IDEAS home Printed from https://ideas.repec.org/a/pmu/cjurid/v70y2017p40-55.html
   My bibliography  Save this article

FLAWS AND TRAPS IN THE PUBLIC PROCUREMENT PROCESS OUTPUT QUALITY- “A perception of the SMEs and NGOs from the Centre Region of Romania”

Author

Listed:
  • Radu BALANEAN

    (President , The National Federation for Education and Professional Training; Prime-Vice-President of the National Council for Small and Medium Sized Private Enterprises of Romania; President, Psychologist, PhD in social sciences and Researcher in social sciences at the Institute for Training, Studies and Research ITSC Romania.)

Abstract

Defining the problem: Within the institutional framework of the employers’ organizations and professional organizations, as time passed some issues were raised regarding the public mechanism of procurement. On one hand, lack of trust regarding transparency, process fairness and efficiency and on the other hand, the doubtful quality of the procurement process output. These issues were raised regardless of the role of SMEs and NGOs of being bidders or purchasers when it comes to projects financed from government funds. Purpose of the study: To identify how SMEs and NGOs perceive the process of public procurement by gauging their perception, encountered difficulties, efficiency and quality of the public procurement process while also identifying mechanisms that improve efficiency and overall quality of the public procurement process. Research Methods: Questionnaires given to SME and NGO managers that have dealt with public procurements in the past not only from the perspective of the bidder but also from the perspective of the purchaser. The questionnaires were aimed on one hand to capture the perception of the SME and the NGO sector regarding the process of public procurement while also identifying flaws within the process that distort the quality of the process output. Findings: At both SME and NGO levels that have a small and medium number of employees, the degree of trust in the objectivity of the public procurement process is low. More flaws were identified such as: an ambiguous legal framework which is hard to understand without external consultants, subjective criteria when it comes to eliminating flaws found in this process in order to improve the quality of the process output, inefficient public procurement education, too much discouraging red tape, the outcome of most procurements being based on the lowest price with negative effects in the quality of the result, major problems with devastating effects found after checkups from the authorities following the procurement process. Conclusions: After analyzing the collected data from our target population, the following needs have been identified: the need for having public purchasing education with a high efficiency (applicability)/ price ratio; the need to permanently update public procurement laws; need for a legal framework that prevents abusive control over public procurements; a need to modify procurement laws after consulting the SME and NGO sector; the need to have an easily-understandable legal framework; reducing red tape and eliminating process flaws that decrease the degree of trust and bidding.

Suggested Citation

  • Radu BALANEAN, 2017. "FLAWS AND TRAPS IN THE PUBLIC PROCUREMENT PROCESS OUTPUT QUALITY- “A perception of the SMEs and NGOs from the Centre Region of Romania”," Curentul Juridic, The Juridical Current, Le Courant Juridique, Petru Maior University, Faculty of Economics Law and Administrative Sciences and Pro Iure Foundation, vol. 70, pages 40-55, September.
  • Handle: RePEc:pmu:cjurid:v:70:y:2017:p:40-55
    as

    Download full text from publisher

    File URL: http://www.upm.ro/facultati_departamente/ea/RePEc/curentul_juridic/rcj17/recjurid173_3F.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Public procurement; SMEs; NGOs; European projects; bureaucracy; red tape;
    All these keywords.

    JEL classification:

    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K - Law and Economics
    • K - Law and Economics
    • A - General Economics and Teaching
    • A - General Economics and Teaching
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • A - General Economics and Teaching
    • B - Schools of Economic Thought and Methodology
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • E - Macroeconomics and Monetary Economics
    • H - Public Economics
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pmu:cjurid:v:70:y:2017:p:40-55. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bogdan Voaidas). General contact details of provider: https://edirc.repec.org/data/feuttro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.