Thais international handbook of public procurement public administration and public policy

Handbook on Public Budgeting and Financial Management, edited by Jack Rabin and Thomas D.. He served as a director of the School of Public Administration at Florida Atlantic University

International Handbook

of Public Procurement

EVAN M BERMAN

Huey McElveen Distinguished Professor Louisiana State University Public Administration Institute Baton Rouge, Louisiana

1 Public Administration as a Developing Discipline, Robert T Golembiewski

2 Comparative National Policies on Health Care, Milton I Roemer, M.D.

3 Exclusionary Injustice: The Problem of Illegally Obtained Evidence,

Steven R Schlesinger

5 Organization Development in Public Administration, edited by Robert T Golembiewski

and William B Eddy

7 Approaches to Planned Change, Robert T Golembiewski

8 Program Evaluation at HEW, edited by James G Abert

9 The States and the Metropolis, Patricia S Florestano and Vincent L Marando

11 Changing Bureaucracies: Understanding the Organization before Selecting

the Approach, William A Medina

12 Handbook on Public Budgeting and Financial Management, edited by Jack Rabin

and Thomas D Lynch

15 Handbook on Public Personnel Administration and Labor Relations, edited by

Jack Rabin, Thomas Vocino, W Bartley Hildreth, and Gerald J Miller

19 Handbook of Organization Management, edited by William B Eddy

22 Politics and Administration: Woodrow Wilson and American Public Administration,

edited by Jack Rabin and James S Bowman

23 Making and Managing Policy: Formulation, Analysis, Evaluation, edited by

G Ronald Gilbert

25 Decision Making in the Public Sector, edited by Lloyd G Nigro

26 Managing Administration, edited by Jack Rabin, Samuel Humes, and Brian S Morgan

27 Public Personnel Update, edited by Michael Cohen and Robert T Golembiewski

28 State and Local Government Administration, edited by Jack Rabin and Don Dodd

29 Public Administration: A Bibliographic Guide to the Literature, Howard E McCurdy

31 Handbook of Information Resource Management, edited by Jack Rabin

and Edward M Jackowski

32 Public Administration in Developed Democracies: A Comparative Study, edited by

Donald C Rowat

33 The Politics of Terrorism: Third Edition, edited by Michael Stohl

34 Handbook on Human Services Administration, edited by Jack Rabin

and Marcia B Steinhauer

36 Ethics for Bureaucrats: An Essay on Law and Values, Second Edition, John A Rohr

40 Organizational Behavior and Public Management: Second Edition, Michael L Vasu,

Debra W Stewart, and G David Garson

43 Government Financial Management Theory, Gerald J Miller

46 Handbook of Public Budgeting, edited by Jack Rabin

49 Handbook of Court Administration and Management, edited by Steven W Hays

and Cole Blease Graham, Jr.

50 Handbook of Comparative Public Budgeting and Financial Management, edited by

Thomas D Lynch and Lawrence L Martin

53 Encyclopedia of Policy Studies: Second Edition, edited by Stuart S Nagel

54 Handbook of Regulation and Administrative Law, edited by David H Rosenbloom

and Richard D Schwartz

55 Handbook of Bureaucracy, edited by Ali Farazmand

56 Handbook of Public Sector Labor Relations, edited by Jack Rabin, Thomas Vocino,

W Bartley Hildreth, and Gerald J Miller

57 Practical Public Management, Robert T Golembiewski

58 Handbook of Public Personnel Administration, edited by Jack Rabin, Thomas Vocino,

W Bartley Hildreth, and Gerald J Miller

60 Handbook of Debt Management, edited by Gerald J Miller

61 Public Administration and Law: Second Edition, David H Rosenbloom

and Rosemary O’Leary

62 Handbook of Local Government Administration, edited by John J Gargan

63 Handbook of Administrative Communication, edited by James L Garnett

and Alexander Kouzmin

64 Public Budgeting and Finance: Fourth Edition, edited by Robert T Golembiewski

and Jack Rabin

67 Handbook of Public Finance, edited by Fred Thompson and Mark T Green

68 Organizational Behavior and Public Management: Third Edition, Michael L Vasu,

Debra W Stewart, and G David Garson

69 Handbook of Economic Development, edited by Kuotsai Tom Liou

70 Handbook of Health Administration and Policy, edited by Anne Osborne Kilpatrick

and James A Johnson

72 Handbook on Taxation, edited by W Bartley Hildreth and James A Richardson

73 Handbook of Comparative Public Administration in the Asia-Pacific Basin, edited by

Hoi-kwok Wong and Hon S Chan

74 Handbook of Global Environmental Policy and Administration, edited by

Dennis L Soden and Brent S Steel

75 Handbook of State Government Administration, edited by John J Gargan

76 Handbook of Global Legal Policy, edited by Stuart S Nagel

78 Handbook of Global Economic Policy, edited by Stuart S Nagel

79 Handbook of Strategic Management: Second Edition, edited by Jack Rabin,

Gerald J Miller, and W Bartley Hildreth

80 Handbook of Global International Policy, edited by Stuart S Nagel

81 Handbook of Organizational Consultation: Second Edition, edited by

Robert T Golembiewski

82 Handbook of Global Political Policy, edited by Stuart S Nagel

83 Handbook of Global Technology Policy, edited by Stuart S Nagel

84 Handbook of Criminal Justice Administration, edited by M A DuPont-Morales,

Michael K Hooper, and Judy H Schmidt

85 Labor Relations in the Public Sector: Third Edition, edited by Richard C Kearney

86 Handbook of Administrative Ethics: Second Edition, edited by Terry L Cooper

87 Handbook of Organizational Behavior: Second Edition, edited by

Robert T Golembiewski

and Peter M Leitner

91 Handbook of Public Management Practice and Reform, edited by Kuotsai Tom Liou

93 Handbook of Crisis and Emergency Management, edited by Ali Farazmand

94 Handbook of Comparative and Development Public Administration: Second Edition,

edited by Ali Farazmand

95 Financial Planning and Management in Public Organizations, Alan Walter Steiss

and Emeka O Cyprian Nwagwu

96 Handbook of International Health Care Systems, edited by Khi V Thai,

Edward T Wimberley, and Sharon M McManus

97 Handbook of Monetary Policy, edited by Jack Rabin and Glenn L Stevens

98 Handbook of Fiscal Policy, edited by Jack Rabin and Glenn L Stevens

99 Public Administration: An Interdisciplinary Critical Analysis, edited by Eran Vigoda

100 Ironies in Organizational Development: Second Edition, Revised and Expanded,

edited by Robert T Golembiewski

101 Science and Technology of Terrorism and Counterterrorism, edited by

Tushar K Ghosh, Mark A Prelas, Dabir S Viswanath, and Sudarshan K Loyalka

102 Strategic Management for Public and Nonprofit Organizations, Alan Walter Steiss

103 Case Studies in Public Budgeting and Financial Management: Second Edition,

edited by Aman Khan and W Bartley Hildreth

104 Handbook of Conflict Management, edited by William J Pammer, Jr and Jerri Killian

105 Chaos Organization and Disaster Management, Alan Kirschenbaum

106 Handbook of Gay, Lesbian, Bisexual, and Transgender Administration and Policy,

edited by Wallace Swan

107 Public Productivity Handbook: Second Edition, edited by Marc Holzer

108 Handbook of Developmental Policy Studies, edited by Gedeon M Mudacumura,

Desta Mebratu and M Shamsul Haque

109 Bioterrorism in Medical and Healthcare Administration, Laure Paquette

110 International Public Policy and Management: Policy Learning Beyond Regional,

Cultural, and Political Boundaries, edited by David Levi-Faur and Eran Vigoda-Gadot

