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What explains delays in public procurement decisions?

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posted on 2023-02-08, 17:28 authored by Chusu He, Alistair MilneAlistair Milne, Ali Ataullah

Delays in contractor selection are widespread and often costly in public procurement. This paper is the first thorough empirical examination of a common view held by practitioners and in the theoretical literature that negotiation as a selection process causes delay. We adapt an established framework of decision-making process in the wider organisation literature to identify the determinants of decision speed in public procurement. Employing data for all UK public procurement contracts during 2009-2015, our results using both logit models and duration analysis suggest that organisational factors (e.g. the centralisation of procurement) and contract features (e.g. contract complexity) account better for delay. We also find that the choice of simpler procurement procedures, whether these involve negotiation or not, can reduce the decision time. Such time efficiency further justifies the use of negotiation for complex contracts, where this procedure has been proved cost-efficient. 

Funding

Loughborough University

History

School

  • Business and Economics

Department

  • Economics

Published in

Economic Modelling

Volume

121

Publisher

Elsevier

Version

  • VoR (Version of Record)

Rights holder

© The Authors

Publisher statement

This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).

Acceptance date

2023-01-22

Publication date

2023-01-23

Copyright date

2023

ISSN

0264-9993

eISSN

1873-6122

Language

  • en

Depositor

Prof Alistair Milne. Deposit date: 30 January 2023

Article number

106201

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