In green public procurement (GPP), policy driven environmental requirements are introduced in the formal procurement process with the aim to reduce the environmental impact through the life cycle of the procured goods and services. In practice, formal governance and policy requirements often appear disconnected, thereby limiting the progress of GPP efforts…
In light of the Theory of Ecological Modernisation, this is the first work to explore the organisational barriers affecting one of the most significant sustainable public procurement initiatives in Latin America: the Brazilian Environmental Agenda for Public Operations Management (the ‘A3P Programme’). This article explores the barriers to sustainable procurement in a Brazilian context, inspired by the work of Brammer and Walker (2011). Based on the results of a survey of programme managers, our first recommendation is to group the barriers to sustainable procurement into five categories: organisational culture, motivation, economic uncertainty, market, and operations. Amongst these, it was found that organisational culture stands out as a particular barrier to sustainable public procurement. This work also highlights Ecological Modernisation Theory as a useful tool for understanding why variables related to cost and budget are not barriers to implementing sustainable public procurement initiatives. Consequently, the main implication of this study is that government should consider cultural change management when developing sustainability management initiatives.
We report results from a randomized policy experiment designed to test whether increased audit risk deters rent extraction in three areas of local government activity in Brazil: procurement, health service delivery and cash transfer targeting. Our estimates suggest that temporarily increasing annual audit risk by about 20 percentage points reduced the share of audited resources involved in corruption in procurement by about 10 percentage points and the proportion of procurement processes with evidence of corruption by about 15 percentage points…
El tema de las “contrataciones públicas” y su estrecha relación con la “buena gobernanza” en el Perú como derecho fundamental, constituye eje central para explorar propositivamente la construcción de dichas categorías a partir del reconocimiento intrínseco que la Constitución Política del Perú otorga a tales categorías jurídicas dentro del marco del respeto y garantía a los derechos fundamentales.
The objective of a circular economy (CE) is to maintain the value of products, materials, and resources in the economy by closing material loops and minimizing waste generation. In recent years, the role of public procurement has been recognized as an important, but as yet not fully exploited, opportunity by cities and municipalities in their transition toward circular societies. This study analyzed public procurement opportunities to promote CE…
This article explores the modes of application of red flags in public procurement by comparing widely known red flag tools that have been developed by international organisations. The main items of interest are the tools designed and used by TI, the World Bank, the OECD, and others supported by the European Commission. The objective of the research is to call attention to the fact that in the course of identifying red flags it is necessary to clarify the objectives of the related instruments and the available data, while acknowledging that the former must be realistically applicable and regularly maintained.
Life Cycle Costing (LCC) is rarely used in public procurement and public institutions have yet to fully understand its potential value for sustainable procurement. The new European Directive on Public Procurement is, however, designed to position LCC as central to sustainable sourcing. Although previous studies have identified positive correlations between Green Public Procurement Policies (GPP) and LCC, it is still unclear how public institutions can further adopt LCC practices by leveraging their experience of green sourcing…
Green public procurement (GPP) is one of the crucial environmental policy tools for sustainability. Although GPP has been implemented in many developing countries, its performance is in urgent need of improvement. This study focuses on the perspective of procurement officials’ knowledge and develops a new conceptual model with direct and moderating effects to explore factors that may affect Chinese procurement officials’ GPP performance…
Innovative public procurement is increasingly considered as a form of public support for private innovation activities by both innovation scholars and policymakers. Economic historians have suggested an even more fundamental role of public procurement in setting the pace of technological change, reporting how defense-related procurement has had a major impact on the emergence and diffusion of many general purpose technologies developed in the United States in the 20th century. In this paper, I suggest that procurement might represent one of the most important elements in creating the right soil to ‘cultivate’ a technology that may have the potential to reach high levels of pervasiveness. To test this hypothesis, I make use of patent data and patent citations. I design a quasi-experiment to compare the changes in the level of generality level over time, between a group of treated and a group of control patents. A patent is assigned to the treatment group if it receives a citation from a patent related to public procurement. Results suggest a positive and significant impact of innovative public procurement on the generality of a patent.
