scholarly journals Estimating the True Size of Public Procurement to Assess Sustainability Impact

2021 ◽  
Vol 13 (3) ◽  
pp. 1448
Author(s):  
Fatima Hafsa ◽  
Nicole Darnall ◽  
Stuart Bretschneider

Public procurement, the government’s purchase of goods and services, is an important tool to advance sustainability objectives. Since government is the largest consumer in the economy, it can have a sizable impact on the market by purchasing sustainably. However, its sustainability impact (both environmental and social) is undermined because the public procurement’s size is underestimated. Previous estimates of public procurement only consider contract-based purchases or non-defense purchases. In other instances, data are too limited to estimate government purchases appropriately. These factors lead to underestimations of the extent to which government purchasing can be leveraged to advance sustainability objectives. To understand the true impact of government purchases, we estimated the size of public procurement by considering all aspects of public procurement. We used this estimation to assess whether current measurement processes misrepresent the size of public procurement and identify key elements that may be missing from the current public procurement measures. We applied our estimate to four OECD countries, the U.S., the U.K., Italy, and the Netherlands for two years (2017 and 2018). Our results showed that that across all levels of government, public procurement as a percentage of GDP in the U.S., the U.K., Italy, and the Netherlands ranged between 19–24%, 13–56%, 3–10%, and 12–38%, respectively. Our findings revealed that governments have substantially greater market power than previously estimated, which can be leveraged to pursue sustainability goals. Our findings also illustrate systemic data challenges to how public procurement data are collected and analyzed.

2003 ◽  
pp. 68-80
Author(s):  
A. Dementiev ◽  
A. Zolotareva ◽  
A. Reus

The most important measures stimulating the increase of efficiency and effectiveness of budget expenditures on road construction are the improvement of pricing mechanisms and increasing efficiency of the procedures of government purchases of goods, works and services. The paper includes the analysis of main problems that arise in the process of government purchases and construction pricing with the reference to budget expenditure on road construction. It includes the review and analysis of international experience and possible measures of increasing the efficiency and effectiveness of government purchases and (road) construction pricing in Russia.


2020 ◽  
Vol 50 (6-7) ◽  
pp. 628-634
Author(s):  
Christopher L. Atkinson ◽  
Clifford McCue ◽  
Eric Prier ◽  
Allison M. Atkinson

The COVID-19 pandemic has placed remarkable stress on all aspects of society, from health care and the economy to the psychological well-being of communities. While the crisis is still playing out in the United States and around the world, it is nevertheless appropriate to begin to assess its impact. This article asks: What documentable public failures provide a deeper understanding of the U.S. government COVID-19 responses’ impact on supply chains? Case examples show that markets were adversely affected in ways that caused avoidable shortages of critical goods and supplies. Moreover, public procurement effectiveness was likely reduced by short-run efforts to obtain political advantage. The article begins with a brief review of disaster procurement, highlighting how public procurement professionals tried to respond to the COVID-19 pandemic. The next section delineates three politically led phenomena that adversely impacted procurement’s ability to acquire the needed goods and services, including a lack of cohesive strategy in acquiring essential personal protective equipment; preference for unproven drugs and magical thinking; and cozy relationships between the public and private sectors. The article concludes by discussing the centrality of public sector procurement professionals as a critical link for effective provision of government services, especially in times of crisis.


Author(s):  
Kanu Success Ikechi ◽  
Benedict Anayochukwu Ozurumba ◽  
Akuwudike Hilary Chinedum

This study investigated the effect of Public Procurement Act (PPA), 2007 in curbing corruption in public services in Nigeria. The research is prompted by the sheer waste of public resources in the process of public procurements which necessitated the enactment of the PPA in 2007. The operations of the Act requires constant appraisal in order to achieve the desired objectives, hence the main goal of this study. Convenience sampling technique was used to collect data from a sample of 50 staff from 3 select MDA’s operating at the FCT, Abuja. Questionnaires were used to collect data and this was administered through personal delivery. The survey questionnaire measured the different dimensions of corruption in public service in Nigeria. The research design used 2 scales to collect the data. The nominal scale was used to collect personal information about respondents while an open ended questionnaire format was used to measure the response of all dimensions on subject matter .Data analysis was performed with the aid of simple percentages and descriptive statistics. Result obtained establishes that the PPA has helped to curb corrupt practices, improved on transparency and accountability in procurement process. It has minimized discrimination in the awards of contract. It has also helped to facilitate the procurement of works, goods and services in the select MDA’s. Most of the respondents opined that they have adequate value for money in their procurements but that goods and services procured may not have been delivered on time. The major problems confronting procurement practice in some of the select MDA’s include lack of experienced staff and inadequate training. Thus, the study recommends a strong commitment to capacity building and the political will to implement the PPA at all tiers of government in Nigeria. The federal government should be determined in her resolve to fight corruption. This is very crucial for an effective public procurement practice in Nigeria


