Procurement Selection Research Articles

Creating an Efficient Public–Private Partnership Bundle: An Empirical Study

Public–Private Partnerships have been implemented globally as a key procurement strategy for addressing the issue of funding gaps amidst the immense pressure to deliver new major infrastructure projects. However, in current practice, procurement selection is applied to the entire bundle of project activities. This often leads to unduly large bundles of externalized project activities that create unduly large PPP contracts and attempt to transfer too much risk. To address this gap, this paper presents the development and testing of an implementable model that embodies a range of microeconomic theories—namely, transaction cost and resource-based theories—and property rights theory. This paper presents the first empirical testing of this model based on two road and two health projects, using competition as an independent measure of the validity of the recommended procurement strategy. The results provide compelling evidence that a rigorous application of the model will enable a substantial improvement of existing procurement approaches, such as identifying the most suitable bundle to be procured using a PPP approach.

Design of Library Collection Procurement System in Bali

The process of library collection development encompasses several crucial tasks, including identification, selection, acquisition, processing, and distribution of collections to the public. This study endeavors to develop a library collection procurement application focusing on two primary functionalities: selection and procurement. The system accommodates stakeholders, including publishers, librarian profiles, system masters, and other users, while adhering to specific user and system requirements. The design methodology employed in this study leverages the Unified Modeling Language (UML). The development process follows the waterfall method, encompassing stages such as requirements analysis, design, implementation, verification, and maintenance. The resulting application features an intuitive interface for collection procurement, incorporating essential components such as login mechanisms, a comprehensive book collection database, catalog data management, procurement selection tools, recommendation algorithms, catalog selection options, and access to selected catalog data. Employing the CodeIgniter (CI) framework, the system facilitates data filtration and selection processes based on publication year, price, and language criteria. Rigorous system testing, conducted through black box testing methods, confirms the functionality and reliability of the application. This research contributes to addressing the needs of libraries lacking robust collection procurement systems, offering a sophisticated solution to streamline and automate traditionally manual processes.

Procurement Planning Technique: A Strategy for Sustaining Production Capacity of Bread-Baking Firms in Port Harcourt, Rivers State, Nigeria

The small and medium-scale industry is considered to be an informal section in the Port Harcourt Rivers State, Nigeria. However, the volume of business activity carried out in the sector was perceived to be capable of opening and increasing the per capita income of the city Port Harcourt if their mode of operation is mainstreamed to size procurement of materials geared towards increasing productivity amongst bread baking firms. Thus, the general aim was to evaluate how procurement technique enhances production capacity among firms in the bread-baking industry in Port Harcourt. The study was necessitated as a result of the inability of firms to strategically increase production capacity, given the apparent local means for material procurement in practice. A correlation design was adopted for the study, with the aid of a structured questionnaire on a total population of 96 firms. Questionnaires were administered to 96 production supervisors; hence, it was a judgmental census study. Findings upheld that all dimensions measured were of strong positive correlation at the least measure of 0.6 (p) ≥ 0.00. Among the conclusions reached was that making decisions was more strategically viable for firms to adopt in the industry. Thus, an empirically proven approach to procurement selection technique would be more reliable for sustaining the production capacity of the firms studied.

Public procurement and reputation. An agent‐based model

AbstractThis paper uses an agent‐based computational model to investigate whether and how considering the firm's reputation in the public procurement selection process affects the expected final contract cost. We take account of different sets of simulations and a range of model parameters (such as firm skills, level of opportunistic rebate, relative weights of reputation and rebate) and propose a reputation index based on the cost overruns recorded by winning firms at the conclusion of their contracts. We show that this index allows the awarding authority to (i) select the most efficient and the least opportunistic firms, and (ii) to exclude firms that engage in frequent opportunistic behavior whose reputation has declined. Our results suggest that reputation matters, and we derive some implications for policy.