The international dimension of public procurement has gained in importance in the last decade and has attracted the attention of economist and policy makers. A number of trade agreements were signed with the intention to remove barriers to procurement markets and favour entry of foreign firms and products. However, empirical evidence shows that, despite the existence of trade agreements, discrimination towards foreign firms still applies in a number of countries around the world. In this paper, we present the methodologies used in the economic literature for the identification of overt and covert barriers to public tenders and discuss the importance of collecting high quality data for meliorating the ability of international traders to detect procurement barriers.
The aim of this research is to contribute to the limited existing research on the subject of SME access to international procurement by analysing whether the dynamic capabilities of learning and knowledge management would allow SMEs to overcome the internal and external barriers of the international public procurement market. By means of CAQDAS software and in-depth interviews with management-level executives responsible for international procurement, the authors analysed the barriers faced by Spanish firms in the public procurement market, and studied the dynamic capabilities developed to overcome those barriers. Results show that SMEs develop dynamic learning and knowledge management skills and that these are embodied in knowledge acquisition and transformation capabilities. The authors provide SMEs with ideas not only about the learning and knowledge capabilities required in the international public procurement market, but also about the key barriers they may find. Moreover, suggestions for public administration are also provided. The value of the paper is twofold, on one hand, the paper tackles the problems of the market barriers in international public procurement from the perspective of how SMEs can overcome them. On the other, it is the first time that research integrates these two areas of analysis i.e. international public procurement and barriers overcome by dynamic capabilities.
Starting with a brief introduction to Corporate Social Responsibility (CSR), and political attempts that aim at promoting social responsibility of enterprises, this chapter focuses on regulatory instruments to use states' consumer power as a lever to promote CSR in a world that is increasingly shaped by supra-national trade agreements. By taking into account socially responsible behavior of potential business partners when making procurement decisions, states' agencies can aim to promote CSR a business case for companies. Yet, in the light of increasing supranational regulation aiming to promote free trade, tensions arise between market-building and free trade on the one hand and political attempts to use public procurement as a means to foster CSR on the other. This chapter provides an outline of the current state of supranational regulative policies on public procurement, with special emphasis to the European Union, and explores their implications for strategic public procurement.
Due to the scope of procurement in the public sector, public procurement policy has the potential to shape the behavior of market actors and promote the growth of businesses with socially relevant characteristics. This chapter looks at the public procurement process in South Korea as well as the implementation of the country’s e-procurement system…
When speaking about electronic government, Romania is giving a special attention to relations between government and organizations. The main reason is the fact that private organizations are the driving force of economic growth. On the other hand, are two principles of public procurement: more attention to transparency and efficient use of public funds. SEAP (Public Procurement Electronic System) as G2B eGovernment solution was gradually developed starting 2002, offering numerous benefits…
This paper provides a concise presentation of judgments of the Court of Justice in the field of public procurement, handed down between March 2016 and March 2017, which add interesting new elements to the Court’s case law. It focuses on developments concerning the scope of application of the public procurement directives, the qualitative selection of tenderers, the award of the public contract and the judicial protection awarded to tenderers.
This research paper seeks to increase the knowledge of the transition process from transactional arm's length tendering towards partnership thinking in centralized public procurement. In centralized public procurement, the professional public purchaser forms a triadic partnership relationship with the public unit managing the procurement implementation and the private organization. A triadic partnership relationship in a home nursing procurement setting is investigated to further the understanding of the relationship dynamics related to the transitioning of public and private actors towards partnership thinking. The research shows how transactional procurement logic hinders the transition to partnering by establishing challenges for initiating and nurturing public–private partnerships (PPPs) and how partnership thinking changes this procurement logic. It illustrates the transactional procurement logic of single actor and the logic underlying the relationship of two actors to engender and intensify the problems of triad in the centralized public procurement process and vice versa; that is, a shared understanding from jointly agreed procurement goals between two actors is identified as promoting triadic partnering. Managerial implications are given for those public and private organizations engaging in PPPs and seeking to understand the ways of managing them in the context of centralized public procurement, particularly during the transition towards partnership thinking.
