Description
Book SynopsisThis 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.
Table of ContentsChapter 1: Introduction
Reason for this book
1a) What is public procurement (including facts and figures)? (Jolien & Willem?)
· Definition
· Importance
· Facts & Figures
· Public sector procurement vs. private purchasing
1b) The reader as an agent of change (Jolien & Leentje)
· Procurement obligations (process) and values strived for with products/goods/services
1c) Public procurement processes (Fredo)
· Value chain vs. public value chain
· Sources of value
· Constitution/measurement of value produced
· from make-or-buy to contract management
1d) Different perspectives on procurement: social & environmental, legal, economic, organizational (Leentje + de rest)
· Value considerations and the role of public clients in collaborative environments
· Tender approach and value aim
· Finance-based: value for money in terms of cash / Use of private finances to meet social need
· Service-based: value for money in terms of taxs payers’ value / Use of competences, innovation and management of private parties to optimize time and cost efficiency in providing services
· Relationship-based: common goals / Focus on results, output. Results of end product or facility are built on partnering approach to collaborate, change
· Legal: Perspective on the role of laws and regulations in public procurement
1e) Development stages of public procurement (Jolien)
· Value decision in public procurement: Public value chain in public procurement process
· Make or buy to contract management
· Phase 1: The make-or-buy stage centers on whether conditions are suitable for contracting. Whether public values are safe in private hands?
· Phase 2: tender phase (selection, tender, award).
· Phase 3: Managing the contract: quality assurance, degree ^ organizing the process
1f) What are public values (Lizet)
· There is no single definition of public values. Different thinkers have made their own definition of public values
· Types of public values: substantive vs. procedural / performance vs. procedural
· The dynamics of public values
1g) Reading guide
Section 2: How to procure in the public sector (leading editor: Leentje)
Chapter 2: Public procurement law in the European Union (author: Willem)
2a) EU public procurement law: objectives, principles & methods
· Brief historic intro
· Layers of law (international, EU and national)
· Why: EU Objectives (internal market + instrumental use of procurement)
· Foundation: EU principles (equality, proportionality, transparency, objectivity, competition)
· Important interpretative concepts (legal interpretation methods, rule of thumb EU law: how to deal with it?)
2b) Who & what
· Discussion of contracting authority
· Discussion of public contract (brief reference to other legal instruments, such as subsidies, permits)
2c) How
· Discussion of the most important legal aspects:
· Exemptions (public-public cooperation, exclusive rights etc)
· Procedures (brief outline of the relevant options)
· Some current things: joint procurement, clustering etc.
· Criteria (selection, suitability, award etc)
· Exclusion grounds
· Modification
· Contractual criteria and post award
2d) Legal protection
· Discussion of the available legal routes to the Courts and possible remedies
Chapter 3: Organizing public procurement: from macro to micro
(authors: Lizet, Fredo & Leentje)
Introduction
3a) Designing a public procurement organization (Lizet & Leentje)
· Degree of publicness
· Some specific types in Europe (Netherlands: semi-public vs public)
· Authority/responsibility (leadership)
· Accountability
· Organizational mission (link public value statement)
· Hybrid forms
3b) Procurement maturity (Leentje & Fredo)
· Maturity stages - MSU
· Maturity models and impact of assessment
3c) Joint or collaborative purchasing (Fredo)
· In-house vs. outsourcing (make or buy) Beide?
· Interning
· Extern: partnership/ joint venture / service organization / (project-parent)
· RBV en TCE noemen?
· MVI?
