감사를 통해서 개선점을 찾으려는 노력도 행정현실과 사경제부분의 청렴성과 시장경쟁성에 의존하기 때문에 법제의 단순한 이식이 아니라 정확한 현실진단과 냉철한 자기반성의 기반위에서 기존의 실수와 문제점을 개선한다는 뚜렷한 목표의식하에서 이루어져야 할 것이며 그 개선과 목표설정은 국민의 참여와 감시가 전제되어야 할 것이다.

Public Private Partnership and fiscal illusion: A systematic review

Public-Private Partnerships (PPPs) are mostly presented as a means to introduce efficient procurement methods and better value for money to taxpayers. However, the complexity of the PPP mechanism, their lack of transparency, accounting rules and implicit liabilities make it often impossible to perceive the amount of public expenditure involved and the long-run impact on taxpayers, providing room for fiscal illusion, i.e., the illusion that PPPs are much less expensive than traditional public investments. This psaper, thanks to a systematic review of the literature on the EU countries experience, tries to unveil the sources of this illusion by looking at the reasons behind the PPPs’ choice, their real costs, and the sources of fiscal risks. The literature suggests that PPPs are more costly than public funding, especially when contingent liabilities are not taken into account, and are employed as mechanisms to circumvent budgetary restrictions and to spend off-balance. The paper concludes that the public sector should share more risks with private sectors by reducing the amount of guarantees, and should prevent governments from operating through a sleight of hand that deflects attention away from off-balance financing, by applying a neutral fiscal recording system.

Learning from built projects – sources of post occupancy feedback used by architects in Victoria, Australia

ABSTRACT How do architects know whether their design was successful and if the building performs as intended? This is important to improve the standard of the built fabric, to show the value in good design, for the architect to learn whether the spaces achieved the desired aims, and to check sustainability performance. This research investigates the types of feedback received and studied by architects in Victoria to learn from their own built works. A literature search identified possible informal and formal feedback methods and emerging feedback methods. A general pilot study was conducted by interviewing six senior architects in practice regarding their practices’ feedback sources and methods of disseminating that knowledge. Additional feedback sources identified included the defects liability period, practice specific commissioning procedures, photography visits, and architectural services interviews. Knowledge dissemination methods included feedback reported directly to design teams, management & staff meetings, staff email, formal presentations, practice intranet software and updates to practice quality assurance procedures. Concerns raised by practitioners included procurement methods that actively discourage post occupancy analysis (POA), client unwillingness to pay for POA, and impacts on building performance of client or builder cost-based decisions.

A Novel Capacity Market Model With Energy Storage

Electricity jurisdictions procure generation capacity requirements competitively which maintains investment flows into the electricity system infrastructure. The capacity market auction is one of such competitive capacity procurement methods. It is challenging to consider energy storage (ES) capacity offers in capacity markets due to complex capacity contribution characteristics and lack of explicit mechanisms to integrate them. However, ES capacity can be used to manage the system peak demand. ES can substitute for peaker plants, especially if the demand curve is kurtosis. This paper proposes novel ES capacity contribution formulas and a comprehensive capacity auction model which is designed to consider capacity offers including energy-limited technologies such as ES. After all offers are converted to unforced capacity (UCAP), their energy limitations do not affect bid selection in the market. The proposed novel ES UCAP computation formulas consider power capacity, energy capacity and operational attributes. This paper also presents the results of a case study with three capacity supply offers and a case study based on actual Ontario system data. A detailed sensitivity analysis is also included in the paper to show the validity of the proposed ES UCAP formulas in the auction model. The proposed formulas provide significant benefits in successfully procuring ES capacity offers.

Comparative Analysis of Direct Labour and Contracting System of Project Procurement

This study examines the performance of two project procurement methods commonly used in project construction, the direct labour and contracting system. Using cost, time and quality as assessment criteria, the work seek to determine possible advantage of one method over the other. Quasi-experimental design and questionnaire were combined to carry this study. Respondents was mainly officers and building contractors, key players in project procurement. Results obtained in this work showed that there was no significant difference between the two methods in terms of cost overrun, though overall cost was higher for the direct labour method. It also revealed a significant difference between time overrun for the two methods as direct method took longer time. The study concluded by emphasising the need for training, openness and empowerment. It also recommended the need for all establishments to adopt participatory project management through direct labour. Key Words : Direct Labour, Contract, Procurement, Time, Cost, Cost overrun, Time overrun DOI : 10.7176/CER/11-8-07 Publication date :September 30 th 2019