111 Handbook of Public Information Systems, Second Edition, edited by G David Garson

112 Handbook of Public Sector Economics, edited by Donijo Robbins

113 Handbook of Public Administration and Policy in the European Union, edited by

M Peter van der Hoek

114 Nonproliferation Issues for Weapons of Mass Destruction, Mark A Prelas

and Michael S Peck

115 Common Ground, Common Future: Moral Agency in Public Administration,

Professions, and Citizenship, Charles Garofalo and Dean Geuras

116 Handbook of Organization Theory and Management: The Philosophical Approach,

Second Edition, edited by Thomas D Lynch and Peter L Cruise

117 International Development Governance, edited by Ahmed Shafiqul Huque

and Habib Zafarullah

118 Sustainable Development Policy and Administration, edited by

Gedeon M Mudacumura, Desta Mebratu, and M Shamsul Haque

119 Public Financial Management, edited by Howard A Frank

120 Handbook of Juvenile Justice: Theory and Practice, edited by Barbara Sims

and Pamela Preston

121 Emerging Infectious Diseases and the Threat to Occupational Health in the U.S

and Canada, edited by William Charney

122 Handbook of Technology Management in Public Administration, edited by

David Greisler and Ronald J Stupak

123 Handbook of Decision Making, edited by Göktu ˘g Morçöl

124 Handbook of Public Administration, Third Edition, edited by Jack Rabin,

W Bartley Hildreth, and Gerald J Miller

edited by Kathe Callahan

127 American Public Service: Radical Reform and the Merit System, edited by

James S Bowman and Jonathan P West

128 Handbook of Transportation Policy and Administration, edited by Jeremy Plant

129 The Art and Practice of Court Administration, Alexander B Aikman

130 Handbook of Globalization, Governance, and Public Administration, edited by

Ali Farazmand and Jack Pinkowski

131 Handbook of Globalization and the Environment, edited by Khi V Thai, Dianne Rahm,

and Jerrell D Coggburn

132 Personnel Management in Government: Politics and Process, Sixth Edition,

Norma M Riccucci and Katherine C Naff

133 Handbook of Police Administration, edited by Jim Ruiz and Don Hummer

134 Handbook of Research Methods in Public Administration, Second Edition, edited by

Kaifeng Yang and Gerald J Miller

135 Social and Economic Control of Alcohol: The 21st Amendment in the 21st Century,

edited by Carole L Jurkiewicz and Murphy J Painter

136 Government Public Relations: A Reader, edited by Mordecai Lee

137 Handbook of Military Administration, edited by Jeffrey A Weber and Johan Eliasson

138 Disaster Management Handbook, edited by Jack Pinkowski

139 Homeland Security Handbook, edited by Jack Pinkowski

140 Health Capital and Sustainable Socioeconomic Development, edited by

Patricia A Cholewka and Mitra M Motlagh

141 Handbook of Administrative Reform: An International Perspective, edited by

Jerri Killian and Niklas Eklund

142 Government Budget Forecasting: Theory and Practice, edited by Jinping Sun

and Thomas D Lynch

143 Handbook of Long-Term Care Administration and Policy, edited by

Cynthia Massie Mara and Laura Katz Olson

144 Handbook of Employee Benefits and Administration, edited by Christopher G Reddick

and Jerrell D Coggburn

145 Business Improvement Districts: Research, Theories, and Controversies, edited by

Göktu ˘g Morçöl, Lorlene Hoyt, Jack W Meek, and Ulf Zimmermann

146 International Handbook of Public Procurement, edited by Khi V Thai

Available Electronically

Principles and Practices of Public Administration, edited by Jack Rabin, Robert F Munzenrider, and Sherrie M Bartell

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Library of Congress Cataloging-in-Publication Data

International handbook of public procurement / [edited by] Khi V Thai.

p cm (Public administration and public policy ; 146) Includes bibliographical references and index.

ISBN 978-1-4200-5457-6 (alk paper)

1 Government purchasing Handbooks, manuals, etc 2 Government spending policy Handbooks, manuals, etc 3 Public contracts Handbooks, manuals, etc I Thai, Khi V., 1941-

To my wife, Xuan,

Preface xv

Editor xvii

Contributors xix

1 International Public Procurement: Concepts and Practices 1

KHI V THAI SECTION I: PUBLIC PROCUREMENT: A CONCEPTUAL FRAMEWORK 2 Framework for Assessing the Acquisition Function at Federal Agencies 27

U.S GOVERNMENT ACCOUNTABILITY OFFICE 3 Assessing Federal Procurement Reform: Has the Procurement Pendulum Stopped Swinging? 67

JOSEPH A PEGNATO 4 Analytical Framework for the Management and Reform of Public Procurement 87

PAUL R SCHAPPER, JOÃO NUNO VEIGA MALTA, AND DIANE L GILBERT 5 EU Directives as Anticorruption Measures: Excluding Corruption-Convicted Tenderers from Public Procurement Contracts 105

TERESA MEDINA ARNÁIZ 6 Public Procurement Reforms in Africa: A Tool for Eff ective Governance of the Public Sector and Poverty Reduction 131

BENON BASHEKA 7 Simulation Approach to In-House versus Contracted-Out Cost Comparisons 157

DONALD R DEIS, HELMUT SCHNEIDER, CHESTER G WILMOT, AND CHARLES H COATES, J R 8 Public Procurement Organization: A Comparison of Purchasing’s Organizational Roles and Responsibilities in the Public and Private Sectors 175

P FRASER JOHNSON, MICHIEL R LEENDERS, AND CLIFFORD M C CUE

9 Service Sourcing 187

ALESSANDRO ANCARANI

10 How Many Vendors Does It Take to Screw Down a Price? A Primer

on Competition in Procurement 211

JEFFREY M KEISLER AND WILLIAM A BUEHRING

SECTION II: PROCUREMENT SYSTEMS

11 Public Procurement in the United Nations System 233

TORU SAKANE

12 EC Regime on Public Procurement 251

SUE ARROWSMITH

13 U.S Federal Government Procurement: Organizational Structure,

Process, and Current Issues 291

KRISTI D CARAVELLA ROBINSON

14 Public Procurement in Germany 307

MICHAEL ESSIG, SANDRA DOROBEK, ANDREAS GLAS, AND SABRINA LEUGER

15 China’s Government Procurement Policy and Institutional Framework:

History, Structure, and Operation 323

18 Procurement Systems in Uganda 393

EDGAR AGABA AND NIGEL SHIPMAN

19 Public Procurement in Post-Transitional Context: Th e Case of Estonia 409

VEIKO LEMBER AND VEIKO VASKE

20 Procurement Process in the Public Sector: An International Perspective 427

NIGEL CALDWELL AND ELMER BAKKER

SECTION III: E-PROCUREMENT

21 Key Issues in E-Procurement: Procurement Implementation

and Operation in the Public Sector 445

SIMON CROOM AND ALISTAIR BRANDONJONES

22 Factors Influencing E-Procurement Usage 459

KEN DOOLEY AND SHARON PURCHASE

23 Facilitators of Public E-Procurement: Lessons Learned

from the U.K., U.S., and Australian Initiatives 473

KISHOR VAIDYA, GUY C CALLENDER, AND A.S.M SAJEEV

24 Evaluation of Public E-Procurement Services Accessibility:

A Multicriteria Approach 491

GIUSEPPE BRUNO, EMILIO ESPOSITO, AND MICHELE MASTROIANNI

25 World Bank E-Procurement for the Selection of Consultants:

Challenges and Lessons Learned 511

KNUT LEIPOLD, JASON KLEMOW, FRANCINE HOLLOWAY, AND KISHOR VAIDYA

26 E-Procurement Management in State Governments: Diff usion

of E-Procurement Practices and Its Determinants 527

M JAE MOON

SECTION IV: PUBLIC PROCUREMENT METHODS AND PRACTICES

27 Best Practices: Using Spend Analysis to Help Agencies Take a More Strategic

Approach to Procurement 543

U.S GOVERNMENT ACCOUNTABILITY OFFICE

28 Contract Negotiations 563

WENDELL C LAWTHER

29 Controlling Service Process Performance with Statistical Process Control 579

RALPH G KAUFFMAN AND PHILIP G LIGHTFOOT

30 Fixed Asset Disposal: Methods and Strategies for Disposing of Personal

Property in the Public Sector 591

DARIN MATTHEWS AND ELIZABETH GIBSON

31 Enhancing Use of Past Performance as a Source Selection Criterion 613

KEITH F SNIDER AND MARK F WALKNER

32 Ban-on-Negotiations in Tender Procedures: Undermining

the Best Value for Money 631

KAI KRÜGER

33 Bid Protests: Th eory and Practice 659

ROBERT E LLOYD

34 Decision Technological Foundations of Public Procurement Processes 673

CSABA CSÁKI AND PÉTER GELLÉRI

35 Pricing Strategies and Cost Analysis in Public Procurement 689

RUPERT G RHODD

36 Public–Private Partnerships 703

LAWRENCE L MARTIN AND COREY T STUTTE

37 Market’s Response to Contract Award Announcements: Government

versus Corporate Contracts 725

STEPHEN J LARSON AND ARMAND PICOU

38 Economic Context of Public Procurement 737

GUY C CALLENDER AND DARIN MATTHEWS

39 Off set Policy Design in International Procurement 749

TRAVIS K TAYLOR

40 Regression Approach for Estimating Procurement Cost 763

GARY W MOORE AND EDWARD D WHITE III

41 Procurement Design: Lessons from Economic Th eory and Illustrations

from the Dutch Procurement of Welfare-to-Work Projects 779

SANDER ONDERSTAL AND FLÓRA FELSÖ

Index 793

the Public Administration and Public Policy Series I agreed to undertake this challenging project

several months before Dr Rabin’s death in late 2006 It is challenging because its scope is extremely

broad

First, from the perspective of procurement organization, how can a book cover the procurement

systems of all the countries in the world? Should it cover only national government procurement

sys-tems? Should it focus on only public procurement systems and practices in industrialized countries

and ignore the same in developing countries? Should it also cover procurement systems of public

international organizations such as the World Bank and its development bank group, the United

Nations, the International Monetary Fund, etc., as these organizations have a pronounced

infl uence on procurement practices in their client countries?