2015 ◽  
Vol 60 (05) ◽  
pp. 1550117 ◽  
Author(s):  
JOE-MING LEE ◽  
KU-HSIEH CHEN ◽  
CHIN-HO CHO

This paper examines the relationships among CO2 emissions, energy use, GDP, and financial development for 25 OECD countries over the 1971–2007 period. From the results of the panel FMOLS and the cross-sectional dependence regression, we do not find any support for the existence of the EKC for OECD countries. Moreover, the results present that the coefficient of financial development to CO2 emissions is negative and statistically significant for eight countries (Austria, Denmark, Germany, Ireland, the Netherlands, Norway, Portugal, and the U.S.). The findings of this study thus show that financial development can help EU countries to adjust their CO2 emissions.


2021 ◽  
Vol 2 (517) ◽  
pp. 35-40
Author(s):  
O. I. Laiko ◽  

The article is concerned with topical issues of the State regulation of public procurement in Ukraine in the context of reforms and integration processes. The conceptual principles of regulation of the public procurement system have been formulated, taking into account the requirements and challenges of modern processes of reforms of the national economy and the implementation of the European integration vector. The public procurement system is considered as a new institutional unit in the national economy – the market for goods and services to the State-owned institutions and organizations with the involvement of budgetary funds. The significance of the public procurement system for the country’s economy as an environment for financing and implementing entrepreneurial initiatives aimed at creating high-quality goods and services, which is characterized by volumes equal to 15% of GDP, is substantiated. The article is aimed at defining the theoretical-conceptual and applied principles of the State regulation of the public procurement system in Ukraine in the context of efficient implementation of reform goals and taking into account the impact and challenges from the active participation of the national economy in the international distribution of labor in the course of integration processes with the EU countries. The article defines the key directions of the State policy on the regulation of the public procurement system, which include: stimulating the economic development of the entrepreneurial sector and overall economic growth on the basis of sustainability and balance; support for the production of domestic goods and services with high added value; stimulation of production of goods and services using local resources; stimulating the creation by domestic producers of both goods and services of cooperation associations in order to use the opportunities for the distribution of labor to create more competitive products; supporting the formation of an economic basis for the development of territorial and economic entities in the regions of Ukraine. As for the above defined directions of the State regulation of the public procurement system in Ukraine, appropriate measures have been proposed, the implementation of which is expected to contribute to the strengthening of the national economy and does not contradict the provisions of ratified international agreements.


JASSP ◽  
2021 ◽  
Vol 1 (2) ◽  
pp. 103-113
Author(s):  
Adam Khafi Ferdinand ◽  
Rinaldy Amrullah

Presidential Regulation Number 12 of 2021 concerning amendment the Presidential Regulation Number 16 of 2018 (Presidential Regulation 12/2021) was the government efforts for micro small-level enterprises (MSEs) and cooperatives to be involved in the public procurement of goods and services. However, it still needs to be anticipated because there are always irregularities that usually occur, namely corruption. This research aims to determine how the amendment of the public procurement regulation in the Presidential Regulation 12/2021 especially for MSEs and cooperatives, and also how to assess the Presidential Regulation 12/2021 can reduce the potential for corruption in the process of public procurement. This research uses a normative method with a comparative approach and a statutory approach. The results of this research indicate the Presidential Regulation 12/2021 are the elimination of medium-level enterprises, the government's obligation to allocate a minimum budget of 40%, and also increase the budget ceiling for MSEs and cooperatives up to IDR 15 billion. E-Procurement for MSEs and cooperatives still has the potential for corruption, but with the new policy in the form of competency certification, and if there is an increase in regulations from the National Procurement Board (LKPP) in terms of provider qualifications, procurement can produce quality and efficient products.  Keywords: Cooperatives, Potential of Corruption, Presidential Regulation 12/2021, Government’s Procurement Goods and Services, Small-Level Enterprises (MSEs)