“The objective of this paper is to offer an in-depth description of Taiwan’s success in green public procurement (GPP) efforts through legal systems and innovative measures, which were relevant to the contribution to the greenhouse gas emissions mitigation addressed in the United Nations Framework Convention on Climate Change (UNFCCC)…”
“This study investigates challenges of implementing green public procurement (GPP) in Australian public healthcare sector. Through an extensive literature review it develops a framework of GPP implementation that incorporates five challenge-categories and sixteen challenges…”
“Despite the fact that public procurement of innovation (PPI) has become an increasingly popular policy tool, there has been a lack of holistic approaches to assessing policies promoting PPI. This article attempts to address this gap by proposing a framework which links the multiple levels and aspects related to the design and implementation of PPI policies…”
“The objective of this research was to describe the types of business networks formed to meet the requirements established by the new bidding law, the Differential Public Procurement Regime (DPPR), the innovations of this bidding system and the effect on the construction supply chain…”
Public procurement is important in itself but is also an important intervening force in some business networks. Two aspects are of particular interest. The first is that public purchasing is an important ingredient in public policy in relation to a number of business networks; it is substantial in areas such as transportation, communication, health care and defence, where the ‘public’ is often the most dominating actor. As such it can be one of the measures in innovation policies, as well as in regional and local development policies. The second aspect is that public purchasing is highly regulated by law, based mostly on the assumption of ‘homogeneous, competitive, product markets’. That restricts public procurement in forming close and continuous supplier relationships, thus making more effective use of these relationships, particularly for development purposes. A consequence is that suppliers’ capabilities cannot be used in the same way as in the private sphere. The chapter concludes with a discussion of current developments in regulation that allow closer collaboration with suppliers and the likely benefits, a feature that has been evidenced in prior Industrial Marketing and Purchasing (IMP) research.
This article furthers the discussion in the March 2015 (Vol. 35, No. 2) issue of Public Money & Management on ‘Public procurement policy and practice— international lessons and debates’. In particular, it illustrates some of the major difficulties in achieving the required policy outcomes through the procurement processes. The numerous ‘failures’, particularly in the defence acquisitions area, are of ongoing concern both in terms of ‘blow-outs’ in costs and, more unfortunately, in achieving strategic defence capability and overall policy outcomes in required timeframes. Can current public sector reforms and observed better practice provide any encouragement for, discipline on, participants to achieve the required results or is it all just too difficult?
Appropriate laws and regulations are an essential tool to direct the action of procurers toward the public good and avoid corruption and misallocation of resources. Common laws and regulations across regions, nations and continents potentially allow for the further opening of markets and ventures to newcomers and new ideas to satisfy public demand. This book collects original contributions, from both economists and lawyers, related to the new European Union Directives just approved in 2014 by the EU Parliament.
Uniquely, this book combines juridical and technical expertise so as to find a common terrain and language to debate the specific issues that a Public Administration in need of advancing and modernizing has to face. This format features, for each section, an introductory exchange between two experts of different disciplines, made of a series of sequential interactions between an economist and a lawyer that write and follow-up on one another. This is to enrich the liveliness of the debate and improve the mutual understanding between the two professions.
Project management has become an answer to many traditional organizational structuration and performance shortcomings, while gaining currency in business and public sector organizations. Public procurement systems have evolved into public electronic procurement systems with variations and distinctions in the age of globalization and digitalized complexities. This article examines the development of public e-procurement as an innovation in public management in the contexts of project management, public procurement management, and e-governance. It also links practice to theory—through a fourfold theoretical perspective—with contributions to the knowledge in public procurement, governance, and public administration.