Second, substantially, public procurement has become a very complex function of government

that handles a great proportion of public expenditures (which reach 70 percent of total government

expenditure, according to numerous World Bank reports) and procurement expenditures (or “spends,”

a term found in numerous reports and publications) Indeed, public procurement is a system that

consists of

Procurement laws and regulations, procurement organizational structure (central procurement

Procurement processes (from procurement authorization, appropriations to contract formation, contract administration, etc.)

Procurement methods (invitation to bid or request for bids, request for proposals, request for quotations, etc.)

Procurement techniques (life-cycle costing, evaluation, negotiations, etc.)Procurement professionalism and workforce

procurement, due to the size of its spending, becomes a policy tool that policy makers use to address

social issues (helping minority/women-owned enterprises, and small and medium fi rms), economic

concerns have made procurement practices more complicated Finally, the recent globalization

not only national laws and regulations but also to international trade agreements

public procurement In addition to the broad scope of public procurement, there are other constraints

First, as we all know, public procurement has until recently been a neglected area of research

Consequently, getting a good number of submitted papers is always a major challenge Fortunately,

the international network that I have built via the International Public Procurement Conference

and the International Research Study of Public Procurement workshops, including Professors Guy

Callender (Curtin University of Technology, Australia), Christine Harland (University of Bath,

England), Gustavo Piga (University of Rome Tor Vergata, Italy), and Jan Telgen (University of

Twente, the Netherlands), has resulted in a good number of chapter proposals and full paper

sub-missions Second, chapters selected for this book had to be of a very high quality A number of

submitted chapters covering very meaningful issues failed to clear our rigorous review process

Finally, I would like to thank the staff of Taylor & Francis for their attention to detail, the

timeliness of their work, and their suggestions throughout the publication process I am indebted

to Rosalyn Carter, dean, College of Architecture and Urban and Public Aff airs, Florida Atlantic

University (FAU), for asking me to manage a new partnership project between FAU and the

National Institute of Governmental Purchasing, Inc (NIGP) In this partnership, I had a chance

that practitioner/academic partnership, and knowledge and innovation sharing elevate public

procurement

Khi V Th ai

Khi V Th ai is a professor at the School of Public Administration, Florida Atlantic University

1990–present) His expertise is in public budgeting, fi nancial management, and public procurement

He served as a director of the School of Public Administration at Florida Atlantic University

(1992–1996), and as a founder and former director of the Public Procurement Research Center at

Florida Atlantic University (1999–2007) He organized a variety of training programs, particularly

international training programs, and has provided technical assistance to governments in the United

States and other countries in Africa and Latin America

He is the editor of three academic journals (Journal of Public Budgeting, Accounting & Financial

Behavior); has served on editorial boards of eight academic journals; and has authored/coauthored

and edited/coedited over 100 refereed journal articles, technical reports, book chapters, and journal

symposiums and books Seven of his twelve books are on public procure ment, including Introduction

to Public Procurement (2nd ed.) (2007), Developing and Managing Requests for Proposals in the Public

Sector (2nd ed.) (2008), Economics of Public Procurement (2007), and Advancing Public Procurement:

Practices, Innovation and Knowledge Sharing (2007).

Edgar Agaba, MA, is an executive director and technical advisor of the Ugandan Public

Procure-ment and Disposal of Public Assets Authority He is a member of the Uganda Bar and has been

involved with the World Bank and the Organisation for Economic Co-operation and Development

in projects to strengthen procurement capacity in developing countries

Alessandro Ancarani, PhD, is an associate professor of managerial engineering, in the economical,

managerial, and valuation engineering section, in the Department of Civil and Environmental

Engineering at the University of Catania, Italy Ancarani’s expertise is in public services sourcing,

per-formance evaluation, service quality, facilities management services procurement, supplier

evalua-tion, and E-public services He was one of the founders of the managerial engineering program at the

University of Catania, and he is the Italian representative in the management committee of the C18

Cost Action program in the European Commission He is associate editor of the Journal of Purchasing

and Supply Management and is a reviewer for several international journals; he has authored/

coauthored and edited/coedited over 70 refereed journal articles, book chapters, conference

proceed-ings, and books Some of the books he has edited are Sourcing Decision Management (2005) and

Performance Evaluation in Public Services (2003) He is member of the IPSERA executive committee.

Teresa Medina Arnáiz is an administrative law professor and public sector coordinator at the

Insti-tute of Public Administration, Burgos University, Spain She has conducted training programs in

data protection, procurement, and E-administration for local and regional governments in Spain

(U.K.) and University of Paris II Pantheon-Assas (France) She is a member of the Alfa network

funded by the European Commission and has participated in several research projects on

adminis-tration, local government, and procurement She has authored/coauthored several articles

Sue Arrowsmith is a professor of public procurement law and director of the Public Procurement

Research Group in the School of Law, University of Nottingham, adjunct professor at Copenhagen

Business School, and a foundation professor of the Chartered Institute of Purchasing and Supply

(CIPS) Her numerous procurement publications have been extensively cited by courts and

Public and Utilities Procurement (Sweet & Maxwell, 2nd ed 2005); (with Linarelli and Wallace)

Regulating Public Procurement; National and International Perspectives (Kluwer, 2000); and

Govern-ment ProcureGovern-ment in the WTO (Kluwer, 2003) In 1992, she launched the fi rst international

aca-demic procurement journal, Public Procurement Law Review, and she launched the international,

interdisciplinary series of academic/practitioner conferences “Public Procurement: Global Revolution”

in 1996 In 2007, she was awarded the CIPS Swinbank Medal for thought innovation in purchasing

and supply She has taught university modules on international procurement since 1995 and

pre-sented papers in more than 30 countries She has been a member since 1997 of the European

Commission’s Advisory Committee for the Opening Up of Public Procurement; is a member of the

UNCITRAL Experts Group on Procurement; and has been a consultant and trainer for inter alia,

Bank, ILO, and Law Commission of England and Wales She is project leader of the European

Commission-funded Asia Link project for developing a global academic network on public

pro-curement regulation

Elmer Bakker, PhD, is a business analyst at Bath & North East Somerset Council in the United

Kingdom, where he advises on procurement issues Before this recent move, Elmer worked as a

Management, University of Bath In this capacity he worked with many public and private sector

organizations on procurement issues, the U.K National Health Service Purchasing and Supply

Agency, in particular His research interests have focused on a variety of public procurement issues

such as evidence-based procurement, the professionalization of procurement in the public sector,

collaborative procurement, and E-procurement adoption He has published several academic

arti-cles and book chapters and is a committee member of the U.K Chartered Institute of Purchasing

and Supply, West of England branch

Benon Basheka is currently a lecturer and consultant at the Uganda Management Institute, where he

coordinates short and long training programs in procurement and supply chain management His

exper-tise and research interest are in public procurement, logistics management, research methods, project

management, higher education policy, and organizational behavior He is a trainer for the Ugandan

Public Procurement and Disposal of Public Assets Authority where he has provided training services in

public procure ment to both central and local government stakeholders He has also provided consultancy

services to a number of private and nonprofi t and government organizations in the country

Phoebe Bolton is an associate professor of law at the University of the Western Cape, South Africa

She has written extensively on the fi eld of government contracts and government procurement and is

recipient of numerous academic awards, including the Codesria prize for the best doctoral thesis in

Africa in 2006, the Andrew Mellon Foundation fellowship, the Abe Bailey Travel Bursary, and most

to pursue research in Germany on government procurement and the protection of the environment

