To competitively tender or to negotiate – Weighing up the choices in a mature market

Wallis, I; Bray, David Barton; Webster, Heather

doi:10.1016/j.retrec.2010.07.012

Cited by 36 publications

(17 citation statements)

References 4 publications

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“…A tendency to cost convergence between competitively tendered contracts and performance-based negotiated contracts has been observed in Australia (Wallis et al, 2010). This underlines that the two approaches may be alternative, particularly when monopolists operate in distinct geographic areas (Armstrong and Sappington, 2006 petitive tendering regime appear to be the more e¢ cient as compared to public bus companies under …xed contracts and cost-plus contracts.…”

Section: Competitive Tendering Versus Performance-based Negotiation Imentioning

confidence: 93%

“…Second, in most of the cases, only …rst round effects net of administrative costs are reported. However, costs of retendering may increase due to unreasonable low initial tender prices and a decreasing number of competitors (Wallis et al, 2010;Hensher and Stanley, 2010). Also, competitive tendering may generate administrative costs to operators and regulators (Hensher, 1988;Saussier et al, 2009;Gil and Marion, 2012;Yescombe, 2007).…”

Section: Competitive Tendering Versus Performance-based Negotiation Imentioning

confidence: 99%

“…Finally, service quality seem to be much more di¢ cult to specify in competitive tendering contracts (Hensher and Stanley, 2008;Tadelis and Bajari, 2006). Wallis et al (2010) underline that the choice between competitive tendering and performance-based negotiation crucially depend on speci…c circumstances.…”

Section: Competitive Tendering Versus Performance-based Negotiation Imentioning

confidence: 99%

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Competitive tendering versus performance-based negotiation in Swiss public transport

Filippini

Koller

Masiero

2015

Transportation Research Part A: Policy and Practice

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The purpose of this study is to assess di¤erences in the levels of cost e¢ ciency of bus lines operated under competitively tendered contracts and performance-based negotiated contracts. Following the revision of the Swiss railways act in 1996, regional public authorities were given the choice between two di¤erent contractual regimes to procure public passenger transport services. We directly compare the impact of competitive tendering and performance-based negotiation by applying a stochastic frontier analysis to the complete dataset of bus lines (n=630) operated by the main Swiss company (Swiss Post) at the same time (in 2009) throughout the country. The overall results show that the di¤erences in the levels of cost e¢ ciency between the two contractual regimes are not signi…cant. Our …ndings are in line with recent evidence of cost convergence between competitive tendering and performance-based negotiation, and suggest that the practice of using both contractual regimes is challenging for the operators in terms of competitive pressure. The threat of competitive tendering may have a disciplining e¤ect on negotiation since it prevents bus companies from bargaining inadequate rents and inducing asymmetric information advantages.

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Section: Competitive Tendering Versus Performance-based Negotiation Imentioning

confidence: 93%

Section: Competitive Tendering Versus Performance-based Negotiation Imentioning

confidence: 99%

Section: Competitive Tendering Versus Performance-based Negotiation Imentioning

confidence: 99%

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Competitive tendering versus performance-based negotiation in Swiss public transport

Filippini

Koller

Masiero

2015

Transportation Research Part A: Policy and Practice

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“…However, the potential negative consequences of tendering should also be considered, such as concession/ franchise failure, contract rigidity scuppering innovation and the costs of the tendering process for bidding companies. Nevertheless, tendering the operation of the system can increase the competitiveness of the bids and, if not undertaken previously, can provide the local authority with a better understanding of the costs required to run the system at the increased level of efficiency [36]. However, research undertaken by ERRAC and the UITP found that 17 % of the urban rail systems in Europe are operated without a public service contract, and of the remaining 83 %, only 17 % of those contracts were awarded after having been put out to tender, the rest being directly awarded [37].…”

Section: Competitive Tenderingmentioning

confidence: 99%

The Circumvention of Barriers to Urban Rail Energy Efficiency

Batty

Palacín

2015

Urban Rail Transit

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As energy prices rise, urban rail energy efficiency becomes even more important. Many technological, operational and policy-based energy efficiency measures are well known and can have a notable positive effect on the urban rail systems. However, these measures can remain unimplemented. This lack of action can often be attributed to a variety of conflicting stakeholder opinions and a lack of knowledge transfer. This paper firstly focusses on the energy efficiency requirements of various stakeholders, before discussing about how such conflicts can be circumvented to ensure the success of future energy efficiency projects.

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“…Fees for using road infrastructure (Farrell, 1999), (Storchmann, 2001) and (Small and Gomez-Ibanez, 1998 Income tax for legal entities and natural persons (Wallis et al, 2010) and (Beck et al, 2011), Property tax (Ubbels and Nijkamp, 2002) Parking fees (Predki and Wilk, 1999).…”

mentioning

confidence: 99%

The Competitiveness of Public Transport

Poliak¹,

Poliaková²,

Mrnikova³

et al. 2017

JOC

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Examining the competitiveness of public transport plays an important role because through public transport, the transport of passengers to schools, public healthcare establishments and work is ensured. In addition, transportation for vulnerable groups of passengers (students, seniors) is provided. On the other hand, public transport constitutes a financial burden on public budgets. The aim of this paper is to point out that public transport does not have an equal status in the transport market within the European Union. In the states of Central and Eastern Europe, public transport had a dominant position in the transport market in the 90s. Nowadays, the market share is declining, particularly in the bus transport, with the rising costs for public budgets regarding an increase in individual motoring. The aim of this paper is to highlight the possibilities of increasing the competitiveness of public transport by integrating different components of public transport. Another aim is to define the possibilities of financing public transport. Keywords: competitiveness, transport, passenger transport, financing, source JEL Classification: R48, H40 INTRODUCIONThe EU transport strategy prefers the transport of passengers by public passenger transport to individual transport because the use of public passenger transport results in meeting all the goals of the EU strategy in the field of road safety. It relates mainly to the stabilization of the increased road transport claims on infrastructure. This expansion is problematic especially in built-up areas. Construction of a new expressway infrastructure caused by an increasing transport operation is a long-standing problem due to the ageing of population in the EU. The support of public passenger transport brings a lower fuel consumption. This is the way how to attain another objective of the EU strategy in the field of transport, which is the reduction of the EU's dependence on crude oil as a raw material that needs to be imported to the EU. Emission of air pollutants is another strategic goal that is fulfilled due to a lower diesel fuel consumption (Konečný at all, 2016). Based on the considerations from above, it has been concluded that the strategic objectives of the EU transport policy are achieved when population use the public passenger transport. In this regard, it has to be noted that it is necessary to support the public passenger transport and its competitiveness in relation to the individual automobile transport , (Simionescu, 2016). The aim of this paper is to identify the importance of public passenger transport and to define the effective method to increase public transport competitiveness. The increasing fare being dependent on an increasing transport service quality causes a decrease in transport service demand. The price elasticity of transport demand for public mass transport is -0.32 (Konečný at all, 2016), therefore, the aim Journal of CompetitivenessJournal of Competitiveness of the paper is to except the optimization of transport service and to...

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To competitively tender or to negotiate – Weighing up the choices in a mature market

Cited by 36 publications

References 4 publications

Competitive tendering versus performance-based negotiation in Swiss public transport

Competitive tendering versus performance-based negotiation in Swiss public transport

The Circumvention of Barriers to Urban Rail Energy Efficiency

The Competitiveness of Public Transport

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