Public Purchasing Research Articles

„Future Generations“ and Sustainable Consumption

IntroductionAs consumption (SC) is (has to be) a current topic in case of consumers (private and public purchasers) and also of producers, at the beginning of the paper (Chapter 1) we introduce the main definitions and concepts of consumption based on an international literature review and in the same chapter we summarize the meaning of consumer behaviour. We also concentrate on eco-labelling and eco-labels, as tools of consumption, in the next chapter (Chapter 2) we introduce the main definitions, aims and usability of eco-labels using literature review.The secondary research is the base of our primer, questionnaire research, so the second part of our paper (Chapter 3 and subchapters (3.1, 3.2, 3.3)) introduces the results of this primer research (our method was descriptive statistic in the examination of answers). The questionnaire research focuses on the interpretation and the factors of consumption, in addition the influencing factors of choosing eco-labelled products; within the sample of Hungarian university students who are the members of generations (Students of Department of Environmental Economics (Budapest University of Technology and Economics)) were asked during a limited time period, so these are limits of the questionnaire research, however the sample is relatively high, so we assume that some general conclusions can be drawn from the answers). Finally, based on the results of the questionnaire research, at the end of the paper (Conclusions) we make conclusions about the interests on consumption and eco-labelling and also highlight the improving fields in raising awareness.1. Sustainable consumption and consumer behaviour - a literature reviewOur production and consumption habits/behaviour have a strong contribution to global environmental problems, therefore the necessity to move towards a more behaviour is urgent - as it is emphasised in the EU's Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan (COM (2008) 397 final, 2008). Numerous publications, roadmaps from the Commission call the attention for consumption and production (inter alia Roadmap to a Resource Efficient Europe (COM (2011) 571 final, 2011, Ch. 3 and 3.1), thus consumption and production is (has to be) a current topic in case of consumers (private and public purchasers (see green public procurement (inter alia (Diofasi & Valko, 2014)) and also of producers. As consumption is in the centre of this work, further paragraphs analyse mostly the concept of consumption.In spite of the fact, that term of consumption has appeared as early as in 1992, in the Rio Summit of the United Nations Conference on Environment and Development (Agneda21) (UNEP, 2010), today there is a wide range of definitions and approaches in connection with this concept. It is defined, characterized by different initiatives, reports, and international policies and also scientific literatures, however several works are about solutions towards achieving consumption patterns. Based on non-exhaustive but comprehensive literature review, we present a clear, summarized picture about the main characteristics of consumption.After the Rio Summit, the working definition of consumption and production (SCP) was created by the Oslo Symposium on Sustainable Consumption in 1994, namely SCP is [t]he use of services and related products, which respond to basic needs and bring a better quality of life while minimising the use of natural resources and toxic materials as well as the emissions of waste and pollutants over the life cycle of the service or product so as not to jeopardise the needs of future generations (Norwegian Ministry of Environment referred by UNEP, 2010, p. 12). According to this definition, the transition toward consumption and production patterns should mean more than just enabling consumers to buy products that are a bit more sustainable (Fedrigo and Hontelez, 2010 referred by Wang, Liu, & Qi, 2014, p. …

The policy–practice divide and SME-friendly public procurement

Policies aimed at supporting small- and medium-sized enterprises (SMEs) are now standard in public procurement. Interest in these policies has yet to be matched by evidence on their implementation. Using an institutional perspective, we examine public buyers compliance with SME-friendly policy recommendations. The results, which are based on the self-reported behaviours of 436 respondents, show that public buyers are complying with some but not all policy measures. Compliance is high on measures including open tendering, provision of feedback and self-declaring financial capacity, but low on measures that impose higher transaction costs, such as dividing contracts into lots and encouraging consortium bidding. Further analysis reveals that involvement in procurement, policy familiarity and perceived importance of SME access act as positive predictors of compliance; being part of a semi-state/utility company, local authority or education institution has the opposite effect. Possibilities to increase compliance and bring about a more SME-friendly tendering system are discussed.

