Centralization and decentralization of public procurement

2019 ◽  
Vol 16 (3) ◽  
pp. 262-276
Author(s):  
Karem Sayed Aboelazm ◽  
Attia Afandy

Purpose The purpose of this paper is to present and analyze the different concepts of centralized and decentralized procurement methods; identify the advantages and disadvantages of each method and the two methods of public procurement applied in the Arab Republic of Egypt in an attempt to overcome the disadvantages of the Egyptian system; and introduce a new framework for government procurement in Egypt. Design/methodology/approach The descriptive approach was used in the framework of the presentation and analysis of the concepts of centralized public procurement and decentralized public procurement. The comparative approach was used for presenting some of the experiences of countries in using public procurement methods. The legal approach was also used in the analysis of the legal frameworks governing the public procurement methods in the Arab Republic of Egypt. In addition, the case study methodology was used to study the role of the General Authority for Governmental Services in Egypt in the centralized public procurement processes. Findings This paper attempts to find the ideal method of public procurement in general and what is the method to be followed in the Egyptian case through the data presented and analysis of the Egyptian public procurement system. Research limitations/implications This paper attempts to present a model or a theory on how to determine the public procurement methods that should be used in a given country and give sufficient flexibility for the conformity between the two methods upon application depending on the ecological factors of each country. Practical implications This paper contributes to the development of the public procurement method in the Arab Republic of Egypt by showing the gap between the use of the centralized approach and the decentralized approach at all levels and providing solutions to bridge this gap. Social implications This paper provides implications to reduce corruption, increase transparency and give the opportunity to the largest number of private shareholders to participate in public procurement. Originality/value Although there is some literature on centralized and decentralized public procurement, there is a lack or scarcity of research and academic articles on this subject (Patrucco et al., 2017). This paper attempted to do so by filling this gap in this area of research.

Author(s):  
Azamat Akramov ◽  
◽  
Rano Isakovna Mardanova ◽  

The experience of Western countries with a developed market infrastructure shows that the public procurement system naturally became an integral part of the sphere of internal commodity exchange of certain types of products and services and one of the mechanisms for maintaining competition and a liberal way of doing business. The objective basis for the existence and progressive development of the public procurement system in the national economy of many countries is the fact that in the process of fulfilling their target functions, individual government departments and organizational structures of any of them are forced to face the problem of material and technical support both for the implementation of state and local programs, and for the implementation of their current activities. As a rule, it is solved by purchasing the necessary material and intangible resources, goods, works and services through purchases, called state, in the process of specially organized competitive bidding. The purpose of this article is to show the experience of developed countries in the implementation of public procurement.


Author(s):  
O.A. Lahovska ◽  
S.F. Lehenchuk ◽  
S.V. Svirko

Public procurement is a complex process. With the help of public procurement, governments and government agencies purchase products, services, work, creating expenditures of the state budget and taxpayers. The purpose of implementing the e-procurement system was to reduce these costs and overcome the corruption component in this area. However, there are still many issues related to the inefficiency of certain components of this system. It is determined that domestic scientists identify a narrow range of benefits of the public procurement system, which is reduced to overcoming corruption and saving budget funds. The domestic scientists identify a narrow range of benefits from the use of public procurement. This is overcoming corruption and saving budget funds. In contrast, the foreign scientists see the public procurement system as an effective tool for sustainable development, innovation. The article analyzes the shortcomings and weaknesses of public procurement at each stage of their implementation, which allows identifying the main areas of improvement of the public procurement system, and summarizes the main advantages.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Temidayo Akenroye ◽  
Jonathan D. Owens ◽  
Adekunle Sabitu Oyegoke ◽  
Jamal Elbaz ◽  
H.M. Belal ◽  
...  

Purpose This study aims to examine the causes of small and medium-sized enterprises (SMEs) disinclination towards subcontracting in public sector markets. Previous studies have revealed that UK SMEs are reluctant to do business with the public sector through the subcontracting route, but the reasons for this lack of enthusiasm have not been widely researched. Design/methodology/approach Drawing on semi-structured interviews with SMEs competing for public contracts in North West England, a qualitative study was performed, from which several themes emerged. Findings The findings were synthesised into a framework underpinned by attribution theory, to portray situationally and dispositionally caused factors that were used to interpret SMEs’ behaviour. Social implications The findings can guide policy development and government interventions in developed and developing countries, aimed at using public procurement as a policy tool to develop the small business sector. Originality/value This paper contributes in a unique way to an emerging discourse on how subcontracting can facilitate the access of SMEs to government procurement spending. It adds to knowledge regarding the explanatory power of attribution theory – from its base in social psychology.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raúl Aparicio-Arias ◽  
Jenny Moreno

Purpose This paper aims to explore public procurement frameworks during disasters in Chile and New Zealand, identifying the factors that affect government procurement performance in disaster response. Design/methodology/approach This research adopted a case study methodology following a qualitative approach. Semi-structured interviews were conducted with government officers from Chile and New Zealand who had practice-relevant knowledge of public procurement and disaster management. Data was complemented by document reviews, including government reports and the records of disaster management organizations. Findings This paper finds public procurement to be negatively affected by several factors during disasters, including celerity and flexibility of response; market and supplier restrictions; pressures over procurement teams; centralism of procurement structures; lack of technical knowledge; competition and crossover of agreements; corruption; and price variations. Practical implications This paper includes policy recommendations on how to increase the effectiveness of disaster management and public procurement systems in countries at high risk of earthquakes and other disasters. Social implications This paper can help public procurement officers to provide a better response during disasters, supplying the goods and services required to the affected population in a timely and effective manner. Originality/value This paper addresses a gap in research by identifying factors which negatively impact government procurement and response during a disaster.