Author(s):  
K. A. Ionkina ◽  
A. A. Konovtsev ◽  
O. A. Moskvitin

Among the most highly sought measures of public support of businesses are various preferences to small-scale businesses as part of the public procurement of goods and services. In light of the new coronavirus pandemic there is an active discussion of the measures related to supporting the small- and medium-scale business entities with the use of the public procurement institution. However, taking such measures may presuppose significant inherent risks, including those related to potential or real limitation of competition. In their work the authors analyze the global experience of preferential programs for small- and medium-scale business entities through public procurement, as well as specific features peculiar to the Russian legal order which may be of importance during introduction of the said measures.


Author(s):  
Guillermo Burr Ortuzar ◽  
Elena Mora Sevillano ◽  
Claudio Loyola Castro ◽  
Catalina Uribe

ChileCompra (CC) is the procurement authority of Chile. Purchases are made independently by the public entities, but CC is responsible for market regulation and management of the electronic platform, where transactions are made. ChileCompra was launched on 2003, within a deep State modernization process which started by the end of the 90s. ChileCompra was born with the mission of generating a substantial change in public procurement, as the previous system was neither responding to market needs nor to the accountability which citizens demanded. The objective was the creation of a transparent, efficient, and – most of all - accessible system, which would create equal business opportunities to companies of all sizes, especially for micro and small ones. ChileCompra manages the public procurement market, facilitating the acquisition of goods and services for public authorities; with high levels of transparency and equal opportunities for every enterprise, especially the smallest ones. Through the electronic platform www.mercadopublico.cl – which is the biggest electronic marketplace in the country – public organizations are connected to suppliers within a transparent and efficient system based on a solid regulatory framework whose governing principles are universality, accessibility, and non-discrimination. ChileCompra is currently a strong system, with high levels of transparency and efficiency. As other public procurement national systems, ChileCompra is now facing second generation challenges, like the strengthening of the public procurement role in the socio economic national development. This chapter focuses on the evolution of the Chilean public procurement system, lessons learned and challenges, and the conditions to make it a complete electronic procurement process.


Author(s):  
Margarita  V. Kravtsova

The work is devoted to the search for answers to the question: “Are there any differences in the public procurement of customers who provide services of different quality?”. The article identifies the stages of the hospital procurement process in the contract system and highlights the main customer strategies used in the auction. The results of an independent quality assessment are examined and comparative hospital characteristics with low and high quality rating are conducted. The hospital needs according to the types of purchases and their annual volumes of contracts are analyzed. The advantages of competitive procedures are determined and the key factors affecting the level of competition with possible risks of unreliable execution of contracts are identified. The empirical study is based on the database which includes 5390 contracts of 2 hospitals in Moscow for years of 2011–2017. Using the methods of econometric analysis, in particular, the method of least squares and the difference in the average, the hypothesis is tested the high competition has a positive effect on the quality of medical services. The constructed regression models show that the customer providing high quality services has low competition and small rebates at the auction. At the same time there are more contract terms, delays in the supply of goods and services as compared with the customer providing low quality services. Thus it was found that the underestimation of competition at the auction indicates the desire of the hospital to guarantee a higher quality of medical services to patients while as aggressive bids of participants lead to the supply of poor purchases. The results of the study may be useful for the competent authorities in the development of legal acts for the participants of the contract system in the field of health procurement.


Author(s):  
William A. Muir ◽  
Daniel Reich

The U.S. government procures more than $500 billion annually in goods and services on public contracts, which it classifies using a hierarchical product and service taxonomy. Classification serves several purposes, including transparency in the use of taxpayer funding; reporting, tracing, and segmenting government expenditures; budgeting; and forecasting. Government acquisition personnel have historically performed these classifications manually, resulting in a process that is time-consuming and error-prone and offers limited visibility into government purchases. The problem faced is not unique to the public sector and is common across retail, manufacturing, and healthcare, among other settings. Using almost 4 million historical data records on governmental purchases, we fit a series of classifiers and demonstrate (a) superior performance when explicitly modeling the hierarchical structure of information domains through the use of top-down strategies and (b) the effectiveness of character-level convolutional neural networks when textual inputs are terse and contain irregularities such as abnormal character combinations and misspellings, which are common in government contracts. Our machine learning models are embedded in multiple software applications, including a web application that we developed, used by federal government personnel and other contracting professionals.


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