scholarly journals The Impact of the Choice of Evaluation Criteria and the Type of Tender on the Awarding Public Contracts (in the Case of Construction Contracts at the Local Level in the Czech Republic)

Author(s):  
František Ochrana ◽  
Kristýna Hrnčířová ◽  
Michal Plaček ◽  
Milan Půček

Public procurement may be examined from different perspectives. Using the Czech Republic as an example, this study is devoted to examining the impact of decisions made by the contracting authority regarding a public tender on the tender process itself and on the outcomes of the tender. The contracting authority addresses a number of decision-making issues regarding public procurements. For example, it needs to decide between two types of criteria (choosing between a single-criterion evaluation or rather opting for several evaluation criteria). At the same time, the authority is free to choose among different types of award procedures while adhering to certain restrictions imposed by the Act on Public Contracts. Using a sample of 1,027 construction work contracts awarded in the Czech Republic, the study examines, in more detail, the impacts of individual choices made by the contracting authority (namely the type of evaluation criteria chosen and the type of procedure for awarding contracts) on the estimated and final price of public contracts. Recommendations on how to streamline the process of public procurement can be drawn from conclusions from the empirical analysis.

2015 ◽  
Vol 8 (1) ◽  
pp. 41-59 ◽  
Author(s):  
František Ochrana ◽  
Kristýna Hrnčířová

Abstract Through the institute of public procurement a considerable volume of financial resources is allocated. It is therefore in the interest of contracting entities to seek ways of how to achieve an efficient allocation of resources. Some public contract-awarding entities, along with some public-administration authorities in the Czech Republic, believe that the use of a single evaluation criterion (the lowest bid price) results in a more efficient tender for a public contract. It was found that contracting entities in the Czech Republic strongly prefer to use the lowest bid price criterion. Within the examined sample, 86.5 % of public procurements were evaluated this way. The analysis of the examined sample of public contracts proved that the choice of an evaluation criterion, even the preference of the lowest bid price criterion, does not have any obvious impact on the final cost of a public contract. The study concludes that it is inappropriate to prefer the criterion of the lowest bid price within the evaluation of public contracts that are characterised by their complexity (including public contracts for construction works and public service contracts). The findings of the Supreme Audit Office related to the inspection of public contracts indicate that when using the lowest bid price as an evaluation criterion, a public contract may indeed be tendered with the lowest bid price, but not necessarily the best offer in terms of supplied quality. It is therefore not appropriate to use the lowest bid price evaluation criterion to such an extent for the purpose of evaluating work and services. Any improvement to this situation requires a corresponding amendment to the Law on Public Contracts and mainly a radical change in the attitude of the Office for the Protection of Competition towards proposed changes, as indicated within the conclusions and recommendations proposed by this study.


2017 ◽  
Vol 15 (1) ◽  
pp. 67-92 ◽  
Author(s):  
Michal Plaček

The impact of decentralization on efficiency in the production of public goods and services has been described by the current scientific discourse in some detail. In this article, we focus on an analysis of the impact of the factor of decentralization as well as other selected factors on efficiency in public procurement. We view the term efficiency to be the ratio between the tendered and the estimated price, but also as procedural correctness and legality, as it is reflected in the administration of complaints, investigations, and findings regarding violations of the law by the supervising authority. We then describe the phases of bidding and post-bidding. For empirical research, we used linear regression and logistic regression. These methods are applied to data regarding public procurement for the years 2010-2014. The results show that, among the contracting authorities at the different levels of decentralization, there were statistically significant differences which we can explain through the different levels of accountability, economies of scale, as well as the qualifications of the workers of the contracting authority.


Pedagogika ◽  
2016 ◽  
Vol 66 (2) ◽  
Author(s):  
Dominik Dvořák ◽  
Jana Straková

Abstrakt: Reformy založené na zavádění tržních principů do vzdělávání zatím spíše zklamaly očekávání, že povedou k celkovému zlepšení vzdělávacích výsledků žáků. Mezinárodní šetření PISA 2012 tento poznatek rovněž potvrdilo. Avšak v případě České republiky byly publikovány výsledky uvádějící, že i po zohlednění socioekonomických a demografických rozdílů mezi žáky a dalších relevantních faktorů na úrovni škol dosahují lepších výsledků v matematice žáci v těch školách, které jsou vystaveny větší lokální konkurenci. Náš článek představuje kritickou revizi těchto výsledků. Vyšli jsme ze stejných datových souborů z šetření PISA a použili jsme dvouúrovňové modely, kde první úroveň byla žákovská a druhá školní. Pokud model (na rozdíl od postupu uplatněného autory šetření PISA) zohledňovat skutečnost, že ve vzorku jsou zastoupeny základní školy, víceletá gymnázia a střední školy, pak zdánlivý účinek konkurence mezi školami vymizel. Konkurence mezi školami jednoho typu tedy ani v České republice nevede k lepším znalostem a dovednostem žáků v matematice. Klíčová slova: volba školy, konkurence mezi školami, výsledky žáků, matematika, Česká republika, PISA.Klíčová slova: volba školy, soutěž mezi školami, výsledky žáků, matematika, Česká republika, PISAAbstract: Several studies have shown that market-based reforms of education, on average, do not improve the pupil performance across or within national school systems. The PISA 2012 survey found, however, that in the Czech Republic the schools that compete with other neibourghing schools for pupils tend to perform better in mathematics even after accounting for the socio-economic and demographic background of pupils and for relevant school characteristics (OECD, 2013). In our study, we re-evaluate this result. The impact of school variables on student achievement was studied using the PISA datasets and two-level models with pupils at the first level and schools at the second level. After accounting for different types of secondary schools in the Czech school sample, the apparent positive effect of school competition disappeared.Keywords: school choice, school competition, achivement, mathematics, Czech Republic, PISA


Envigogika ◽  
2014 ◽  
Vol 9 (2) ◽  
Author(s):  
Markéta Pluháčková

This article deals with the topic of environmental hazards within geographical education. It describes how issues of environmental hazards at the local level can be communicated in education. The suggested method is project teaching divided into three levels. The first level aims at imparting general knowledge about a hazard and its appropriate terminology. The second level is based on protection against the hazard, and the last part deals with appropriate protection against the hazard in future. As an example, floods were chosen as a hazard that is very significant in the Czech Republic. The project presented here was partly performed using the Google Earth application that presents theoretical information applied in practice and includes some field work focused on the impact of previous floods. This project has been undertaken twice. An evaluation of the results can be found in the final part of this article.