Alistair Brandon-Jones, PhD, is a lecturer in operations and supply management at the University

of Bath, United Kingdom His current research interests are in E-procurement implemen tation,

service quality, and supply strategy, and he is the U.K lead member for the International Purchasing

Survey His teaching expertise is in the areas of operations management, service operations, design and

innovation, and supply chain management Alistair has published in the International Journal of

Operations & Production Management, Journal of Purchasing & Supply Management, and Journal of

Public Procurement, and has contributed to the fourth and fi fth editions of Operations Management

by Slack, Chambers, and Johnston

Giuseppe Bruno is an associate professor of operational research, Department of Business and

Managerial Engineering, University of Naples Federico II, Italy His research interests lie mainly in the

fi elds of location and transportation planning, network design, logistics, and multicriteria analysis

He is associated with many national and international research institutes (National Research Council

[CNR], Naples, Italy; Centre de Recherche sur le Transports, Montreal, Canada) Currently, he is the

chair of the Italian Operation Research Society for Campania He has authored several books and

published papers in national and international journals

William A Buehring is a senior consultant at the Decision and Information Sciences Division,

Argonne National Laboratory, where he served as a member of the technical staff from 1977 to

2000 His expertise is in critical infrastructure analysis, decision analysis applications, and energy

systems analysis He has served as a senior staff er at the President’s Commission on Critical

Infrastructure Protection (1996–1997) and has recently been involved in critical infrastructure

pro-tection in support of the U.S Department of Homeland Security He has authored over 80

publi-cations, including journal articles, book contributions, international guide books, reports, and

conference papers

Nigel Caldwell is a research fellow, Centre for Research in Strategic Purchasing and Supply,

University of Bath, United Kingdom He gained practical experience by working in the automotive

industry His research includes emergency ambulance services, PFI in hospital construction and in

military aerospace, transformation of organizations into service-based business models because of

their major products, ensuring continual innnovation in established relationships and the risks

involved, and asset management support and creation and maintenance of contestable markets

with the help of new technologies He has authored/coauthored several refereed articles, is editor of

Procuring Complex Performance (forthcoming), and serves on the editorial board of the Journal

of Purchasing and Supply Management His coauthored paper won the best paper prize at the inaugural

International Public Procurement Conference in 2004, Florida

Guy C Callender is a professor and chair of leadership in strategic procurement, Curtin Business

School, Curtin University of Technology, Perth, Australia Callender has had careers in banking

and fi nance, tertiary education, and the building industry before joining the University of

Technol-ogy, Sydney (1991–2002), and Curtin University of Technology (2002–present) His expertise is in

accounting, organizational behavior, and procurement He is the principal of the Asia-Pacifi c

Procurement Research Group at Curtin University of Technology He is the editor of the Journal of

Contemporary Issues in Business and Government, and serves on the editorial board of several

jour-nals He is an active author of refereed journal articles, technical reports, books, book chapters, and

monographs, and is a member of the Research Committee of the National Institute of

Governmen-tal Purchasing, Inc In 2007, Guy was appointed a fellow of the Chartered Institute of Purchasing

and Supply

Charles H Coates, Jr served in the U.S Army Corps of Engineers from 1957 to 1978 in a variety

of staff , engineering, and command positions, and entered private consulting civil engineering

practice in Baton Rouge, Louisiana, until retirement in 1997 He possesses a wide range of

experi-ence in the construction and design of roadways, waterways, wastewater, transportation, and other

areas, including engineering management His main interest is in forensic engineering

Simon Croom, CIPS research fellow, is executive director and professor of supply chain

manage-ment at the University of San Diego, California His research interests include E-business, strategic

management, and supply chain management

Csaba Csáki is a lecturer at the University College Cork, Ireland, where he is also a PhD candidate He

worked for Bell Northern Research as a senior research analyst and development manager (1993–

2000) He worked as a research fellow at the Budapest University of Technology and Economics,

Hungary, from 2001 to 2007 His recent research interest covers decision methodologies and decision

support systems, with a special focus on how the changing regulatory environment—mainly changes

to the laws of public procurement—aff ects the decision-making practice of large organizations He has

organized various vocational training programs in Hungary He is a regular reviewer for journals, a

guest editor for an issue of the Journal of Decision Systems, a member of the International Research

Study of Public Procurement workshops program and of the Decision Support Systems Working

Group of the International Federation of Information Processing (IFIP WG 8.3) He regularly presents

papers at major conferences in the areas of both decision support and public procurement

Donald R Deis is the Ennis and Virginia Joslin endowed chair in accounting and interim chair of

the accounting and business law department, Texas A&M University, Corpus Christi He has

previ-ously taught at Louisiana State University and at the University of Missouri, Columbia He served

as president of the government and nonprofi t section of the American Accounting Association

(2001–2002), as a member of the AICPA’s Government Performance and Accountability

Commit-tee (2003–2007), and as a member of the PCAOB task force on audit fi rm quality standards

(2006–2007) He is on the editorial board of fi ve journals and has authored/coauthored more than

50 refereed articles His research interests include privatization of government services, audit quality,

and auditor independence

Ken Dooley recently retired from full-time employment after 32 years as a lecturer and senior

lec-turer in operations research at the Central Queensland University (CQU) He is now involved in

consulting for manufacturing companies and in various research and education activities at a

num-ber of other Australian universities including Queensland University of Technology, University of

Western Australia, Swinburne University, and University of Wollongong In the last fi ve years with

CQU he managed two major projects—developing, setting up, and implementing a major

devel-opment and training program for Queensland Purchasing, and the accreditation of the CQU

degree in purchasing and materials management with the Chartered Institute of Purchasing and

Supply Recent publications include papers presented at various national and international

profes-sional conferences

Sandra Dorobek is a PhD candidate and a research assistant at the Institute for Law and Management

of Public Procurement at the Bundeswehr University, Munich She graduated in national economics

at the Ludwig-Maximilians-University of Munich Her research focus is on public supply chain

management

Emilio Esposito is chair of the managerial engineering degree council and full professor of business

economics and organization at the Department of Business and Managerial Engineering,

Univer-sity of Naples Federico II, Italy His current research includes technology evaluation, ICT adoption

and diff usion, technological evolution in the ICT industry, competition and collaboration among

fi rms, technological relationships between large and small fi rms, customer–supplier relationships,

E-procurement, and E-government He is the author of more than 150 papers and books His

research has been published in several journals (French, German, English, and Italian ) including the

European Journal of Purchasing and Supply Management, International Journal of Globalisation and

Small Business, International Journal of Logistics, Research and Applications, Internationales Gewerbearchiv,

Enterprise & Innovation Management Journal, Revue Internationale PME, Small Business,

Technologi-cal Forecasting and Social Change, and Technovation.

Michael Essig is a professor and chair for materials management and distribution as well as codirector

of the Institute for Law and Management of Public Procurement at the Bundeswehr University,

Munich His main research interests are strategic supply management, supply networks, supply chain

management, public procurement, and economic theory, especially new institutional economics For

his dissertation, he received the Hans Ovelgönne Scientifi c Award of the German Purchasing Association

(BME) Michael Essig serves on the review board of the Journal of Supply Chain Management, the

Jour-nal of Purchasing and Supply Management, Supply Chain Management: An InternatioJour-nal JourJour-nal, and for

the Research College of the Chartered Institute of Purchasing and Supply (CIPS) He is the coeditor of

the leading German scientifi c logistics journal Logistik Management, a member of the scientifi c

boards of the German Purchasing Association and of the European Defence Public Private Partnership

Association, and a member of the scientifi c committee of the Austrian Ministry of Defence

Flóra Felsö is a PhD candidate at the University of Amsterdam, the Netherlands She has worked

as a researcher at SEO Economic Research (1998–2008) where she has been involved in contract

research in the fi eld of competition and regulation She has published book chapters on the law and

economics of procurements, on disclosure limitation methods, and on the liberalization of postal

services

Cao Fuguo is a professor of law at Law School, Central University of Finance and Economics

(CUFE), Beijing, China, and director, the International Research Center for Law and Economics, China

Public Procurement Research Group, and the EU Asia-link Program on public procurement

regula-tion at CUFE He is an expert group member and a Chinese delegate to the working group with

respect to the revision of the UNCITRAL Model Law on Government Procurement and also a

World Bank expert with respect to Chinese procurement law reforms He is a member of the expert

group of the Chinese Public Procurement Journal and of the editorial board of the U.K.-based Public

Procurement Law Review Cao is an expert on Chinese bidding law, Chinese government procurement

law, law and policy in private fi nance in infrastructure and utilities, international government

procurement laws (such as WTO-GPA), corporate law, and government contract law He has directed

and has been directing about ten research projects awarded by international and domestic institutions

with respect to diff erent areas of government procurement law His publications include Government

Bidding Law (2002), Annotation to the Chinese Government Procurement Law (2002), and Corporate

Governance and Minority Shareholder Protection (2006) He has also published more than 30 articles in

leading journals such as China Jurisprudence, Legal Science, and Public Procurement Law Review.