Public–private partnership governance mechanism analysis using grounded theory

Governance mechanisms of public–private partnership (PPP) projects can alleviate opportunism behaviours and indirectly reduce transaction costs from the perspective of transaction cost economics. This paper analyses 40 PPP projects in 14 provinces and municipalities across China using the grounded theory and finds that the key attributes for contractual governance are risk sharing, procurement methods, rights allocation and financing mechanisms. The core mechanisms for relational governance are trust in competence, reputation, institutional trust and commitment-related trust. Applying this system in project governance helps enhance project performance.

PENGADAAN KOLEKSI BAHAN PUSTAKA TERCETAK UPT PERPUSTAKAAN UNIVERSITAS JANABADRA YOGYAKARTA

<p>This study aims to explain the implementation of procurement collection library materials printed on central library Janabadra Yogyakarta, this study used qualitative methods by data collection in the form of observation and interview. Based on procurement activities conducted that the library Janabadra Yogyakarta apply method 2 that is 1. Procurement through the purchase with the publisher a year 2 times. 2 procurement of library materials through gifts / donations from internal and external parties. In conducting library procurement activities in collaboration with lecturers and students in fulfilling the collection in the library that remains based on the development of science and the applicable syllabus. Recommendations from the authors to the library make written policy as the basis of procurement activities and procurement methods are added so that the available collection more diverse.</p><p>Keywords : Acquition, Janabadra Library, Librarian</p>

PENGADAAN KOLEKSI BAHAN PUSTAKA DI PERPUSTAKAAN SEKOLAH TINGGI TEKNOLOGI KEDIRGANTARAAN YOGYAKARTA

<p>This paper discusses the procurement collection in the Library of Yogyakarta Higher Technology College. This paper describes the description of planning activities and the method of procuring a collection of library materials in the Library STTKD Yogyakarta. This research was conducted by Qualitafif method with unstructured interview. The<br />conclusion of this paper is to try the library materials that have’nt been owned by the library STTKD and add materials that have been owned by the Library STTKD with the number of somewhat small, as for the planning step is the Inventory of library materials, library, setting preference. In addition, several methods of procurement of library materials are done in the following way: buyer, gift, exchange, donations, cooperation, endowments and self-published.</p><p>Keywords: collection of library materials, procurement, planning, library STTKD</p>

Performance-Based Road Contracts in Zambia

Public infrastructure procurement involves significant incentive problems because contracts are often incomplete. Output- and performance-based road contract (OPRC) is an innovative contractual scheme that has been developed in the road sector. Unlike traditional input-based procurement methods, contractors can freely design, invest in, and maintain roads to deliver an agreed level of road functionality, which helps to ensure the sustainability of road maintenance. Using data from Zambia, this paper shows that major reconstruction works under OPRC arrangements are effective at increasing agricultural production. In particular, small-scale farmers who currently use only a few advanced inputs, can benefit from improved connectivity from improved roads. The results also indicate the possibility of improved accessibility, which allows new economic opportunities for farmers who currently do not participate in market transactions.

Efficiency of Raw Material Steel Inventories in Improving Supply Chain Performance at Honda Trading Indonesia

The production and number of processed automotive industries have slightly increased; as a result, the companies must compete to maximize their profits by conducting their efficient production process. PT. Honda Trading Indonesia is belong to Honda Motor group company, especially in support import material such as Raw Material and Parts that has implemented supply chain management. It is necessary for the company to take measurements of its performance and efficiency for the entire supply chain such as procurement of raw materials. The purposes of this study were to analyze the performance of the company's supply chain and determine the most efficient method of procurement for its raw materials as well as and to provide recommendations for the company to improve its performance of entire supply chain. This study used SCOR in analyzing the performance of supply chain and EOQ and POQ method to be compared with the method that the company uses to determine which method of procurement for raw materials is the most efficient one. The result showed that based on the matrix, the company's performance is unfavorable when it was compared to the benchmark performance of inventory days of supply.