Connecting demand and supply: The role of intermediation in public procurement of innovation

Intermediation in innovation serves to establish or improve the link between different actors with complementary skill sets or interests in order to support the generation and diffusion of innovation. This article conceptualises and analyses intermediation between supply and demand using the example of public procurement of innovation. It defines specific intermediation needs and functions in different procurement situations and outlines the pre-condition for effective intermediation. The paper combines and contributes to the growing literature on innovation intermediation and public procurement of innovation.As the paper looks at the demand for innovation it adopts a broad understanding of innovation, defined as a product, service or process that is novel to the buying organisation. In order to develop the conceptualisation of intermediation in the process of demanding innovation, it builds on the existing, rather rudimentary conceptualisation of intermediation in the innovation and management literature. It presents an in-depth analysis of two very different procurement processes in two cases in a complex public sector setting, the English NHS, case of a public buying organisation triggering the generation of an innovation, and another in which an organisation sought to respond to an innovation offered in the marketplace. In both cases, the solution bought necessitated strong adaptation processes with considerable learning costs within the buying organisation. The paper shows how intelligent and tailored intermediation can tackle some of the well-known procedural and capability failures in the process of public procurement of innovation. In terms of policy implications, the article makes the claim for an increased effort to build up effective intermediation across procurement systems to support agencies in concrete procurement and, in doing so, to build up capacity for more intelligent public buying. While the focus on intermediation responds to an existing gap in the literature on public procurement of innovation, the paper has implication for demand-supply intermediation more generally.

The Effect of Discretion on Procurement Performance

We run a regression discontinuity design analysis to document the causal effect of increasing buyers' discretion on procurement outcomes in a large database for public works in Italy. Works with a value above a given threshold have to be awarded through an open auction. Works below this threshold can be more easily awarded through a restricted auction, where the buyer has some discretion in terms of who (not) to invite to bid. Our main result is that discretion increases the probability that the same firm wins repeatedly, and it does not deteriorate (and may improve) the procurement outcomes we observe. The effects of discretion persist when we repeat the analysis controlling for the geographical location, corruption, social capital and judicial efficiency in the region of the public buyers running the auctions.

Internationalisation of Government Procurement Regulation: The Case of India

In the absence of a national public procurement policy, a plethora of rules and procedures govern public purchase practices of federal and sub-federal government entities including public sector enterprises (PSEs) in India. While these norms generally follow international best practices, their implementation falls short in providing transparency, accountability, efficiency and professionalism in the award of public contracts. With mandatory e-tendering of federal, sub-federal and PSE contracts already in place, enacting the lapsed Public Procurement Bill 2012, which inter alia provides for an independent dispute resolution mechanism and integrating states within a national procurement policy would complete the set of reforms needed to usher in transparency and efficiency in public purchases and internationalise the country’s government procurement regulation.

융합산업의 시장 경쟁력 강화에 관한 연구

The purpose of this research is to bring supportive ways to reinforce the market competitiveness of fusion industry based on the rapidly arising fusion industries considering system improvement and fusion R&D support. The research has proceeded in the order of setup for competitiveness reinforcing way of fusion industry and deduction for competitiveness reinforcing way based on directivity. It classified the fusion industry into introduction, diffusion and development by time, and suggested expert fusion R&D, open type fusion R&D, customized fusion R&D, system improvement of market entrance and supportive way for public purchase as the supportive way. It`s purpose is to lead the entrance into the new fusion market, stabilize to settle into the market and create high value products by resolving difficulties for the market entrance of the new fusion products & service, reinforcing the fusion capability and securing the competitive advantage.

