Bid Protests in Public Procurement: Czech Case
|Author:||Bc. Adam Nedvěd|
|Year:||2015 - summer|
|Leaders:|| PhDr. Ing. Jiří Skuhrovec PhD.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Bid protest mechanisms provide supervision over public procurement processes.
If set up properly, these mechanisms improve both ex-ante and ex-post e!-
ciency of public procurement. However, decentralisation of the oversight can
create opportunities for bidders to strategically abuse the system at the society’s
expense. In order to assess e!ciency of the Czech bid protest mechanism,
an empirical policy analysis of was conducted using a unique combined dataset
of all bid protest rulings of the Czech supervising authority linked to a complete
dataset of public contracts procured between 2007 and 2014. Econometric
methods for panel data analysis were employed in order to estimate e↵ects of
bid protesting on returns in form of awarded contracts. The selected approach
made it possible to focus on individual relationships between contracting authorities
and their suppliers. The results show significant di↵erences between
returns of protest against EU co-funded and EU unfunded contracts. Moreover
signs of strategical system abuse related to public works contracts were found.