English

The State Department of Housing in Kenya puts the housing demand in the country at 250,000 housing units per year, while actual supply is 50,000 units p.a. This demand for housing has accumulated to 1.85 million units as at 2018. This has led to the growing proliferation of slums and informal settlements, with the Department showing that there are over 500 such settlements. This state of affairs has been partly attributed to under-investment in low cost housing by both public and private entities. Stakeholders have therefore recommended the application of Public Private Partnerships (PPPs), which increases the role of the private entities in housing production beyond the traditional procurement method. Under PPPs, the public sector cedes the duty of actual housing development and concentrates on creating an enabling environment for the private party to effectively and efficiently perform the function of shelter provision. In addition to creating an enabling environment, the governments undertake monitoring, evaluation, creation of standards and enforcement. This study utilized secondary review of the literature on the evolution on PPPs and focused group discussion with selected officials at the State Department for Housing in Kenya. The purpose was to juxtapose the secondary literature review on how the concept of PPPs has been appreciated as an alternative to the traditional procurement methods.  It was found out that private participation in infrastructure development has evolved over time, assuming many forms like: contracting out, privatization and lately PPPs. Kenya has been applying PPPs since the liberalization of the economy in 1994, though there are were earlier applications of the concept. The country has used PPPs in the hard infrastructure sectors like energy and transport, but little success has been recorded in housing development. It was concluded that PPPs are applicable in down market urban housing in Kenya since the concept has been successfully applied in other areas. Through PPPs, a sector like down market urban housing can access more capital resources, technology, innovation, efficiency and effectiveness. The implication of this finding is that more down market urban housing can be developed to address the huge gap witnessed in Kenya.   Key words: Public private partnerships, public sector/government, private sector/private parties, down market urban housing, low income urban households, evolution.

DEVELOPMENT OF MODERN MECHANISM OF FORMATION OF GOVERNMENT PROCUREMENT FOR THE BENEFIT OF DEVELOPMENT OF EKOORIENTED PROCESSES

Procurement is a necessary component of the activities of each organization. Procurement should be holistic, reflect a systematic process, the purpose of which is with minimal effort and money in a timely manner to get all the goods, works and services, which are necessary for the organization. The article reveals the relevance and importance of the environmental component of tenders, analyzes the methods of procurement, provides recommendations in terms of non-price evaluation criteria, and offers options for the implementation of the environmental concept in Russia.

Effect of Devolution on the Performance of Human Resource Function in Health Sector in Kenya: The Case of Garissa County

The declaration of a new constitution of Kenya on 31st August 2010 successfully made two levels of government; the national and county governments. Establishment of health services is one of the tasks that were devolved to the county. Devolution of health functions was meant to enhance access to more-fair and top-notch health services to the Kenyan citizens. This study sought to analyze the effect of devolution on human resource performance in healthcare sector in Kenya with special focus on Garissa County. The study specific objectives included to; examine how devolution has affected recruitment of health care staff in Garissa County; to analyze how devolution has affected training of health care staff in Garissa County. The study was guided by new public management theory. The study employed a descriptive research design to examine the effect of devolution on human resource performance in healthcare sector in Kenya. The target population was the healthcare workers with management portfolios and the sample population was 184 respondents which were arrived at using stratified sampling method. Both primary and secondary data were accessed. A questionnaire was used to collect primary data. Descriptive proportions of the respondents and their cadres were derived. Qualitative data was analyzed thematically, while quantitative data was analyzed using descriptive statistics and regression analysis. The findings were presented using tables and charts. The study found out that devolution has affected human resource performance in healthcare sector in Garissa County. The study established that lack of proper methods of recruitment of health care staff; lack of training of health care staff and application of ineffective methods of procurement of medical facilities hindered the performance of health care staff in the County. The study drew conclusion that the major effect of devolution on human resource performance in healthcare sector in Kenya; a case of Garissa County includes; recruitment of health care staff; training of health care staff and procurement of medical facilities. The study recommended that the County government should employ effective employee recruitment methods by hiring staff with technical expertise in health services delivery; the County government should also allocate and efficiently distribute enough financial resources to fund the recruitment exercise; the recruited staff should be better remunerated in order to improve their level of motivation and job satisfaction. The study further recommended that the County government should implement an effective and continuous employee training and development programmes on health care services delivery in the County. The County government should source and hire qualified doctors; employ enough and qualified nurses; hire enough and qualified support staff and give emphasis on hiring very experienced medical staff as lead trainers on health care services delivery in the County. The County government should adhere to all public procurement regulations in Kenya like public procurement and disposal act. The procurement methods should ensure that there is availability of medical facilities; there is a sufficient medical facility and there is high reliability of procured medical facilities in all regions in the County.