2019 ◽  
Vol 9 (3) ◽  
pp. 34-46
Author(s):  
Ionel PREDA ◽  
◽  
Cezar-Petre SIMION ◽  

Taking into account the very large sums being spent through the Romanian public procurement system (approximately 8% of the GDP), analysing the award criteria used in the procurement procedures is an important element that influences the achievement of the economic and social efficiency of procurement. The article describes the criteria for public procurement award in Romania, focusing on the most used criterion, namely the lowest price. It also presents the advantages and disadvantages of using this criterion, statistical situations at national and European level, the difficulties encountered in using this criterion by contracting authorities and the vulnerabilities of tenderers participating in the procurement procedures which use for the award the criterion under consideration.


2021 ◽  
Vol 12 (34) ◽  
pp. 106-132
Author(s):  
Viktoriia Holubieva ◽  
Yuriy Pyvovar ◽  
Igor Andrushchenko ◽  
Andrii Honchar

The purpose of the study is to characterize the System of national legal regulation of public procurement of Ukraine, to determine the features of the impact of international law on the Ukrainian procurement system, as well as ways to improve it. The research methodology is based on an integrated intersectoral approach and a comparative approach. The effectiveness of the current legislation of Ukraine on public procurement was determined by means of the "ex post" assessment methodology, and the methodology of legal monitoring, including as a result of the study of court decisions. The results showed that the legal regulation of government procurement on the territory of Ukraine is undergoing significant changes, in connection with the harmonisation of legislation to international (worldwide and regional) standards; the majority part of the WTO GPA and Association Agreement provisions in the field of government procurement has already been implemented or is being implemented by Ukraine. Indeed, taking into account the access to the EU market obtained within the GPA framework, Ukraine has already not so many external incentives for the full compliance with the obligations to harmonize the legislation under the Association Agreement than it was expected at its signing.


Author(s):  
A. A. Bakulina ◽  
R. L. Rovbel

Analysis of the legal and economic support of the public procurement system and the functions of control and monitoring procedures in the modern model of public procurement in the Russian Federation is an important issue in the region of competition. The main innovations and weaknesses in the regulations and results of control procedures at the planning, placement, evaluation and control stages were identified. Conclusions and recommendations on improving the effectiveness of the public procurement control system in Russia are developed through the integration of modern valuation tools and the inclusion of control measures in the process, the formation of experts' conclusions regarding the justification and confirmation of the cost characteristics of the contract in government procurement and procurement of state corporations. The specifics of the institutionalization of control processes in the mechanism of public procurement are considered.The theoretical and practical principles of improving the system of control over public procurement in Russia are studied. The approach to the formation of proposals on additional regulation of control procedures in the contract system is formulated with the aim of providing a qualitative effect on procurement processes.


Subject The impact of the new Mexico City airport plans on transparency efforts. Significance Mexico City's new international airport is a test of government efforts to make public procurement for megaprojects less corrupt. The Ministry of Transport (SCT) on January 9 signed a memorandum of understanding with the OECD in order to foster integrity, transparency and best practice in the public bidding processes surrounding a project that will require an investment of more than 120 billion pesos (8 billion dollars), making it one of the world's largest infrastructure projects. Impacts The OECD's assistance will be insufficient to guarantee transparency and accountability without improving legal enforcement. State-level procurement processes are more problematic than federal ones due to defective legal frameworks and lack of qualified personnel. The government needs to be seen doing more to buttress accountability in areas going beyond public procurement.


2020 ◽  
Vol 16 (5) ◽  
pp. 860-884
Author(s):  
V.G. Kogdenko ◽  
A.A. Sanzharov

Subject. The article deals with the analysis of suppliers in the public procurement system based on reasonable prequalification parameters. Objectives. The aim is to test the hypothesis about strong reputation characteristics of the winners in the public procurement system and develop a methodology for assessing the reputation of suppliers for prequalification purposes. Methods. We employ general scientific principles and methods of research, like abstraction, generalization of approaches used by domestic and foreign authors for prequalification and assessment of reputation of public procurement participants. Results. To test the hypothesis, we calculated four groups of indicators on corporate, financial, market, and social components of reputation. The methodology was tested on the data obtained from SPARK-Interfax and SPARK-Marketing information resources. Conclusions. The study revealed that not all reputational characteristics of public procurement winners can be regarded as high level. In terms of the corporate component, it is the low level of share capital, indicating the mistrust on the part of owners and their reluctance to invest in the business, and the low percentage of non-current assets. In terms of the market component, it is a low sales growth rate, as well as low return on sales. As to the financial component, it is a low capitalization of winners, low share of long-term debt capital and low credit limit. With respect to the social component, it is a below-average tax burden.


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