· Definition purchasing collaboration (“Inkoopsamenwerking”)
· Sharing knowledge / information
· Sharing capacity
· Scale
· Pros and cons of collaboration
· Level of collaboration in different industries and sectors: health care, municipalities, regions. Link to category management of central government, others countries
· Yes or no purchasing together, including matrix
· Different types of purchasing collaborations, typology and theories (NIE)
· Success and fail factors, including guidelines for costs and benefits
· Grow model / maturity
3d) Creating organizational structures for collaborative procurement (Lizet)
· Project based organisations
· partnership/ joint venture / service organization
· project-parent
Chapter 4 Procurement processes (Fredo)
Introduction
4a) Purchasing / procurement strategy
· Organization strategy
· Category definition and management – for each category there can be a category strategy linked to the strategy of the organization
· Purchasing group definition (scope)
· Purchasing strategy – in line with the strategy of the organization and the category, you can develop a purchasing strategy
· Kraljic portfolio theory (including seller’s matrix and wind mill model)
· Strategic choices in line with purchasing quadrant (each subbullet a paragraph of about 5-10 lines)
o Single, dual or multiple sourcing (and how to allocate work between suppliers)
o Contract length
o Procurement model used
o Procurement procedure
o Financial model
o Contract type and incentives (refer to chapter 5)
o Using (dependent) lots or not
o How to deal with subcontracting and related issues
o Type of relationship with supplier(s)
o Individual of joint buying (refer to related section in chapter 3)
Example of a purchasing strategy document as part of online available materials
Student exercise: develop a purchasing strategy for the integral case
4b) Analyzing the market / users / consumers
· Market analysis
· Spend analysis
· Stakeholder analysis
· Role of the public organization
4c) Strategic choices of tender procedures
· Which decisions to make and why: strategic, efficiency, effectiveness based on short overview of procedures
4d) Supplier selection
· BPKV, LCC and Lowest Price
· Step 1: Selection and award criteria
· Step 2: Award methods (including lowest acceptable bid with highest societal impact)
· Step 3: Assessment method (relative/absolute)
· Step 4: Weight of criteria
· Step 5: Assessment and motivation
Chapter 5 Contracting and contract management (Wendy & Leentje)
Introduction
5a) Relation between procurement and contracting
· Role of public organizations as principals
· Types of contracts & incentives
· Role and functions of contracts
· Contract management
· Connect to below framework (source: Roehrich et al. (2019)).
5b) Setting the scene/ “fixing” the environment (left building block)
· Public entities as buying organizations, public-private partnerships (dedicated literature review in relation to governance?)
· Specific attention for triads (relates mostly to PPPs), ao. Wynstra, Spring, and Schoenherr (2015), Li and Choi (2009), Nullmeier (2019)
· When looking at the antecedents, which “categories” are (specifically) in scope and why?
5c) Evolution of/ developments in contracting: an academic and a practical perspective
· Types of contracts (fixed price, cost reimbursable, PBC, etc) vs D(F)BMO, EPC and other labels from practice (ao. Van der Valk, Lumineau, and Wang (2020))
· Functions of contracts: safeguard (control), coordination, adaptation (ao. Cao and Lumineau (2015), Roehrich et al. (2019), Schepker et al. (2014), Van der Valk, Lumineau, and Wang (2020))
· Contract design: specification, incentives, risk allocation based on Selviaridis and Wynstra (2015), Sumo, Van der Valk, Duijsters, et al. (2016), Sumo, van der Valk, van Weele, et al. (2016), Nullmeier, Wynstra , and Van Raaij (2016), etc. (Here, it would nice to link back to tendering procedures and connect to Willem regarding the legal side of contracts)
· Contract execution/ management (including enforcement (again, possibly a link with Willem)): evaluation (Nullmeier 2019), dealing with problems, learning (Vanneste and Puranam 2010), etc (connect here to relational governance)
5d) Outcomes/ performance implications
· traditional performance measurement and achievements in the past (good and bad examples from practice)
· more contemporary approaches/ forward-looking (examples of frontrunners; a.o. related to digitalisation and circularity)
Section 3: The future of public procurement (Leading editors: Jolien & Leentje)
Chapter 6 Ways forward: the future of public procurement (All)
6a) Transformations in the role of public procurement (Lizet & Jolien)
· ^ public value debate)
· Liberalisation and privatisation created a network of interdependent actors instead of sole producers
· However, public parties always remain social-politically responsible for the public good
· Increased collaborative nature changes relationships, task, and responsibility division, And the nature of public service delivery
· Public service delivery: Public service delivery is seen as achieving public objectives of public client organisations, as achieving public values, by direct or indirect exchanges between individuals, companies and social institutions, and government (relationships)
· Dilemmas: The discrepancy between dependence and responsibility:
6b) Digitization of procurement (Fredo?)
· Tender announcements
· Tender rooms
· Auctions
· Contract management
6c) Life cycle perspective on procurement (Wendy?)
· Integrating procurement and contracting / contractmanagement / (life long) learning / evaluation and feedback loop
6d) Safeguarding public values (Lizet)
· How to safeguard public values in these situations?
· Prevent Government failure, means dealing with conflicting values
· Alignment client – project/service/process
· reducing complexity (avoiding conflict) and engaging with complexity (balancing)
· either/or – both/and / short term – long term
· Aligning values, institutions and service-market conditions: ‘’contracting is an economic exchange among actors in which the government's central management challenge is to align public values, institutions, and service-market conditions across the three contracting phases.”
· Asset specify
· Ease of measurement (vulnerability governments; moral hazard etc.)
· (Moore’s strategic triangle): administrative actions
6e) The reader as an agent of change for a future with public procurement (Leentje / Jolien)
