Repeated selection of supplier, factors and results: the Czech Republic

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Authors

PLAČEK Michal SCHMIDT Martin OCHRANA František VACEKOVÁ Gabriela SOUKOPOVÁ Jana

Year of publication 2019
Type Article in Periodical
Magazine / Source Journal of Public Procurement
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web https://www.emerald.com/insight/content/doi/10.1108/JOPP-12-2018-0049/full/html
Doi http://dx.doi.org/10.1108/JOPP-12-2018-0049
Keywords public procurement; repeated contracts; overpricing; Czech Republic
Description Purpose: The article presents an analysis of the factors that lead to the repeated selection of specific suppliers and the effect of this recurrent selection on the pricing of public contracts. Design: A mix of quantitative and qualitative methods were used for the analysis. The logistic regression method was used to analyze the chances of obtaining repeated contracts. The classic ordinary least squares regression model was used to analyze the factor of contract pricing. The focus group method was used to explain the factors influencing the contracting authorities. Findings: The results show that prior procurement by a given contracting authority or work for the public sector in general has a statistically significant effect on the conclusion of contracts. The use of less transparent forms of input has a very strong impact. The non-transparent selection of suppliers, rather than the repetition of contracts, generally results in the overpricing of contracts. The IT sector is an exception. Originality: This research is original because it looks at the issue of the contracting authority in a wider context and through the view of the path dependency theory, which has not been previously applied to the public procurement environment. The focus on IT procurement, which, according to our research, has not been empirically investigated in this way, is also innovative.
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