This chapter examines public procurement policy within the Caribbean context. We first examine procurement policy in the context of broader, neoliberal market based reforms and its limiting effects on using public procurement as a socio-economic development tool. We then examine the state of various public procurement reforms in the Caribbean, as well as particular experiences such as disaster procurement. Third, we examine some broader developments such as relating to the Economic Partnership Agreement and some alternatives. This chapter finds evidence of instances in which public procurement is used toward furthering local economies, and the OECS stands out as a unique and unparalleled collaborative public procurement system among state groupings. However, much progress is yet to be made and Caribbean leaders are not yet seen ready to assume the responsibility for regionally relevant procurement policy development.
In the procurement process the decisions of project teams determine if the potential of sustainable procurement is attained. To optimize this, project teams should be encouraged to adopt new behaviour. The academic literature awards an encouraging role to the change agent. A comparison of the role of change agents in seven Dutch public procurement projects shows that change agents play an important role in sustainable procurement projects and help project teams progress towards sustainable procurement.
The current climate change scenario calls for decisive actions to ensure sustainable development, among which a key factor could be the goal of reducing carbon footprint. However, a major constraint is the voluntary reporting of what are known as “other indirect emissions”, and this is particularly critical in service companies with a lack of direct emissions and indirect energy emissions. These companies play an important role in public procurement, and governments need to take advantage of the Green Public Procurement initiative. This work aims to calculate the carbon footprint of a commonly outsourced conservation and maintenance service as well as to compare the results from two consecutive years in order to provide recommendations for implementing carbon footprint requirements in public procurement. To our knowledge this is the first description of the carbon footprint of a conservation and maintenance service conducted with a view to providing specific recommendations for Green Public Procurement. The total carbon footprint of the conservation and maintenance service was 152 t CO2eq in 2011, and 214 t CO2eq in 2012 (41% higher). In addition to this rise in greenhouse gas emissions, operational expenses and investments increased to 12%. Results, implications and potential future actions are discussed within the Green Public Procurement initiative. The main conclusion is that the inclusion of carbon footprint in Green Public Procurement can act as a strong stimulus for eco-innovation.
Public–private partnerships (PPPs) have become an increasingly popular way for governments to procure for their citizens certain public services. Supporters argue that the private sector can provide services more efficiently while critics complain that the long-term contracts involved reduce governments’ ability to adapt to changing needs. This paper shows that the optimal choice between a PPP and traditional public procurement depends on a number of factors, including the likelihood that changes will be necessary, the productivity of non-contractible effort exerted by private sector partners, and the bargaining power of government vis-à-vis private parties. It also shows that this choice may depend on whether the government’s objective is to maximize “value for money” or to maximize total social surplus.
This book focuses on Public Procurement for Innovation. Public Procurement for Innovation is a specific demand-side innovation policy instrument. It occurs when a public organization places an order for a new or improved product to fulfill certain needs that cannot be met at the moment of the order. The book provides evidence of the potential benefits to public and private actors from the selective use of this policy instrument and illustrates the requirements and constraints for its operationalization. The book intends to significantly improve the understanding of key determinants of effective public procurement aiming to promote innovative capabilities in the supplying sectors and beyond. It provides both case studies and conceptual contributions that help extend the frontier of our understanding in areas where there are still significant gaps.
This paper examines the role of internal controls and monitoring practices in corrupt contexts and how these controls and practices shape the ethics and moral behaviors of organizational actors. Specifically focusing on corruption in government procurement and drawing on the insights of Michel Foucault and Gilles Deleuze, the paper proposes that effective anti-corruption practices depend upon an understanding and analysis of the practices and politics of visibility, and that effective ‘luminous arrangements’ have the potential to discourage corrupt practices and influence ethics within organizations. While such arrangements do not necessarily prevent corrupt practices, they do encourage certain actions and reactions among organizational actors, suggesting that organizational actors are at one and the same time free and autonomous, yet subject to and constructed by anti-corruption practices. These practices are thus both disciplinary and productive, affecting individuals in specific ways, while also benefitting the organizations for whom they work.