КЛЮЧОВІ НАПРЯМКИ ДОСЛІДЖЕННЯ ТА ДИЛЕМИ В СФЕРІ ПУБЛІЧНИХ ЗАКУПІВЕЛЬ: ТЕОРЕТИЧНИЙ ФРЕЙМ

The work summarizes scientific approaches to the phenomenon of public procurement from the positions of various schools and currents, analyzes the key dilemmas that arise in the process of functioning of the public procurement system of various countries of the world. It is well-founded that problems in the study of public procurement arise due to a number of factors: poor definition of the subject of public procurement, as its boundaries are “blurred” between many academic disciplines; the existence of a “gap” between academic works on the socio-economic consequences of public procurement and the framework sequence of their construction and execution procedure; insufficient interest in studying public procurement on the part of regional and local authorities. The analysis of public procurement research was carried out in several areas: 1) procurement selection methods; 2) attributes of goods and services; 3) participants’ experience; 4) decentralization of purchases; 5) accountability and transparency; 6) efficiency; 7) evaluation of procurement policy. The key dilemmas in the public procurement system are analyzed, among which the following are highlighted: 1) the accountability / responsibility dilemma: developing flexible procurement systems while maintaining accountability and control; 2) the fraud / red tape dilemma: limit the opportunity for fraud / mismanagement while reducing operational constraints; 3) the principle / agent dilemma: identifying “best value” in the presence of competing goals and common agency; 4) short-term / long-term cost dilemma: short-term economic efficiency vs. long-term monitoring costs; 5) the cost of empowerment dilemma: responsiveness to “end user” through decentralization while increasing training and evaluation costs. In the long term, reforms aimed at improving procedures and increasing the adaptive potential of the public procurement system are critically important

Structural Equation Modelling of Public Construction Procurement Systems Implementation in Nigeria

Various procurement methods have been deployed by government organisations to deliver vital infrastructure to support socio-economic development in different spheres of life in Nigeria. However, there is a lack of empirical understanding relating to the contribution of public procurement process, barriers, drivers and selection criteria combined to project delivery in Nigeria context. This study identified five major constructs which were conceptualised to establish how different procurement options influence project delivery. The constructs were operationalized and developed into a questionnaire in a cross-sectional study. Data were sought from professionals involved in the management, design and operations of construction projects in Lagos and Abuja (i.e. project managers, architects, engineers, quantity surveyors, and procurement officers). The data were analysed using Partial Least Square Structural Equation Modelling (PLS-SEM) in order to determine the link among the constructs interrogated. The findings indicated that all the latent variables included in the conceptual model jointly contributed 59 per cent of variance explained. It was also revealed that drivers of procurement selection and selection criteria are significantly related to effective project delivery. Findings from this research show that for project to be successful in terms of cost, time, and other characteristics as stated in this paper, the most critical approaches to adopt are design-and-build and collaborative procurement. This implies that making the correct choice of construction procurement strategies is a recipe for project success. Government authorities and business organizations seeking infrastructure and procurement system improvements at various levels could use the developed model to improve project delivery.

Improving Procurement Selection Criteria for Managing Construction Tender-Price Volatility on Public Projects

This paper investigates current knowledge concerning adopted procurement strategies for managing construction-price in the public sector. The article reveals that studies mainly address four main areas: procurement decision support systems, transparency, ethical considerations in procurement, identification of procurement criteria, and overcoming inconsistencies in the procurement process. The paper provides a new perspective on the selection of procurement strategy. Therefore, selecting a suitable procurement strategy is essential for managing project pricing. The review has revealed that the lowest bid is the main criterion of contractor selection in the public sector. There is a need to combine some, if not all, procurement strategies within a significantly flexible approach that can have multiple potential advantages in the construction field by serving as a robust decision-making tool. There is a need to develop a public procurement strategy for managing construction price variability and inflation by modeling for fundamental principles such as value for money, benchmarking price performance, and reducing tendering documentation errors, that collude and conspire to impact price inflation, client perception and infrastructure push, and public accountability. The study, thus, deduces two principal factors that serve as critical indicators of a procurement selection criterion focused on managing construction tender-price variability and inflation. These include benchmarking price performance and eliminating errors in the tender documentation.

EFFECTS OF PROCUREMENT PROCEDURES ON PERFORMANCE OF PUBLIC BUILDING CONSTRUCTION IN THE MINISTRY OF EDUCATION AND VOCATIONAL TRAINING, ZANZIBAR

The study focused on effects of procurement procedures on performance of public building construction in the Ministry of Education and Vocational Training (MEVT), Zanzibar. The specific objectives of the study were to; analyze the effects of procurement planning on performance of public building construction in the MEVT, assess how procurement selection criteria affect performance of public building construction in the MEVT and to analyze the effects of procurement contract monitoring on performance of public building construction in the MEVT. Descriptive research design was adopted; the population of the study was 28 where a sample of 26 respondents was gotten from using Yamane formula of 1967. The sample was selected from the population by use of purposive sampling technique. Data used in the study was collected using questionnaire and interview. Qualitative data was analysed thematically while the quantitative data was analysed using Mean and standard deviation, frequency distribution and percentages; and multiple regressions. The findings showed that, procurement planning, procurement selection criteria and procurement contract monitoring varied on affecting performance of public building construction in the MEVT. The regression analysis found that, procurement planning, procurement selection criteria and procurement contract monitoring affected performance of public building construction by 59.2%, 37.3% and 30.7% respectively. All variables were significant at 0.000 and 0.001, P

