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Procurement managers and effective tendering: The case of Italian public works contracts

Author

Listed:
  • Audinga Baltrunaite

    (Bank of Italy)

  • Enza Maltese

    (Bank of Italy)

  • Tommaso Orlando

    (Bank of Italy)

  • Gabriele Rovigatti

    (Bank of Italy)

Abstract

This paper studies whether and how much procurement managers matter for effective procurement outcomes. We utilize detailed data on Italian procurement for public works, and on the identity of public officials responsible for their tendering and execution. Our analysis shows that, ceteris paribus and even within the same procuring agency, the managers' identity matters for effective procurement. We further leverage institutional reforms that tightened the eligibility criteria for procurement managing roles as a natural experiment to evaluate the correlation between managerial quality and procurement performance. Key performance indicators include the duration of administrative procedures for tender awarding and the completion time for public works. Our findings suggest a direct positive relationship between the caliber of procurement managers and the expediency of both tender awarding and project completion.

Suggested Citation

  • Audinga Baltrunaite & Enza Maltese & Tommaso Orlando & Gabriele Rovigatti, 2023. "Procurement managers and effective tendering: The case of Italian public works contracts," Questioni di Economia e Finanza (Occasional Papers) 803, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_803_23
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2023-0803/QEF_803_23.pdf
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    References listed on IDEAS

    as
    1. Audinga Baltrunaite & Cristina Giorgiantonio & Sauro Mocetti & Tommaso Orlando, 2021. "Discretion and Supplier Selection in Public Procurement [Formal and Real Authority in Organizations]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 37(1), pages 134-166.
    2. Francesco Decarolis & Leonardo M Giuffrida & Elisabetta Iossa & Vincenzo Mollisi & Giancarlo Spagnolo, 2020. "Bureaucratic Competence and Procurement Outcomes [“Politics and Economics in Weak and Strong States]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 36(3), pages 537-597.
    3. Tirole, Jean, 1986. "Procurement and Renegotiation," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 235-259, April.
    4. Francesco Decarolis & Raymond Fisman & Paolo Pinotti & Silvia Vannutelli & Yongxiang Wang, 2023. "Gender and Bureaucratic Corruption: Evidence from Two Countries," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 39(2), pages 557-585.
    5. Leonardo M. Giuffrida & Gabriele Rovigatti, 2022. "Supplier selection and contract enforcement: Evidence from performance bonding," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(4), pages 980-1019, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    public procurement; public works; public managers;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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