2019 ◽  
Vol 12 (2) ◽  
pp. 233-250
Author(s):  
Markéta Šumpíková ◽  
Ina Ďurčeková

AbstractPublic procurement is a crucial activity undertaken by the public sector. However, public procurement entails a wide range of transaction costs. While many papers focus on the ex-ante transaction costs, it is equally important to evaluate the types of ex-post transaction costs. The disputes stemming from conflicts between procuring authorities and proposers often bring additional costs to both parties. One of the ways to ensure that the procuring authority wins the dispute is using the services of an external law firm to represent the procuring authority in the review process. The aim of the paper is to examine the extent of the use of external law services in the public-procurement review process by procuring authorities and proposers in Slovakia and in the Czech Republic. The focus is also on the impact the use of external law firms in the review process may have on the length of the review process and the outcome of the dispute. Our results suggest that while the use of the external law firm may lead to a higher success rate of the review process on the side of a procuring authority, the same does not apply to proposers. There were no conclusive findings regarding the impact of the outsourcing on the length of the review process.


2021 ◽  
Vol 22 (2) ◽  
pp. 267-276
Author(s):  
Karel Brychta

This paper is produced as an exploratory study with the aim of carrying out a taxonomy of construction companies operating in the Czech Republic, taking into account the type and number of concluded public procurement contracts. In processing the multidimensional matrix describing the companies, a cluster analysis was used to identify the dependence between the set of variables. Results of the analysis suggest that the prevailing types of public procurement procedures include negotiated procedure without prior publications, open procedure and simplified below-threshold procedure, while from the point of view of the contracted value, the open procedure is of the highest importance. As for the cluster analysis conducted for the types of public procurement analysis, one can conclude that there is a relation between the number of public contracts concluded and the scope of the types. On the other hand, the extension of the conducted cluster analysis did not provide any conclusive evidence regarding the relationship between the types of public procurement contracts and the types of holding structures. Such a study has not been realised in the Czech Republic yet. Thus, the results of this study provide a background for research in the area of public procurement in the Czech Republic. Some potential research questions have been stated in the discussion part of the paper.


2019 ◽  
Vol 25 (4) ◽  
pp. 365-385
Author(s):  
Michal Plaček ◽  
Jana Soukopová ◽  
Gabriela Vaceková ◽  
František Ochrana ◽  
Martin Schmidt

This article deals with the phenomenon of repeated contracts, specifically the effect of trust in public contracts. Our main objective is to identify the factors that influence the concluding of repeated contracts and to verify whether repeated contracts lead to increases in prices. We use a complex dataset of public procurement of municipalities in the Czech Republic for the period of 2014-2017, which covers more than 4,000 public contracts. This range of data allows a larger number of variables to be applied, including specific independent variables concerning municipalities, such as the size of the municipality. The data allow us to study this subject by means of both a general model tested on all public contracts and a partial model applied to public works. The presented results of quantitative econometric models from the data obtained from the awards of public contracts in the municipalities of the Czech Republic show that the fact of whether it was a repeated contract or a contract performed by a new (unknown to a contracting authority) supplier affected the chance of winning a contract.


Author(s):  
Luboš Dufek

In the Czech Republic ca. 13% of the GDP, is spent every year on public procurement. More money each year has to be spent by the contracting authorities and private subjects for the public procurement to even work. This paper focuses on measuring private transaction cost of public procurement in the Czech Republic. In the first section of this paper, we present data used for our analysis and methods used for achieving our goals. In the second section, we summarise the results. Average transaction cost of one proposal is CZK 22 489. Weighted average relative transaction cost is 0.25% of the contract value. We estimate the total transaction cost of public procurement in the Czech Republic to be almost six billion CZK, further we estimate possible cost reductions of these cost in the case of increased effectiveness to be between 500 million and CZK 1.84 billion. The market sector, contract prices, size of the firm and different types of contracting authorities have all a significant influence on the transaction cost. A comparison of our results to other empirical studies have been made and some interesting facts found out during research have been explained at the end of the second section.


2019 ◽  
Vol 9 (1) ◽  
pp. 151-158 ◽  
Author(s):  
Tomas Hanak ◽  
Jana Korytarova

AbstractEfficient spending of public money is a crucial requirement of public procurement. This requirement is even more important in the case of public works contracts since construction projects are usually very costly. Accordingly, public authorities should manage the procurement process in an efficient way. The aim of this paper is to analyse municipal procurement practices focusing on small-scale public contracts for construction works. The Czech Republic is the study area for this analysis. Data concerning procurement practices were collected through a questionnaire survey and on the basis of available internal municipal directives that govern the procurement process. The results show that a majority of municipalities use internal directives and specify financial categories for small-scale public contracts. It has also been found that the majority of municipalities contract external consulting companies for specific contracts or subsidised public contracts. Directives usually concern the issue of responsibility and the approval procedure related to the public contract. Based on the research findings, general recommendations for awarding public contracts have been formulated. These findings can potentially contribute to the dissemination of best practices among contracting authorities in the Czech Republic.


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