Public procurement failure: The role of transaction costs and government capacity in procurement cancellations

Casady, Carter B.; Petersen, Ole Helby; Brogaard, Lena

doi:10.1080/14719037.2023.2231945

Cited by 15 publications

(1 citation statement)

References 60 publications

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“…Since our analysis only considers auctions that were concluded by a contract (the public availability of which is our main focus), we do not consider another possible measure of efficiency: contract cancellation. 21 Casady et al (2022) had addressed this measure recently focusing on Danish procurement data and found out that the most frequent reasons for cancellation were wrong contract specifications and “lack of vendor competition”, among other factors. In our case, the information available shows that around 18% of auctions per year were cancelled (Ministry of Regional Development, 2020); this is a non-negligible share that presents an interesting avenue for future research in the Czech Republic, too.…”

Section: Open Questions and Issuesmentioning

confidence: 99%

Transparency Meets Efficiency: The Case of Public Procurement in the Czech Republic

Bolcha

Vozárová

Fanta

2023

Public Works Management & Policy

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This article focuses on transparency and contract publication in public procurement. Our main objective is to identify statistical associations between situations when a resulting contract is not publicly available and the outcomes of the procurement, esp. efficiency. By merging multiple databases and web scraping, we have created a unique dataset covering nearly 14,000 public procurements in the Czech Republic during the period 2018-2020. This dataset and recent legislation enable us to run empirical tests of new hypotheses, as well as control for variables already established in the empirical literature, such as procurement type, regime and authority. The results of our quantitative econometric models show that for selected types of projects, the unavailability of the contract is associated with smaller price savings as well as with more frequent single bid outcomes. For all types of projects, we found that failure to publish project prices is positively associated with single bid outcomes.

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Section: Open Questions and Issuesmentioning

confidence: 99%