Impact of Traditional Procurement System on Construction Project Delivery

Poor project performance issues have been a problem in the construction industry. A large number of projects have failed to meet their goal as a result of the choice of procurement adopted. The traditional method is the commonly used procurement method in the construction industries of the world, and its sequential and linear nature has serious implications on project time, cost and quality baseline performance. The purpose of this study was to determine the impact of the traditional procurement system on construction project delivery. The specific objectives of this study were; to assess the influence of the traditional procurement system on construction project parameters, and to determine the factors responsible for the poor bottom lines of traditionally procure construction projects. This study was achieved using a structured questionnaire administered to construction experts using a purposive sampling method. With a reliability index of over 0.800, the data gathered were analysed using appropriate descriptive tools. It was found that projects delivered through the traditional procurement system have the greatest impact on project time parameters, more on cost and quality parameters. Also, poor time, cost and quality performance are caused by major factors such as rework, poor original planning/unrealistic scheduling, poor communication among project participants, lack of competent staff and inadequate proper training of available staff, and design and documentation issues. Project clients and consultants should be careful in project procurement selection to ensure that maximum value and goals are met

A quasi-experimental design to assess the innovative impact of public procurement: An application to the Italian space industry

A growing number of empirical studies have shown that public procurement can be a relevant demand-side innovation policy. We assess the impact of public procurement on firms' innovation in the space industry. This is an important field of application because it widely uses public procurement and the procuring space agencies have distinctive characteristics, namely innovation-oriented mandate, relevant internal competences and professional skills. Specifically, we focus on the procurement activity of the Italian Space Agency over a 15-years period. We assess the causal impact of public procurement on suppliers’ patenting activity by implementing a novel quasi-experimental design. Our approach allows addressing the endogeneity issues and potential estimation biases stemming from both the procurement selection process and its time heterogeneity. By combining matching techniques with a staggered diff-in-diff approach, we find that, after the beginning of the procurement collaboration, the supplier firms have increased on average their patent applications by roughly 10% compared to the control group. Such effect is increasing in time and persists for several years after the beginning of the procurement relationship.

SISTEM PENGADAAN BAHAN PUSTAKA PADA DINAS ARSIP DAN PERPUSTAKAAN KOTA BANDUNG

One of the functions of Department Archives and Libraries of Bandung City is the development and implementation of regional library and archive management which includes library management, archive management and library and archive development. In the management of the library, the role of procuring a collection of library materials is very much needed, especially to increase the reading interest of the people of Bandung. The aim of this study is to determine the system of procurement of library materials, to find out the inhibiting factors in the library material procurement system, and to find solutions from librarians in overcoming obstacles in the procurement of library materials. This research was conducted at Department Archives and Libraries of Bandung City from June to July 2022. This type of research is qualitative research using a descriptive method. The instrument of data collection is by interview, observation, and literature review. The system of procurement of Department Archives and Libraries of the Bandung City is divided into three parts namely procurement selection, procurement process, and procurement result. The steps in the selection process for library materials are surveying user needs, collecting selection tools, and selecting library materials. The Techniques and methods of procurement of library materials with the method of selecting providers by direct procurement by procurement staff. The source of funds for the procurement of library materials comes from the Regional Budget of Bandung City in 2022. The process of receiving library materials includes the activities of examining received library materials, grouping of library materials, and submitting to the library material processing unit. After the procurement process is complete, then proceed to the reporting process. Reports are made periodically in the form of financial realization and performance realization which include procurement methods, number of procurements, types of library materials, and budget sources. difficulties in the procurement of library materials include the limited number of library materials published by publishers, the delay in information from publishers regarding the library materials ordered, and the absence of flexibility in determining the price of library materials. The solution to these obstacles is to communicate more intensely with publishers and seek information on library materials according to the required categories, frequent book fairs, and a more flexible policy of budget adjustment for the procurement of library materials.

Decision-Making Framework for Construction Clients in Selecting Appropriate Procurement Route

Procurement decision-making is a crucial determinant of project success. Although several objective, stage-based models have been proposed to guide clients’ procurement choices, little emphasis has been made on the subjective nature of construction clients. Recognizing the role of clients’ experiences in justifying procurement routes, this study develops a decision-making framework that is capable of guiding construction clients in making informed procurement choices. Adopting a mixed-method approach, comprising semi-structured interviews and multi-objective optimization, relevant procurement options were appraised based on clients’ specifications and project deliverables. The lived experiences of construction clients and the importance they attach to pre-defined selection rating criteria were subsequently evaluated, using a template that enables clients to prioritize procurement methods for different project types. The resultant framework offers a holistic, practical, and collaborative procurement selection process that promotes the efficient delivery of construction projects by reducing the cost overrun and delays associated with uninformed client decisions in construction procurement.