Public sector organizations are large buyers and, in previous research public sector, have been regarded to be able to affect the market through demand-driven innovation, especially if different public sector entities collaborate with each other. However, what this study shows is that it is not necessary to be big or to collaborate in order to make an impact on the market, as even smaller local authorities have the ability to affect. In fact, it could even be an advantage to be small. The important factor is to think strategically about purchasing and to have knowledge about the market.
This book maps the latest developments in public procurement of innovation policy in various contexts and analyzes the evolution and development of the various policy solutions in broader institutional contexts. In doing so, it addresses significant theoretical and practical gaps: On the one hand, there is an emerging interest in public procurement as a policy tool for spurring innovation; yet on the other hand, the current theory, with some notable exceptions, is guided and often constrained by historical applications, above all in the defence industries. By carefully examining the cases of eleven countries, the book points to the existence of much more nuanced public procurement on the innovation policy landscape than has been acknowledged in the academic and policy debates to date.
Un primer objetivo sustancial de este estudio es ahondar en el concepto y las ventajas que desde la óptica de la sostenibilidad comprenden las compras públicas socialmente responsables (CPSR), su incidencia sobre el trabajo decente y el fortalecimiento de la pequeña y mediana empresa (PYME). En segundo lugar, procura dar a conocer el avance que han mostrado en esta temática los países de Centroamérica por medio de las iniciativas gubernamentales y legislativas nacionales.
Las CPSR han alcanzado gran relevancia en los últimos años enmarcadas dentro del concepto de desarrollo sostenible, mediante el cual se busca satisfacer las necesidades actuales de las personas sin comprometer la capacidad de las futuras generaciones para solventar las suyas.
This study examines the relationship between sustainable procurement and e-procurement, two recent initiatives in public procurement in many countries. A survey of sustainable procurement and e-procurement adoption was conducted with a sample of over 280 public procurement practitioners from 20 countries and with collective responsibility for expenditure totalling $45 BN. Using multiple regression, we develop a model to show that e-procurement and communication with suppliers supports some types of sustainable procurement, and hinders others. E-procurement and communication with suppliers may help environmental, labour, health and safety aspects of sustainable procurement. Conversely, e-procurement may hinder buying from small local firms that are not e-enabled.
Between 2002 and 2012, countries in Latina America and the Caribbean have made considerable progress in reforming their procurement systems in terms of savings in public procurement, transparency, and access of SMEs to the public procurement market. In 2012, countries in the region saved 13.7% in the public procurement of goods and services, equivalent to US$33 billion. Moreover, 70% of public contracting is published on the internet. This document analyses the impact of reforms in public procurement in the Region in the past ten years, and summarizes 'Efficiency and Transparency in the public sector. Advances in public procurement in Latin America and the Caribbean 2002¿2012', was prepared by the Inter-American Development Bank (IDB), in cooperation with the Inter-American Network for Government Procurement (RICG in Spanish) and the Organization of American States (OAS).
Durante la década 2002-2012, los países de América Latina y el Caribe realizaron un notable esfuerzo por reformar sus sistemas de compras públicas alcanzando importantes impactos en términos de ahorro, transparencia y acceso de mimypes al mercado de licitaciones gubernamentales. Entre los más significativos encontramos que en 2012, el ahorro en compras públicas alcanzó el 13,7% del PIB de la Región, unos 33.000 millones de dólares; o que el 70% de las adquisiciones públicas son accesibles en Internet. El presente documento sintetiza la publicación 'Eficiencia y transparencia en el sector público. Avances en las compras públicas en América Latina y el Caribe 2002¿2012', realizado por el Banco Interamericano de Desarrollo (BID) en colaboración con la Red Interamericana de Compras Gubernamentales (RICG) y la Organización de los Estados Americanos (OEA); y que analiza y cuantifica el impacto de las reformas en la contratación pública durante los últimos diez años en la región.