The Aspects of Collaborative Procurement: Centralization, Scope and Different Market Structures
|Author:||Mgr. Amália Počarovská|
|Year:||2018 - winter|
|Leaders:|| PhDr. Mgr. Jana Gutiérrez Chvalkovská
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||Procurement centralization is a process that includes policy decisions on the
appropriate level of collaboration, aggregation and standardization. We analyse the
main aspects of collaborative procurement: centralization, scope and different market
structures. We use a unique dataset that combines Czech tender-level data with the
manually-collected data on centrally procured tenders and financial firm-level data
for the time span 2008 – 2016. We apply vector generalized linear model to the
compulsory centralized procurement sectors and assess the market competition and
concentration. We find several key aspects of centralized procurement: the
centralization has a significant positive impact on the competition in selected sectors.
The framework agreement is recognized as a positive setup of public procurement.
We identified a strong negative evidence of the heterogeneity of the procured
commodity. The design of centralization process and the degree of centralization is
always bound by two elementary questions: the flexibility or unification trade-off and
the set-up costs or unit costs trade-off.