Construction Procurement Selection Criteria: A Review and Research Agenda

This paper presents a comprehensive literature review that addresses procurement selection criteria associated with procurement system evaluation in the construction sector. The aim is to consolidate the knowledge of construction procurement selection criteria (PSC) and provide future research directions. A systematic literature review (SLR) of 37 peer-reviewed journal articles from 1998 to 2019 in the construction procurement system selection process is carried out to understand the extant theoretical and practical foundations of the field. Two hundred fifty-six PSC have been identified. Descriptive and material analysis reveals (1) PSC evolved to match the promotion of emerging procurement systems in the construction industry; (2) three emerging themes of PSC have been identified, namely procurement systems, decision aid tools, and PSC identification methods; (3) PSC could be classified into generic criteria and unique criteria; (4) geographic location may not have a significant impact on the choice of procurement systems. This work identifies and discusses potential research interests in improving PSC identification. The research path, current trends, and future research directions in construction procurement selection are revealed. The paper provides the foundation and impetus for further investigation into procurement system selection practices.

A Conceptual Model for Selecting Early Contractor Involvement (ECI) for a Project

Amongst different aspects of a capital construction project, procurement is found to be the most important area and represents over 80% of the contract value. The selection of an appropriate procurement strategy is an important contributor to overall project success. Within several procurement methods, Early Contractor Involvement (ECI), a relatively new strategy to procure a construction project, is becoming more popular for infrastructure projects across Australia. However, it appears that ECI has been adopted as a preferred procurement option with little research or piloting, and decisions to select ECI for a project have been mostly judgmental, and subject to biases of the decision-makers. This paper focuses on this important issue and proposes a conceptual model for selecting ECI for a construction project. Grounded Theory research methodology is employed for this study that facilitates the generation of categories and contextualises theory. Validation of the theory was ensured by carefully practicing the theoretical coding procedures through ‘open coding’, ‘axial coding’, and ‘selective coding’. The data is collected through individual interviews with experts within client organisations who held senior management level roles in their organisations and were involved in the selection process of ECI and could provide input into their experience in that area. The proposed selection model integrates the procurement selection criteria specifically related to the project characteristics, client’s objectives, and internal and external project environments with alternative selection approaches and practices. This paper also discusses the notion of social, process, and output control by using ECI.

Selecting suitable procurement system for steel building construction

PurposeThe purpose of this paper is to select a suitable procurement method for steel building construction in Sri Lanka following a systematic method which weigh, both procurement selection factors and existing procurement systems.Design/methodology/approachAn abductive research stance is followed in this empirical study. Procurement selection factors were selected through a critical literature review which was followed by a quantitative questionnaire survey. The collected data were analysed using descriptive statistical analysis and relative important index.FindingsThe critical literature review outlined 46 procurement selection factors, out of which 26 factors were very important in steel building procurement selection. Short construction period and higher constructability of design are ranked at the top with the highest priority rating factors. Management-oriented procurement system was selected as the most appropriate procurement system for steel building constructions within the Sri Lankan context.Research limitations/implicationsThe study is limited to widely use three procurement systems in Sri Lankan construction industry. Yet, the process followed in selecting the most appropriate procurement system could be applied for other contexts. The implications of the study are mainly identifying management-oriented procurement as the most suitable procurement method for steel building construction in Sri Lanka.Practical implicationsThe systematic procedure of procurement method selection for steel building construction may use in the Sri Lankan construction industry to limit the resource loss due to wrong selection of procurement.Originality/valueA study which critically and comprehensively presenting a procurement selection process for steel building construction is not recorded in Sri Lanka prior to this study.

Factors influencing the selection of a procurement route for UK off-site housebuilding

While there is a plethora of research into the perceived benefits of off-site construction systems and the barriers towards their adoption, there has been very little discussion of the procurement route selection factors for off-site residential projects in the UK Midlands region. This study sought to identify the factors that influence the selection of a procurement method for off-site housebuilding projects in the Midlands. The aim of the paper was to identify the critical factors influencing the procurement selection for off-site housebuilding developments through a survey of 157 construction professionals and housing developers using the relative importance index as a basis for analysis. A comparison between the most highly ranked factors for off-site manufacturing and those presented in the literature indicates that practitioners’ perceptions are largely aligned with those of traditional construction processes. The higher constructability of design and environmental sustainability have been shown to have a greater influence on the selection of the most appropriate procurement route for off-site housebuilding as compared to those applicable to traditional construction. The research findings can also help practitioners to develop a wider and deeper perspective of the criteria for selecting the appropriate procurement method for off-site residential projects at a regional level.

