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Local public procurement: how to deal with a creative bidder? A case study from the Netherlands

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  • van der Hoek, M. Peter

Abstract

This paper presents an analysis of the procurement of transportation services for the disabled by the town of Ridderkerk. The method used consisted of a study of the town’s files and interviews with 11 persons involved. The tender specifications were peculiar in that they required bidders to submit a schedule with prices per ride for seven classes ranging from 100,000 to over 600,000, whereas the real number of rides amounted to 270,000. One of the bidders quoted high prices for the first classes and very low prices for the last classes. On the basis of all seven classes, he quoted the lowest costs and won the contract. However, on the basis of the real number of rides he was the second most expensive bidder.

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File URL: http://mpra.ub.uni-muenchen.de/24280/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24280.

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Date of creation: 06 Sep 2008
Date of revision: 27 Oct 2009
Handle: RePEc:pra:mprapa:24280

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Related research

Keywords: Public procurement; local government; Netherlands; transportation services for disabled;

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References

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  1. G. Obermann & T. Kostal, 2003. "Public Procurement at the Local Level in Austria: The Economic Consequences of Compulsory Competitive Tendering for Public Services," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 74(1), pages 139-162, 03.
  2. Gunnar ALEXANDERSSON & Staffan HULT�N, 2007. "High And Low Bids In Tenders: Strategic Pricing And Other Bidding Behaviour In Public Tenders Of Passenger Railway Services," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(2), pages 161-194, 06.
  3. Gunnar Alexandersson & Staffan Hultén, 2006. "Predatory bidding in competitive tenders: A Swedish case study," European Journal of Law and Economics, Springer, vol. 22(1), pages 73-94, July.
  4. Sofia Lundberg, 2005. "Restrictions on Competition in Municipal Competitive Procurement in Sweden," International Advances in Economic Research, Springer, vol. 11(3), pages 329-342, August.
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