Scenario-based risk framework selection and assessment model development for natural disasters: a case study of typhoon storm surges

Many studies have revealed the importance of risk assessment of natural disasters for public safety management, emergency responses and insurance purchases. This paper focuses on three aspects of a risk assessment process: (1) comparing the existing risk frameworks and assessment methods, (2) conceptualizing a scenario-based risk analysis approach and (3) specifying a quantitative assessment model. After a close examination of relevant research, we selected the triad of Hazard, Vulnerability and Adaptation Capability as the risk framework for the present study. We also prescribed several scenarios based on the spatiotemporal dynamic environment leading to given disasters. The assessment model is tested with six scenarios of typhoon storm surges striking Yuhuan County in Zhejiang Province, China. Three findings are highlighted in this paper. First, scenario-based simulation has become a dominant approach in risk analysis under the circumstances where disasters of high intensity, complexity and variability tend to occur frequently. This approach allows identification of acceptable risk with a certain probability. Second, the assessment model can reveal the collective enhancing effect of Hazard and Vulnerability and the mitigation effect of Adaptation Capability to the comprehensive risk. Lastly, the empirical study of Yuhuan indicates that R = 0.90 × H × V − 0.10 × C is the most feasible model for assessing the risk of typhoon storm surges. In general, the proposed methodology may be adapted for risk analysis of diverse disaster scenarios.

Regional Protectionism in State Procurements

The method for evaluating protectionism rate in regional public purchases is developed. It is tested with data for 2011-2013. The presented regional rankings of protectionism show that high-level protectionism covers a majority of regions accumulated steadily about 80% of total regional public purchases’ volume. The federal contract system is considered as an instrument of public regional policy that could contribute to the interregional trade and strengthen internal economic space. Main forms of allowable protectionism in regional public purchases are identified (regional list of protected products, territorial price preferences) and suggested to be legalized.

PIN34 - Financial Impact of Not Prescribing “By The Book”: Art and Sustainability of Seguro Popular

Estimate the financpgial impact of current prescription practices for first time enrollees (FTE) financed by SP and calculate potential savings if physicians were adhered to the official guidelines. Data for FTE about prescriptions, CD4, Viral Load and public purchase ART prices were obtained from CENSIDA for period January 2012 to Jun 2014. Information was analyzed to identify ART prescriptions according to official guidelines. Average annual cost (AAC) of ART per enrollee was estimated under two scenarios of prescription: a) observed in practice; b) according to official guidelines. With the AAC of ART we estimated the potential savings that would be generated for SP. Around 60% of ART observed prescriptions for FTE adhered to official guidelines. AAC of current prescription for 9,500 FTE amounts to US$34.1 million equivalent to 23% of financial resources available for high cost treatments in SP. If physicians would had adhered to the official guidelines savings for US$5.4 million that represents 16% of the total annual spending in FTE would had been generated in the period analyzed. On average FTE who initiate ART are maintained for 3.5 years with the initial scheme, thus savings that could be generated would reach US$18.8 million. Financing ART given its chronic nature creates an increasing pressure in the public funds available for high cost treatments in SP. This situation would generate insolvency in the midterm if public policies focused on strengthening prescription monitoring and sanction, cost containment of ART and health outcomes are not enforced in the short term.

Evaluating Small Businesses' Performance in Public e‐Procurement: Evidence from the Italian Government's e‐Marketplace

e‐Procurement is widely advocated as an effective tool to promote the participation of small and medium enterprises () as well as micro enterprises in the public procurement market. However, little evidence exists as to what factors may influence the allocation of contracts to differently sized suppliers. We address this issue by analyzing a rather rich and unique data set, namely the “direct award” (low‐value) transactions that took place on the Italian e‐marketplace during the period 2005–2010.In this paper, we exploit data from low‐value transactions to test the impact of different structural dimensions of the national public e‐marketplace on the probability that firms of different size are awarded public contracts, particularly focusing on micro and small firms. We find that both the nature of the public buyer and the characteristics of the traded goods/services do have an impact on different firms' ability to be awarded public contracts. We also test to what extent the geographical distance between public buyers and private suppliers explains the propensity of different size class of firms to be awarded public contracts, proving, at least to some extent, that some features of “physical” procurement markets are mirrored in the “virtual” market.

Quality target negotiation in health care: evidence from the English NHS.

We examine how public sector third-party purchasers and hospitals negotiate quality targets when a fixed proportion of hospital revenue is required to be linked to quality. We develop a bargaining model linking the number of quality targets to purchaser and hospital characteristics. Using data extracted from 153 contracts for acute hospital services in England in 2010/2011, we find that the number of quality targets is associated with the purchaser's population health and its budget, the hospital type, whether the purchaser delegated negotiation to an agency, and the quality targets imposed by the supervising regional health authority.