Cost control mechanism as procurement selection decision matrix for Malaysian infrastructure projects

Malaysia was enumerated as the realm that retains a high quality of infrastructure facilities among the other ASEAN countries, and the number of infrastructure projects is progressively developed to offers a virtuous cordiality to the citizen. Inevitably, the infrastructure projects are barely devoted to the complex project selection decision phase where the procurement represents the suave configuration of the projects. However due to the difficulty in analyzing an assorted variety of procurement system afford by inexperienced decision maker the procurement route often unkempt the cost related dynamic. Regularly, the decision based on narrow consideration of cost and project quality overestimated in within a short period of construction. Even worst, there is partially public discourse on the cost control elements towards the disputable project procurement selection, which reflects the lesson learnt on the previous infrastructure project has mismanaged to provide a municipal cost precaution. Prior to that, the research objective is to identify the relationship in between the cost control mechanism and project procurement selection decision in infrastructure projects. The adoption of quantitative method and analysis applies in this research among the infrastructure expert settings. The output from the methods disclose that the cost control acquires a strong correlation in the project procurement selection decision equation with project risk, capital resources, alliance requirement based, changes of policy, fluctuation of inflation rates, labor cost, material cost, robust feasibility studies as a driver to an efficacious project procurement assortment verdict.

Suitability of public-private-partnership procurement method for road projects in Sri Lanka

PurposeGovernments of many developing countries that are unable to develop their infrastructure in order to obtain financial resources prefer to establish public–private partnerships (PPPs) for providing the much-required infrastructure. Time is thus opportune for Sri Lanka, which is also a developing country, to make use of PPPs to develop its road network. The purpose of this paper is, therefore, to identify the PPP models that suit road construction in Sri Lanka.Design/methodology/approachThe study used a mixed approach. The characteristics of road construction, procurement selection factors to be considered in road construction, and the different PPP models that can be used for such procurements were identified through a comprehensive literature synthesis. The findings were validated using expert interviews. A questionnaire survey identified the PPP models that suit road construction in Sri Lanka. The most suitable model among them was identified by ranking the PPP models using procurement selection factors.FindingsBuild–Own–Operate–Transfer was identified as the PPP model that best suits road construction in Sri Lanka. However, investors may not find it attractive because of its high payback period, a result of the low traffic volume in Sri Lanka. Therefore, a PPP model that involves road construction alone will not be feasible in Sri Lanka. It will have to include the construction of other infrastructure as well.Originality/valueThe study identifies a PPP model that best suits the road construction projects in Sri Lanka.

SAW, TOPSIS, PROMETHEE Method as a Comparison Method in Measuring Procurement of Goods and Services Auction System

In the procurement of goods and services POKJA conduct auctions and decide the results of the auction. The decision taken will assist POKJA to asses and determine the winner of procurement and goods and services auction. Decision making base on some criteria and complexity in the assessment of attribute and benefit. Multi – criteria decision making helps to find best alternative base on existing data. Aim of this paper is to compare three available multi – criteria decision making (MCDM) methods (SAW, TOPSIS and PROMETHEE) for the auction application. Multi-criteria decision making is needed to calculate the strength in each stage of the procurement selection process. Where multi-criteria decision making decision support system is used in seeing the strength and rank ranking of the winning candidate for goods and services procurement. The result of the research are Promethee method that is good in performance, stability, saw, and topsis. They are good in computation and transparency base on analysis rank, reference rank and review rank. The implication is to provide alternative to select the winner of goods and services auction

Development of an Expert System Tool for the Selection of Procurement System in Large-Scale Construction Projects (ESCONPROCS)

The human knowledge of a specific domain is dissipated either in books and journals or exists in the minds of few human experts. Expert system technology, which is of late becoming an important tool, uses the power of the human brain to store knowledge electronically so that information regarding decision-making can easily be accessed at anywhere and at any time. More often than not most decisions in the industry are based on just subjective decisions. But since each project is different from the other, there is the need to integrate heuristic approach in other to arrive at better decisions. Therefore the system, ESCONPROCS (Expert system for construction procurement selection) which is an expert system tool was developed based on extensive literature review of the available procurement systems as well as clients’ priorities and other external factors that influence the selection of an appropriate procurement system. An expert survey was conducted and their responses were used to provide a recommendation for the rules. The system, ESCONPROCS is developed to assist decision-maker (client) reaches a more informed decision on procurement system selection and contracting.