Péter Gelléri has a PhD in psychology and is a scientifi c advisor at Corvinus University of

Buda-pest, BudaBuda-pest, Hungary He is the founder of an MA program in decision support, a cooperation

among several EU universities (University College Cork, Université Pierre et Marie Curie Paris 6,

and Corvinus University of Budapest), and is working for its realization He is also the founder

and head of the department of information and knowledge management, Budapest University of

Technology and Economics (BUTE), Hungary (1991–2006) He was the founder and leader of a

public procurement manager vocational education program (2003–2006); head of the UNODC

(2003); founder and director of the research center for fi nancial informatics (BUTE, 1999–2005);

and vice head of the department of sociology (BUTE, 1985–1991) He has a series of technical

patents (software and know-how) with applications mainly in the fi elds of public–private partnership

spin-off companies, with activities in the decision support systems development industry and

consulting in the fi eld of public procurement His publications are mainly in the fi eld of decision

support systems He is a member of the editorial board of the upcoming Encyclopedia of Decision

Making and Decision Support Technologies.

Elizabeth Gibson has several years of management experience in the information technology industry,

including responsible positions in engineering, project management, procurement, and international

sourcing As a consultant she has focused on business process reengineering, database development, and

E-business Elizabeth has served as an instructor for Portland Community College, the University

of Phoenix, and the Northwest College of Construction

Diane L Gilbert is a procurement consultant Her research interest is in the areas of public sector

reform and governance

Andreas Glas is a PhD candidate and a research assistant at the School of Business Administration

at the Bundeswehr University, Munich His research focus is on public procurement

Francine Holloway is a senior contracts offi cer and the team leader for the offi ce of technology

team of the World Bank Group, where she is responsible for purchasing hardware and software and

leading electronic commerce initiatives

P Fraser Johnson is an associate professor at the Richard Ivey School of Business, University of

Western Ontario, Canada, where he teaches purchasing and supply, and logistics and operations

Before accepting a faculty position, Fraser worked in the automotive parts industry where he held

a number of senior management positions in both fi nance and operations Professor Johnson is an

active researcher in the areas of purchasing and supply chain management and he is the author of

several articles that have been published in a wide variety of journals and magazines Fraser is a

member of ISM’s education resources committee, currently is an associate editor for the Journal of

Supply Chain Management, and sits on the editorial advisory board for the International Journal of

Logistics Management and the editorial review board for the Journal of Purchasing and Supply

Man-agement Professor Johnson’s textbook, Purchasing and Supply Management (with Michiel Leenders,

Harold Fearon, and Anna Flynn), published by McGraw-Hill/Irwin, is now in its thirteenth edition

In recognition of his ongoing research in purchasing, Dr Johnson was awarded the ISM’s senior

research fellowship in 1999

David S Jones is an associate professor, Department of Public Policy and Administration,

Fac-ulty of Business, Economics, and Policy Studies, University of Brunei His research interests

include public sector reform, public fi nancial management, government procurement, and land

policy and administration Previously, he held various academic posts in Singapore and

Singapore; adjunct professor, School of Economics, Singapore Management University; and local

director in Singapore for the masters in public administration program conducted by the Australian

National University He has published numerous articles in international journals in his fi elds of

expertise, and essays in edited collections, as well as a book on land reform in Ireland He has also

undertaken extensive consultancy work in recent years and conducted professional training

pro-grams in Southeast Asia in policy evaluation, public budgeting, and government procurement

Ralph G Kauff man is an associate professor emeritus, College of Business, University of Houston–

Downtown, Texas, where he was a supply chain management program coordinator He has also

taught at the University of Texas at Dallas, LeTourneau University, Texas, and the Berufsakademie

Mosbach in Bad Mergentheim, Germany Also, he has guest lectured at the Fachhochschule fur

Wirtschaft, Berlin and the University of Stuttgart, Germany, among other institutions In addition

to his academic experience, he has over 27 years of industrial procurement and supply experience

His research interests include supply management and the organizational choice process He is the

coeditor of the sixth and seventh editions of the Supply Management Handbook and has served on

the editorial review board of the Journal of Supply Chain Management He has published numerous

articles in various procurement, supply management, and general management journals Over a

12-year period ending in 2006, he chaired fi rst the Institute for Supply Management (ISM)

Manu-facturing Business Survey Committee and then the ISM Non-ManuManu-facturing Business Survey

Committee In 2002 he received the J Shipman Gold Medal, the most distinguished award

pre-sented annually by the ISM

Jeff rey M Keisler is an associate professor in management science and information systems,

College of Management, University of Massachusetts, Boston, where he has been since 2000 He

previously had ten years consulting experience with General Motors, Argonne National Laboratory,

and Strategic Decisions Group, and has been a consultant for government agencies including

DOD, DOE, NRC, and EPA, as well as Global 1000 companies in pharmaceutical, energy, fi nancial,

and consumer products industries He is an expert in decision analysis, with regard to procurement,

project management, and portfolio resource allocation He has published numerous reports and

articles in journals such as Interfaces, Decision Analysis, and Risk Analysis.

Jason Klemow is an international consultant with over 15 years of professional experience focusing

on collaborative technology, strategic planning, and project management His expertise is in

supplier relations management and E-procurement He has authored/coauthored various journal

articles with respect to business technology, international procurement, and project management

In addition, he has been a guest speaker for a variety of organizations including SAP ASUG, the

Gartner Group, the Institute for Supply Management, and the Delphi Group

Kai Krüger, dr juris, is a senior professor at the law faculty, Bergen University, Norway He is a

member of the Norwegian Complaint Board for public procurement He teaches contract law,

intellectual property, and EU and EEA law on procurement in the EU Erasmus program His

pub-lications are on the areas of contract law, sales of goods, consumer law, tort law, intellectual

prop-erty law, and procurement law

Stephen J Larson is an assistant professor, School of Business, Eastern Illinois University, Charleston

He teaches fi nancial markets, and his research interests are in stock market overreaction, international

markets, and insurance issues

Wendell C Lawther is an associate professor of public administration at the University of Central

Florida He is currently the book review editor for the Journal of Public Procurement His

publi-cations include Capital Acquisitions: Decisions of Lasting Value (with John Adler, 2007); Privatizing

Toll Roads: A Public–Private Partnership (2000); and an IBM Business of Government monograph,

Contracting for the 21st Century: A Partnership Model (2002) He has also published numerous articles

and book chapters dealing with public procurement, public–private partnerships, transportation

policy, and human resource management

Michiel R Leenders is the Leenders Purchasing Management Association of Canada chair and

professor emeritus, Richard Ivey School of Business, University of Western Ontario He has

written a large number of articles in a variety of magazines and journals His supply

manage-ment texts have been translated into ten diff erent languages and include Value-Driven

Purchas-ing: Th e Key Steps in the Acquisition Process, Reverse Marketing, Th e New Buyer–Supplier

Relationship, and Improving Purchasing Eff ectiveness through Supplier Development He has also

coauthored nine editions of the case method texts Learning with Cases, Writing Cases, and

Teach-ing with Cases and nine editions of PurchasTeach-ing and Supply Management Mike has taught and

consulted extensively both in Canada and internationally He received PMAC’s fellowship

award in 1975, was elected to the PMAC chair in 1993, received the Financial Post Leaders in

Management Education Award in 1997, and the Hans Ovelgönne Purchasing Research Award

in 2001 He is the director of the Ivey Purchasing Managers Index and a director of the ING

Bank of Canada since its inception

Knut Leipold is a senior procurement specialist at the World Bank He works as an E-government

procurement (E-GP) and IT procurement expert in the bank’s procurement policy and services

group (OPCPR) Knut has led the bank’s eff orts of providing support and advice in designing and

implementing E-GP programs in numerous low- and middle-income countries Knut chairs the

E-GP working group of multilateral banks’ Procurement Harmonization Initiative and is a member

of the E-procurement working group of the European Commission and of the procurement expert

group of UNCITRAL He has developed E-GP guidance in line with the bank’s procurement policy

and has assessed several E-GP country systems for their use under bank-funded operations He has

authored/coauthored various journal articles and is a speaker at multiple international procurement

conferences in America, Asia, and Europe Before his more than seven-year assignment at the bank,

