This upper-level open access textbook uses an interdisciplinary perspective to discuss the ‘what and why’ of public procurement, providing insight into the ‘how’ of contemporary procurement in the public sector. The authors use theories and exemplary practices to show the next generation of public procurement professionals how public value can be created via the acquisition of works, supplies, or services by organizations operating in the public domain. Perfectly tailored to university students in public administration, law, economics, or management and those in executive education, the book first describes and explains the public procurement process, the concept of public value, the legal context of procurement and how the procurement function is organized in public organizations. The book subsequently explains how a procurement policy can be developed and translated into a procurement strategy, how tenders can be organized, suppliers selected, and contracts designed and evaluated. A final discussion chapter addresses the changes and developments in public procurement and how public procurement is moving forward. The reader of this innovative and accessible book will therefore not only learn what public procurement entails, but also how they can become a professional change agent in the field of public procurement. Forward-thinking and comprehensive, this book offers ideal reading for anyone interested in public procurement.
Author(s): Jolien Grandia, Leentje Volker
Publisher: Palgrave Macmillan
Year: 2023
Language: English
Pages: 165
City: London
Funding Information
Acknowledgments
Praise for Public Procurement
Contents
List of Contributors
List of Figures
List of Tables
1: Introducing Public Procurement
1.1 Introduction
1.2 The Public-Private Continuum
1.3 What Is Public Procurement?
1.4 Public Procurement Versus Private Purchasing
1.5 Procurement Process in Three Ps
Preparation Phase
Step 1: Explore
Step 2: Initiate
Purchasing Phase
Step 3: Tender
Step 4: Assess
Performing Phase
Step 5: Implement
Step 6: Execute
Step 7: Extend
1.6 Seven Development Stages of Public Procurement
Stage 1: Fulfilling the Need of an Organization
Stage 2: Compliance with the Law
Stage 3: Efficiency
Stage 4: Accountability
Stage 5: Value Creation for the Organization
Stage 6: Value Creation for Society
Stage 7: Collaborative Value Creation
1.7 The Multifaceted Character of Public Procurement
1.8 Reading Guide
1.9 Summary
References
2: Public Values in Procurement
2.1 Introduction
2.2 The Concept of Public Values
2.3 Complexity of Operating in the Public Domain
2.4 Three Basic Public Governance Models
2.5 Public Value Tensions in Public Service Delivery
2.6 Value Dilemmas in Procurement Processes
2.7 Coping with Conflicting Values
2.8 Summary
References
3: Public Procurement Law in the European Union
3.1 Introduction
3.2 Public Procurement Rules: The Internal Market and Discrimination Law
3.3 The Sources of EU Public Procurement Law
Primary and Secondary Law: Treaties and Directives
EU Thresholds and Cross-Border Interest
Tertiary Law
3.4 The Foundation of the Law: The Public Procurement Principles
Equality and Non-discrimination
Transparency
Proportionality
3.5 The Scope of EU Public Procurement Law
Who Must Follow the Rules: Contracting Authorities
What Objects Are Subjected to the Rules: Public Contracts
Exemptions from the Duty to Tender
3.6 Legal Possibilities to Enable Sustainable and Social Purchasing
Market Consultations
Procedures and Reserved Procedures
Technical Specifications and Labels
Exclusion Grounds
Award Criteria: Sustainability and Social Criteria and Life Cycle Costing
Contractual Conditions
3.7 Remedies for Aggrieved Bidders
The Procedure at a National Court
The Preliminary Procedure at the CJEU
The Infringement Procedure at the EU Commission
3.8 Summary
References
4: Organizing Public Procurement
4.1 Introduction
4.2 Purchasing Organization Structures
Decentralized Purchasing
Coordinated Purchasing
Centralized Purchasing
Center-Led Purchasing and Federal Purchasing
4.3 Joint Procurement
4.4 Forms of Joint Procurement
Hitchhiking
Bus Rides
Carpooling
Convoy
4.5 Summary
References
5: Public Procurement Policy and Purchasing Strategy
5.1 Introduction
5.2 Procurement Policy
Agenda-Setting
Procurement Policy Development and Decision-Making
Procurement Policy Implementation
Procurement Policy Evaluation
5.3 From Procurement Policy to Purchasing Strategy
Spend and Market Analyses
5.4 Choosing a Purchasing Strategy
Bottleneck Strategies
Routine Strategies
Leverage Strategies
Strategic Strategies
5.5 The Effects of Sales Strategy on Purchasing Strategy
5.6 Specific Strategic Purchasing Decisions
Single Versus Multiple Sourcing and Tendering in Lots
Contract Length
Functional and Technical Specifications
Tender Attractiveness
5.7 Summary
References
6: Tendering and Supplier Selection
6.1 Introduction
6.2 Considering a Tender as a Decision-Making Process
Sensemaking in Tender Situations
Matching Supply and Demand
Tensions in Tender Decisions
6.3 Tender Procedures and the Tender Process
Tender Procedures
Different Phases of a Tender Process
6.4 Developing Supplier Selection Models
6.5 Summary
References
7: Public Sector Contracting
7.1 Introduction
7.2 Contract Specification
7.3 Rewards and Incentives
7.4 Contract Execution and Management
7.5 Contract Analysis for Redesign and Learning
7.6 Summary
References
8: Ways Forward in Public Procurement
8.1 Introduction
8.2 Trends and Developments in Public Procurement
From Efficiency and Cost-Based Thinking Toward Value-Driven and Sustainability-Oriented Procurement Processes
From Administrative Procurement Decisions Toward Digitalized and Smart Decision-Making
From Front-End Practical Purchasing Instrument to Strategic Life Cycle Engagement
From Procuring Formal Dyadic Supply Chain Relations to Facilitating Relational Ecosystems
8.3 Implications for Public Procurement Practice in a New Era
Flexible and Adaptive Ways of Governing Relations Between Buyer and Supplier
Integration of Public Procurement Values in the Organization
Changing Capabilities and Competences of Procurement Professionals
Rebalancing the Multiple Perspectives on Public Procurement
8.4 Conclusion: Become a Change Agent
8.5 Summary
References
Index