Differences in Buying Behavior of Self-Lovers According to the Form of Self-Love

We assessed whether or not individuals high in narcissism and those with high self-efficacy showed different behaviors in buying situations, by collecting quantitative responses to scenarios using an online questionnaire. The Study 1 participants comprised 133 students at universities offering 4-year college courses and Study 2 participants were 83 workers and 15 university students. Results of Study 1 showed that narcissists depended more on visual information whereas people with high self-efficacy depended more on attribute information. In particular, covert, unlike overt, narcissists depended on visual information in private buying situations. In contrast, people with high self-efficacy were found to depend on attribute information in public buying situations in which they could display their ability to others. In Study 2, behavioral differences were verified between narcissists and people with high self-efficacy depending on display methods. Narcissists preferred brand displays, whereas people with high self-efficacy preferred product displays.

The abandonment of procurement-linked strategic activism in Australia: standing still with room to move

In this paper I examine the extent to which preferential trade agreements (PTAs) limit the Australian government's ability to use public procurement for local industry development ends. I do so not only by examining Australia's PTA obligations, but also by examining how other governments with similar obligations—such as Korea—are using public purchasing policies to promote local industrial advancement. I find that the PTA obligations of the Australian and Korean governments leave them both significant scope to use public purchasing strategically. Interestingly, however, Australian policymakers have been standing still in the room that remains, and even abandoning PTA-compliant procurement-linked development policies. South Korean policymakers on the other hand have been capitalising on every inch of space left open to them—and even experimenting with new forms of strategic public purchasing that nonetheless comply with their international obligations. I conclude by offering some suggestions as to how we might explain these countries’ radically different approaches to procurement policy, despite their very similar international obligations.

Analysis of Procurement System for Social Enterprise on Public Purchase in Chungbuk Area

Analysis of Procurement System for Social Enterprise on Public Purchase in Chungbuk Area

Buying power and human rights in the supply chain: legal options for socially responsible public procurement of electronic goods

Several scandals involving well-known electronics brands have highlighted the exploitative and unsafe conditions under which many workers operate in the industry's long and complex supply chains. As large-scale consumers of electronic goods, public buyers potentially hold significant leverage over the behaviour of their suppliers through their buying power. Consequently, public procurement has the potential to be a significant influence on these supply chains and ultimately the human rights of those working in them. This article critically assesses legal options for the promotion of social considerations in the supply chain, considering in particular the potential of the European Union legal regime for public procurement as a tool for improving working conditions and human rights in the electronics industry supply chain.

The enlightenment underpinnings of the public procurement profession

Enlightenment philosophers profoundly influenced the emergence of democracy. Enlightenment ideas underlie much of the theory and practice of public procurement today. Economic theory, dating from the writings of Adam Smith and his mentor Frances Hutcheson, assumes that suppliers will act in their own self interest. Knowing this, public buyers seek to fashion incentives to align the private interests of suppliers with public needs. But Hutcheson and others argued that civic duty and benevolence should guide public servants in seeking value for their fellow citizens. That argument is the basis of our codes of ethics. The clams of public procurement to being a profession will be greatly bolstered when it is recognized that our knowledge base is rooted in the same Enlightenment thinking that undergirds other professions and academic disciplines.