Knut had worked as director in the public sector and as an E-government business development

manager in the private sector for more than ten years

Veiko Lember is a PhD candidate and a research fellow, Institute of Humanities and Social Sciences,

Tallinn University of Technology, Estonia His main interests are in public procurement, contracting

and public management, and sports management His most recent research project includes public

procurement for innovation He has provided consultancy for governments in Estonia as well local

governments in Denmark, Finland, Sweden, and in other Baltic Sea countries He has published

several book chapters and journal articles

Sabrina Leuger is a research assistant at the Institute for Law and Management of Public

Procure-ment at the Bundeswehr University, Munich Her research focus is on public procureProcure-ment law

Philip G Lightfoot is a retired deputy assistant director, Department of Public Works and

Engi-neering, City of Houston, Texas His expertise in procurement, both public and private, spans a

career that included executive and managerial procurement positions with the city of Houston,

Texas, and with private corporations

Robert E Lloyd is director of the Regional Procurement Support Offi ce in Fort Lauderdale and in

his spare time contributes to the Public Procurement Research Center at Florida Atlantic

Univer-sity He began his career as a buyer at the Defense Fuel Supply Center, Cameron Station, of the

Depart-ment of the Treasury in Washington, and served on the Civilian Agency Acquisition Council Lloyd

then returned to the Department of Defense as a procurement analyst for the now-defunct Defense

Communications Agency, a senior procurement policy analyst at the Department of Housing and

Urban Development For the rest of his career he has been employed by the U.S Department of

State He served on the interagency committee that drafted the commercial item acquisition

por-tion of the Federal Acquisipor-tion Regulapor-tion He has authored over 20 articles on public procurement

and related topics published in professional journals and books

João Nuno Veiga Malta is a senior procurement specialist at the World Bank His expertise is in

E-procurement and E-government In 2002, he joined the Inter-American Development Bank as

the program coordinator, Electronic Government Procurement in the Project Procurement Division

He led a variety of important initiatives and was also a member of several international working

groups on E-procurement

Lawrence L Martin, PhD, is a professor of public aff airs, public administration, and social work

at the University of Central Florida in Orlando Martin has published extensively in the areas of

government procurement and contracting, particularly service contracting He has authored/

coauthored 20 books and major monographs and over 100 professional articles and book chapters

His works have been published by the National Institute of Governmental Purchasing, the National

League of Cities, the International City/County Management Association, the Reason Foundation,

and others Many of Martin’s publications have been translated into other languages including

Chinese, French, Korean, Portuguese, Russian, and Mongolian In 2007, Martin served as a

con-sultant to the Mongolian Ministry of Social Welfare and Labor on the development of policies and

procedures for the contracting out of government services

Michele Mastroianni, PhD, is currently the system and network manager at the Second University

of Naples He has taught computer networks and database systems at the Faculty of Engineering of

the University of Naples, Federico II His research interests lie mainly in the fi elds of IT adoption

and diff usion, technological evolution in the personal computer industry, performance analysis of

computer system and networks, and IS planning and management He has been involved in various

organizational committees of national and international conferences He has authored various

papers published in national and international journals and conferences

Darin Matthews, CPPO, CPM, is currently the chief procurement offi cer for Metro, the regional

government of Portland He has nearly 20 years of purchasing and supply management experience

in state and local governments, as well as private industry, and has served on local purchasing

boards in Oregon and on the NIGP board of directors since 2001 Darin serves on the governing

board of the Universal Public Purchasing Certifi cation Council and is an adjunct instructor at

Florida Atlantic University Darin speaks throughout North America on a variety of procurement

topics, and his writings have been featured in Government Procurement, Contract Management, and

the Journal of Public Procurement He has authored book chapters for NIGP’s Logistics and Transportation,

Warehousing and Inventory Control, and the Encyclopedia of Public Administration and Public Policy

He holds a graduate certifi cate in acquisition management

Cliff ord McCue is an associate professor, and director of the Public Procurement Research Center,

School of Public Administration, College of Architecture, Urban, and Public Aff airs, Florida Atlantic

University, Fort Lauderdale He has published over 30 articles in the top journals in public

adminis-tration, fi nance, budgeting, and public sector procurement His articles have examined such critical

policy issues as state and local government fi nancial planning, evaluating organizational eff ectiveness,

productivity, decision making and risk management, public employee behavior, and public

procure-ment In addition, he recently has authored four books: Leadership and Management of the Procurement

Function; Planning, Scheduling and Requirement Analysis; Local Government Budgeting: A Managerial

Approach; and Immigration and Its Impact on American Cities Currently, McCue serves as a consultant

for a host of international organizations and governments on public sector procurement

M Jae Moon is currently teaching at the Department of Public Administration of Korea University,

Seoul His teaching and research interests include public management, information technology,

and comparative public administration

Gary W Moore, USAF, is an instructor at the School of Systems and Logistics, Air Force Institute

of Technology, Wright–Patterson AFB, Ohio His areas of expertise involve fi nance, acquisition,

and risk management, and he has a master of science in acquisition management

Sander Onderstal is an assistant professor of economics, University of Amsterdam, the

Nether-lands His research interests include auctions, competition policy, and experimental economics He

Review, and the Journal of Political Economy Onderstal has advised several Dutch ministries and

private parties on (procurement) auctions for welfare-to-work programs, gasoline stations, and

fre-quencies for commercial radio stations and mobile telecommunications

Joseph A Pegnato is director, Offi ce of Acquisition Management, U.S General Accounting

of entrepreneurial models in the public sector

Armand Picou is an associate professor, Department of Economics and Finance, University of

Arkansas His teaching and research interests are in empirical time series, mergers and acquisitions,

and anomalies

Sharon Purchase is a senior lecturer at the University of Western Australia Business School, Perth,

Australia Her current research interests include buyer–seller relationships, business networks, and

procurement Her publications have appeared in Industrial Marketing Management and International

Marketing Review.

Rupert G Rhodd is an associate professor of economics in the College of Business at Florida

Atlantic University Rhodd has taught since 1986 (Iona College, New York, 1986–1988; and Florida

Atlantic University, 1989–present) His expertise is in the areas of applied macroeconomics, economic

modeling, and regional economics His published research can be found in many journals

includ-ing the Journal of International Development, Journal of Policy Modelinclud-ing, Atlantic Economic Journal,

Quarterly Review of Economics and Finance, Journal of Th ird World Studies, Handbook of Economic

Development, Applied Economics, Encyclopedia of Public Administration & Public Policy, and the

Indian Journal of Business & Economics Rhodd has also coauthored Contemporary Issues in the

Devel-opment of Caribbean Economies (2007).

Kristi D Caravella Robinson, a PhD candidate, serves as an assistant to the city manager for the

city of Davie, Florida Her areas of expertise include public budgeting and fi nancial administration

Her research interest is in using communication strategies to enhance public administration and

governance at the state and local levels

A.S.M Sajeev is a professor and chair of IT and computer science in the School of Mathematics,

Statistics, and Computer Science, University of New England, Australia His research interests are

in the areas of software engineering and Web engineering

Toru Sakane is a fellow, Japan Society for the Promotion of Science He is a researcher at the Graduate

School of Law and Politics, University of Tokyo, Japan His main research interests are public

procurement within the United Nations System, administrative and budgetary studies of the

United Nations, international public administration, and also public procurement in Japan He has

authored a book (in Japanese), Procurement Administration and the United Nations System (2005),

and several papers and journal articles

Paul R Schapper is an international development consultant with experience in more than 20

countries and was previously a professorial fellow, School of Business, Curtin University of

Tech-nology, and director-general of the Department of Industry and Technology in Western Australia

His research interests are public procurement, E-government, E-governance, and

telecommunica-tions for development He is also on the editorial board of the Journal of Digital Evidence and has

authored numerous publications

Helmut Schneider is a professor and chairman of the information systems and decision sciences

depart-ment, Louisiana State University He has taught statistics at the Free University in Berlin from 1978 to

1983 He was a visiting professor to the University of North Carolina at Chapel Hill and the University

of Arkansas in Fayetteville He has published two books and over 50 articles in refereed journals and is a

member of several professional organizations including the Association for Information Systems, the

Information Systems Audit and Control Associations, the American Statistical Association, and the

American Society for Quality His research interests include operations management issues of the

Nigel Shipman was formerly head of the government procurement service in Hong Kong and has

been a visiting lecturer at the Hong Kong Polytechnic University He served as an advisor, Public

