Factors Influencing Final Price of Public Procurement: Evidence from Slovakia

Grega, Matúš; Němec, Juraj

doi:10.1016/s2212-5671(15)00768-6

Cited by 21 publications

(13 citation statements)

References 5 publications

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“…His results are similar to others: the calculated price decrease for a second tenderer was 7.7%, for a third 8.9%, for a fourth tenderer 11.75% and the peak 16.9% was achieved in PP with five tenderers. Other papers related to the topic-and with similar findings-by Grega and different co-authors are for example Grega et al [33], Nemec et al [34], Nemec et al [35], Sumpikova et al [36] 2016 and Grega and Nemec [37,38].…”

Section: Public Procurement In Health Carementioning

confidence: 60%

Competition in Public Procurement in the Czech and Slovak Public Health Care Sectors

et al. 2020

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Sustainability of health financing is a critical issue for all countries, especially now in the COVID-19 period. The final level of achievements of critical public health goals is connected not only with the efforts of the people involved, but also with the availability of funding to cover the costs of the actions needed. One of the “internal sources” providing more resources to cover public health care costs is effective public procurement in the health care sector. According to existing scientific literature, a low rate of competition represents one important factor that has a direct negative impact on the efficiency of public procurement. The aim of our article is to examine the degree of competitiveness of public procurement in the Czech and Slovak health care systems and its impact on the final price of a contract. The research fully attested the findings of those studies carried out so far – the higher the number of tenderers, the lower the final price, even in the Czech and Slovak health sectors. However, the average number of tenderers is only around two and in the Czech Republic for more than half of the tenders only one bid was submitted.

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Section: Public Procurement In Health Carementioning

confidence: 60%

Competition in Public Procurement in the Czech and Slovak Public Health Care Sectors

et al. 2020

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“…The use of SPP MEAT may therefore result in additional costs for the supplier, which will be reflected in the final price of the contract. In other words, as in the case of the lowest price criterion, which leads to higher savings compared to MEAT (see e.g., Grega and Nemec, 2015) [28], the use of non-SPP MEAT has the same effect compared to SPP MEAT criteria. Contracting authorities are thus exposed to a "sustainability charge" in the form of increased costs caused by their requirements for the subject matter of the contract, which pursue "benefits that go beyond the mere acquisition of goods, services or works" [41] (p. 15).…”

Section: Discussionmentioning

confidence: 99%

“…However, due to the lack of market price data, as well as the extensive dataset, the estimated contract price was used to calculate the savings. The same approach has also been used by Nemec et al [28,36], Pavel [37], Kuhlman and Johnson [38], and Gavurova et al [39]. Another reason why we did not use market prices is the excessive heterogeneity of the data sample used, which contains data on procurement in several economic sectors.…”

Section: Methodsmentioning

confidence: 99%

“…Bergman and Lundberg [27] argue that price-quality scoring is inappropriate, because it is non-transparent and open to strategic manipulations as a result of depending on irrelevant alternatives. Nemec and Grega [28] used regression analysis to examine procurement award notices in Slovakia and found that using the lowest price leads to higher savings rather than using the MEAT criteria. Igarashi et al [29] point out that contracting authorities typically avoid preferring green criteria over conventional criteria.…”

Section: Introductionmentioning

confidence: 99%

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Sustainable Public Procurement in Central European Countries. Can It Also Bring Savings?

2020

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The efficiency of public resource use and its strategic framework with respect to sustainable public procurement policies, such as the most economically advantageous tender (hereafter MEAT), has become an important topic nowadays. Therefore, the study examines the determinants of savings creation within MEAT in Central European countries. It uses a dataset published in the Tenders Electronic Daily database in 2017–2018 about contract award notices and carries out a generalized linear model to study the determinants of savings creation within MEAT. The findings suggest that when services are procured within MEAT, the savings are considerably higher than compared to works. If the framework agreement takes place in a procurement process, the savings are significantly smaller. In cases where the subject of procurement is not co-financed by EU funds, the savings are higher than in the case that they are. If an open type of procurement is used, the savings are seemingly smaller than in cases where a non-open type of procurement takes place. When the contract is awarded to a single supplier, the savings are higher than otherwise. A higher number of total offers, as well as a higher number of offers from small and medium-sized enterprises, induce higher savings. It can be concluded that the use of sustainable public procurement subtly reduces the creation of savings.

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“…Micro fi rms estimated the rate below 5 %, while big companies around 15 %. Grega and Nemec (2015) stated that the impact of competitiveness on the results of the public procurement is very important in Slovakia. Besides that, they also proved the high importance of the usage of the lowest-price criteria and the EU funds co-fi nancing in the fi nal procurement price setting.…”

Section: Support For the Very High Level Of Indirect Transaction Costmentioning

confidence: 99%

Transaction Costs, Outsourcing, and the Public Procurement Review Process in the Czech Republic and Slovakia

Šumpíková

Ďurčeková

2019

NISPAcee Journal of Public Administration and Policy

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Public 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. Th e disputes stemming from confl icts between procuring authorities and proposers oft en 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 fi rm to represent the procuring authority in the review process. Th e 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. Th e focus is also on the impact the use of external law fi rms 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 fi rm 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. Th ere were no conclusive fi ndings regarding the impact of the outsourcing on the length of the review process.

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Factors Influencing Final Price of Public Procurement: Evidence from Slovakia

Cited by 21 publications

References 5 publications

Competition in Public Procurement in the Czech and Slovak Public Health Care Sectors

Competition in Public Procurement in the Czech and Slovak Public Health Care Sectors

Sustainable Public Procurement in Central European Countries. Can It Also Bring Savings?

Transaction Costs, Outsourcing, and the Public Procurement Review Process in the Czech Republic and Slovakia

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