Government Bonds Ammunitions for the ECB Quantitative Easing

The aim of this paper is to investigate a range of financial techniques and policy strategies for a Quantitative Easing (QE) program by the European Central Bank (ECB) that would rely on Euro area government bonds purchases under various modalities and guises. In particular, we provide an empirical study of different possible QE arrangements, with a special focus on a proposal of a securitization structure that could clear the different sovereign bonds from credit risk and heterogenerity. The securitization framework proposal is compared with a program of Euro-area public debt direct purchases under two alternative scenarios of: i) pari-passu creditor status of the ECB with respect to private investors; ii) preferred creditor status of the ECB. We consider three cases of “un-managed” (fixed composition) direct purchases according to which member states bonds are purchased in proportion to: i) the “capital key” representing equity holdings of ECB’s shares; ii) a “liquidity-key” representing the relative amount of sovereign bonds outstanding; iii) an equally-weighted portfolio of sovereign bonds. We evaluate the impact of various SPV characteristics - such as bond tranche attachment choice - as well as various financial market scenarios. For these choices we provide a risk management analytical framework based on Monte Carlo simulations. This allows us to compute the probability distribution of credit losses under various credit spreads and default correlation scenarios as well as to design appropriate stress testing procedures to gauge the robustness of our proposed GBB QE solutions. In this version of the paper our modelling strategy relies on the Gaussian copula assumption in default risk correlation. Using end of October 2014 CDS market quotes for 10 Euro-area sovereign bond market, as well as an estimate of a Gaussian copula measure based on historical CDS quotes time series, we conclude that the expected loss would be about 75 basis points on a 5 year horizon for a senior tranche bond with 30% attachment (that is absorbing losses on the government bond portfolio beyond 30% of its value). For all practical purpose, such expected loss and the corresponding credit spread value would be similar to the risk of the German Bund as measured at the same valuation date. As for the junior tranche bond credit risk, we reckon credit spreads between 200 and 300 basis points - depending on the underlying assumptions - which would be comparable with Portuguese government bond credit risk at the same valuation date. Our stress test analysis - based on historical data recorded in November 2011 (Euro area sovereign debt crisis acme) - shows that the securitization structure would effectively limit the credit risk increase on the senior tranche to 5-6% of expected losses estimated in our benchmark case on a 5 year horizon. As one should expect, this fairly solid protection to the senior tranche would come at the cost of a huge credit deterioration for the junior bond tranche to an expected loss level of 60%. This implication should make the junior tranche bond a financial product suitable only for sophisticated institutional investors.

Public procurement of innovation: empirical evidence from EU public authorities on barriers for the promotion of innovation

Public procurement is seen as a powerful instrument for innovation policy, but meaningful barriers seem to hinder its deployment. This study reviews literature on complexity, time consumption, and risk representing important hindrances for the procurement of innovation from public buyers' perspective. Findings provide evidence on the existence of hindrances for public procurement of innovation across European Union member states through the analysis of data from a large-scale survey. Further, differences in terms of the perception of barriers become evident depending on the availability of monitoring systems for innovation performance.

How does performance history impact supplier selection in public sector?

Purpose – The purpose of this paper is to study if the performance history impacts supplier selection in the French public sector context. While French public procurement legislation forbids consideration of the past contract wins in supplier selection, public contractors may still rely on contract win history for highly complex transactions. Design/methodology/approach – Using French Official Journals (BOAMP), the authors collected all public procurement transactions of 976 suppliers that had at least one transaction per year, over a period of six years (between 2006 and 2011). The authors conducted a two-level hierarchical linear auto-regression analysis and a feature evaluation analysis for all transactions. Findings – The paper finds significant variation between the transactions of different markets, as well as in the overall positive impact of past wins and in the detailed impact patterns and thresholds of each market. The findings may allow refinement of existing contract awarding strategies and of current legislation. Originality/value – The paper aims at empirically testing whether a supplier’s degree of success in any given year, measured by the number of public contracts won, may have an impact on the likelihood that the same supplier is awarded a public contract the following year. The authors conclude that suppliers retained for public contracts could benefit from building public buyers’ loyalty using a key account selling approach rather than systematically seeking to acquire new contracts.

Internationalisation of Government Procurement Regulation: The Case of India

In the absence of a national public procurement policy, a plethora of rules and procedures govern public purchase practices of federal and sub-federal government entities including public sector enterprises (PSEs) in India. While these norms generally follow international best practices, their implementation falls short in providing transparency, accountability, efficiency and professionalism in the award of public contracts. With mandatory e-tendering of federal, sub-federal and PSE contracts already in place, enacting the lapsed Public Procurement Bill 2012, which inter alia provides for an independent dispute resolution mechanism and integrating states within a national procurement policy would complete the set of reforms needed to usher in transparency and efficiency in public purchases and internationalise the country’s government procurement regulation.