Procurement and Disposal of Public Assets Authority, Uganda

Keith F Snider is an associate professor of public administration and management in the Graduate

School of Public Administration and Policy at the Naval Postgraduate School, Monterey, California

His teaching and research interests lie in the areas of defense acquisition policy, defense project

management, public organizations, and public administration theory and history Since 2003, he has

also served as principal investigator for a program of sponsored research on defense acquisition topics

In this capacity, he manages Department of Defense-sponsored research projects conducted at NPS

and numerous other universities, in addition to conducting the annual Acquisition Research

Symposium in Monterey Snider has also performed numerous research and technical assistance

projects for several U.S and international sponsors, including ministries of defense in Egypt, Chile,

Bulgaria, Slovenia, and the Republic of Slovekia

Corey T Stutte is a planner for the Polk County Board of County Commissioners in Bartow,

Florida He is also a doctoral student in public aff airs at the University of Central Florida in

Orlando His expertise is in public–private partnerships, governance, and planning

Travis K Taylor is an associate professor of economics, College of Business and Leadership, Christopher

Newport University He teaches courses in microeconomic theory, macroeconomic theory,

interna-tional contracting, and defense economics His research interests include internainterna-tional public

procurement, contract theory, and industrial policy He is an expert on the economics of off set

contracts, and has contributed articles to journals such as the Journal of Public Procurement, Journal

of Policy Modeling, and the Journal of International Business & Economics.

Kishor Vaidya is a research analyst with the Australian Government Department of Education,

Employment, and Workplace Relations Following the completion of his PhD from the University

of New England (New South Wales, Australia), he has accepted the position of honorary research

associate with the responsibility of supporting and guiding PhD students at the School of Science

and Technology His expertise is in adoption/performance measurement of interorganizational

information system (IOIS), E-government/E-commerce applications particularly E-procurement,

and public procurement He has recently developed research interest in using IOIS for combating

corruption in public procurement He has published extensively in refereed journals and

interna-tional conference proceedings and has worked with a number of Australian organizations including

ANZ Bank, Qantas Airways, and the Australian Government Department of Finance and

Administration

Veiko Vaske has a BA in law, and is a member of the review commission at the Public Procurement

as the fi rst instance of the judicial system Vaske graduated from the Faculty of Law of the

Univer-sity of Tartu, Republic of Estonia, in 2003 Since then and until 2007 he served as a chief specialist

at the public procurement unit of the Ministry of Finance of the Republic of Estonia where he was

engaged in drafting public procurement law and implementing European public procurement

leg-islation in Estonia In May 2007 he was appointed to a 5-year incumbency at the review

commis-sion He is also pursuing a master of public administration degree at the University of Tartu His

expertise and research interests are in public procurement law and European community law

Mark F Walkner is an administrative contracting offi cer for the Defense Contract Management

Agency (Rockwell Collins) in Cedar Rapids, Iowa He obtained a BS from Iowa State University

and an MSc in acquisition and contract management from the Naval Postgraduate School He

California Most recently, he was deployed from his current position to serve as an administrative

Edward D White III is an associate professor of statistics, Department of Mathematics and Statistics,

Air Force Institute of Technology, Wright–Patterson AFB, Ohio His teaching and research interests

are in design of experiments, linear and nonlinear regression, and statistical consulting, and he has

a doctorate in statistics

Chester G Wilmot is an associate professor, civil and environmental engineering department at

Louisiana State University Baton Rouge, Louisiana, and was a professor at Rand Afrikaans

University, Johannesberg, South Africa He served as a researcher for the Council for Scientifi c

and Industrial Research in South Africa and was a partner in a transportation research consultancy

there He has published numerous monographs, research reports, and more than 25 articles in

data collection for transportation planning, and transferability of transportation planning data

1.3.2.5 International Trade Agreement 71.4 Public Procurement System 81.4.1 Laws and Regulations 81.4.2 Public Procurement Organization 91.4.3 Public Procurement Workforce .101.4.4 Public Procurement Process and Methods 11

1.4.4.2 Preparing and Processing Procurement Requests 121.4.4.3 Developing and Reviewing Requirements Documents 121.4.4.4 Planning for Evaluation 15

1.4.4.5 Contract Award 181.4.4.6 Preparation and Signing of Contract 18

1.5 Implications of the Public Procurement Framework .191.6 Procurement Integrity and Corruption 20Notes 22References 22

1.1 Introduction

accelerated during the 1990s as governments at all levels came under increasing pressures to “do

more with less.” Indeed, all governmental entities of rich and poor countries are struggling in the

face of unrelenting budget constraints; government downsizing; public demand for increased

Additionally, public procurement professionals have faced a constantly changing environment

typi-fi ed by rapidly emerging technologies, increasing product choice, environment concerns, and the

complexities of international and regional trading agreements Further, policy makers have

increas-ingly used public procurement as a tool to achieve socioeconomic goals

In this environment, public procurement has become much more complex than ever before,

a tightrope in:

Balancing the dynamic tension between (1) competing socioeconomic objectives, (2) national economic interests, and (3) global competition as required by regional and international trade agreements

Satisfying the requirements of fairness, equity, and transparencyMaintaining an overarching focus on maximizing competition

purchase cards

objectives, for example:

cost and quality Should they pick Firm A, which proposes $25,000 for an item at a quality of

90 percent of the best item available in the market, or Firm B, which proposes $27,000 for a similar

item at a quality of 97 percent of the best item available? Quality cannot be considered without

regard to cost, just as cost cannot be considered without regard to quality

Firm A, a local fi rm, proposes $50,000 for a contract and will deliver the item within two days after

receiving an order, and Firm B, located in another part of the state, proposes $45,000 for the same

item, and it takes him or her two extra days as compared with Firm A Which fi rm should receive

the contract?

■

■

■

■

offi cials may decide to pay a higher award price to a fi rm which based on an evaluation of his or her

relative technical and business management strengths is more likely than a competitor to succeed

of minimizing risk and maximizing competition If minimizing technical risk were the only

performed the same or similar work on their previous contracts

Socioeconomic Objectives and Cost Trade-off Government entities often pay a premium, explicitly or

enti-ties, under certain circumstances, to pay a higher price for domestic-made goods vis-à-vis

foreign-made goods On the other hand, socioeconomic programs, despite their cost, have arguably

cost, has provided considerable work for small businesses and in doing so can be said to have been

eff ective in creating new sources of supply, thus maximizing competition

reducing contract prices On the other hand, this benefi t of competition is subject to diminishing

returns And, the government incurs an additional cost for every off er it considers (e.g., the salary

expenses of government workers who read the off er, technically evaluate it, apply price-related

fac-tors, and—if the off er has a reasonable prospect for award in negotiated acquisitions—discuss it

in terms of narrowing the number of off erors in the competitive range with whom a contracting

In this chapter, a public procurement framework that depicts basic components of public

briefl y explored Actually, this framework became a basis for the chapter selection of this book As

has been focused on procurement laws and regulations as evidenced by the existence of such academic

journals as Public Procurement Law Review (published by Sweet and Maxwell), and Public Contract

Law Journal (published by the American Bar Association Section of Public Contract Law), searching

a public procurement framework that refl ects the scope of public procurement is a challenge

In the remaining part of the chapter, more attention will be given to procurement integrity and

corruption, a problem that has been recently addressed by such international organizations as the World

Bank, the United Nations, the Organization for Economic Cooperation and Development (OECD),

and major donor countries including the U.S Agency for International Development (USAID) and the

U.K Department for International Development

1.2 Public Procurement Framework

works and services which includes all functions from the identifi cation of needs, selection and

solicitation of sources, preparation and award of contract, and all phases of contract administration

through the end of a services’ contract or the useful life of an asset” (United Nations Development

Programme, UNDP, 2007) Although procurement process is the heart of a sound procurement

system (Harink, 1999), public procurement, according to Harink (1999, p 15), “involves more

than the procurement process alone” and it should not only consist of supporting, but also “important

components” including strategy and policy of the organization, methods and procedures, personnel

and organization, and information In the last decade, several authors and organizations have

consists of four elements: legal framework, institutional framework and capacity, procurement

guidelines or a procurement benchmarking tool for assessing the quality and performance of

coun-try procurement systems Detailed areas covered under this framework include (1) legal framework,

(2) institutional framework, (3) procurement execution capacity, (4) procurement procedures/

tools, (5) control system, (6) anticorruption initiatives, (7) private sector participation, (8) contract

management, and (9) system for addressing complaints (Araujo, 2004)

framework for assessing the procurement function that is based on four “cornerstones”:

organiza-tional alignment and leadership, policies and processes, human capital, and knowledge and

infor-mation management Most recently, in 2006, the OECD developed a procurement assessment

model, based on indicators from OECD-DAC (Development Assistance Committee)/World Bank

consists of four “pillars” including legislative and regulatory framework, institutional framework

and management capacity, procurement operations and market practices, and integrity and

trans-parency of the public procurement system

model consists of (1) public procurement system and (2) a government framework and environment

eff ectively or ineff ectively depending on its four pillars: procurement organization, procurement

laws and regulations, procurement workforce, and procurement process and procedures

1.3 Governmental Framework and Environment

this framework, public procurement is one of many government functions, and the procurement

system can be prescribed in the national constitution (like in South Africa where the public

pro-curement is provided in its constitution), or determined through propro-curement laws and regulations

and through policy and budget decisions by legislators and the executive branch It is important

that the “public procurement system is mainstreamed and well integrated into the public sector

governance system” (OECD-DAC, 2006, p 20)

Organizationally, public procurement is dictated by the government system In general, there

are two major government systems: unitary and federal In a unitary system, the central

govern-ment exercises various levels of control over local governgovern-ments in various countries, be it provincial

or local governments Local government procurement structure and process are dictated by the

national government For example, in Uganda, the central government regulates local governments’

public procurement structure and process An amended Local Governments Act was enacted in

2006 to provide for the replacement of tender boards of local governments with contract

commit-tees, and to regulate the procurement procedures of local governments

At the other extreme, in the federal system, state and local governments enjoy a high level of

autonomy Each state and each local government are free to create their own procurement

fragmented; and there exists a great variation in procurement organizational structure, methods,

How-ever, in many unitary type countries, too much centralization tends to hinder procurement

Within a country, be it in the unitary system or the federal system, public procurement

organi-zations at each level of government can be decentralized or centralized A decentralized structure

must be carried out within the context of a larger organization In a survey of NIGP (1997)

state governments in the United States reported to the director of the fi nance department or

equiv-alent; and 21 percent reported to the director of general services department

relations and the active maintenance of a broad network of business contacts

and Social Environment

As each country has its own culture and its cultural, administrative, economic, legal, and social

tra-ditions, adopting any preconceived procurement system is not eff ective and appropriate

1.3.2.1 Economic or Market Conditions

Economic or market conditions have a great infl uence over the public procurement system’s eff ort

to maximize competition Moreover, the market determines whether or not socioeconomic

objectives of procurement are accomplished; whether or not a governmental entity can fulfi ll its

needs; the timeliness of fulfi llment; and the quality and costs of purchased goods, services, and

capital assets As there are diff erent levels of economic growth among countries in the world, market

conditions may be very favorable in industrialized countries, while they may be less favorable in

developing countries Economists classify three fundamental types of competition: pure, imperfect,

and monopoly At one end of the scale is pure (or perfect) competition At the opposite end of the

scale is monopoly In between the two, we have a situation defi ned as imperfect competition, such

as oligopoly

Pure or perfect competition exists only under the following circumstances:

Market contains a large number of buyers and sellers of approximately equal importance

Products traded are homogeneous (a buyer would not desire one particular seller’s product over any other’s)

Buyers and sellers always have a full knowledge of the market

Buyers always act rationally and sellers are free to enter and to leave the market at will (Dobler and Burt, 1996, p 297)

Under this market condition, the supply and demand principle dictates the deal, and suppliers compete for business of a third party by the off er of the most favorable terms as to price, quality, promptness of delivery, or service

But is it true that under a perfect competition market, “a buyer is able to achieve a solid value with

little or no eff ort” as Fearon et al (1993, p 639) stated? Actually, in the competitive automobile

market, for example, two buyers pay two diff erent prices for the same type of cars, depending on

their buying eff orts and negotiation skills

Imperfect competition occurs in the competitive area between pure or perfect competition and

monopoly Imperfect competition may occur in two forms One is a market characterized by few

many sellers produce many products Most of the products sold in this type of marketplace may be

dis-tinguished by specifi c diff erences Neither the buyers nor the sellers are able to dominate in such a

market is the ability of the parties to solve the problems themselves To be successful, buyers must be

aware of the marketplace in which they are working and be prepared to negotiate their best deals

Monopoly is defi ned as (1) a situation where there is one seller and many buyers of a product that

has no close substitution and where the seller has considerable over-price because of the lack of

competition or (2) the exclusive right to carry on a particular activity A monopoly exists when one

company is able to dictate the prices, quality, and service In practice, these categories are not mutually

exclusive and may overlap Even under a perfectly competitive condition like that in the United States,

some supplies and services are required only by the government (particularly for weapons systems) and

Markets can be grouped into two types: stable and unstable markets Generally, materials

pur-chased in stable markets tend to be standard off the shelf supplies In the long run, the supply and

demand principle (perfect competition) will determine the prices for these items In running their

daily business, buyers should concern themselves with short-term market conditions In the short

term, prices for the standard shelf items may not fl uctuate, but we may become aware of a decrease

in some raw material price or a “price war” in some product area We would like to obtain the

uc-tuations is to develop contracts that have some sort of economic adjustment clause

of these raw materials is frequently infl uenced by political forces, weather conditions, speculative

fi nancial actions, and other unpredictable reasons that are not governed by the laws of supply and

demand Normally, there are a large number of suppliers in this market and a large number of

and be sure to plan for fl uctuations

Diff erent from public procurement regulations and rules, the legal environment refers to a broad

legal framework that governs all business activities, including research and development ( regulations

dealing with safety and health of new products), manufacturing (safety and health regulations at

workplace and pollution control), fi nance (regulations dealing with disclosure of information),

marketing (regulations dealing with deceptive advertising and disclosure of product

characteris-tics), personnel (regulations dealing with equal opportunity for women and minorities), and

contract law Indeed, most aspects of contracts—public or private—such as contract requirements,

disputes, and breach of contract are governed under the same contract law In developing and

particularly transitional countries, where legal systems are not comprehensive, government contracts

may need detailed clauses defi ning basic principles

As “contract administration includes all relationships between the Government and the

con-tractor,” (Cibinic, Jr and Nash, Jr., 1995, p 1) the legal rights and duties of the parties determine

the proper course of action

In a democracy many individuals, groups, and organizations in the private sector including trade

associations, professional associations, and business fi rms or companies (commonly known as

inter-est groups) are actively involved in all aspects of the public procurement system Having various

interests, objectives, and beliefs, interest groups are involved in the public procurement system in

several ways such as lobbying legislative bodies to pass or alter procurement statutes, infl uencing

implementation of these statutes, and infl uencing budget authorization and appropriation

pro-cesses Normally, a government program that is eventually adopted is a compromise among diff

er-ent views of interest groups, policy makers, and managemer-ent In this democratic environmer-ent,

there are cases of a strong coalition of policy makers, bureaucrats, and interest groups in their eff ort

to get their programs adopted

However, the iron triangle shifts immediately after the procurement program authorization and

appropriation stages move to the procurement stage As failure or success in winning large defense

contracts has a great impact on a company, specialized defense companies compete against each other

politi-cal pressures and have to make sound economic decisions as well For example, should they be

con-cerned with maintaining future business competition by keeping some relatively weak companies in

business, or should they let these small weak fi rms go out of business and leave a few specialized fi rms

competi-tion hardly exists Large fi rms are more willing to make a small profi t margin or even to take business

losses by off ering especially favorable pricing simply to obtain the contract After small and weak fi rms

are out of business, the larger fi rms will enjoy an imperfect competitive market

A free media, vibrant civil society, engaged local communities, and an independent citizenry are

crucial components for good governance: they have a unique place with respect to holding

pro-curement transparency can help to facilitate participation and oversight, more proactive engagement

of society is also vital: (1) creating concrete opportunities for participation and oversight, for

exam-ple, through participatory development of procurement regulations and policies, procurement

budget allocations, civil society and media oversight over public procurement, monitoring of

income and asset declarations, and other arrangements that empower legitimate social groups; (2)

opportunities; and (3) enabling the development of independent and competitive media that can

investigate and report on procurement process, including corruption (World Bank, 2006)

1.3.2.5 International Trade Agreement

Markets become more and more globalized through regional and international trade agreements

and treaties According to Becq (2006, p 3), public procurement is “an area where unifi cation of

laws is particularly advanced Generally, standardization eff orts are more pronounced with respects