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Competitive Tendering and Contracting in the Public Sector: A Survey

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  • Simon Domberger
  • Stephen Rimmer

Abstract

This paper is a survey of the role and impact of competitive tendering and contracting (CTC) policies in the public sector. The paper examines the theoretical rationale for introducing competition in the provision of public services and the methodology by which contracting decisions are reached. It investigates the extent of implementation and nature of outcomes in several countries. A broad sweep of the empirical findings suggests that CTC generates substantial cost savings. Lack of adequate data makes an assessment of the effect on quality more troublesome, and further research is needed

Suggested Citation

  • Simon Domberger & Stephen Rimmer, 1994. "Competitive Tendering and Contracting in the Public Sector: A Survey," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(3), pages 439-453.
    • Handle: RePEc:taf:ijecbs:v:1:y:1994:i:3:p:439-453
    DOI: 10.1080/758536232
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    References listed on IDEAS

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    1. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, December.
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    Cited by:

    1. Alonso, José M. & Clifton, Judith & Díaz-Fuentes, Daniel, 2017. "The impact of government outsourcing on public spending: Evidence from European Union countries," Journal of Policy Modeling, Elsevier, vol. 39(2), pages 333-348.
    2. K. A. Houghton & C. Dolley & C. A. Jubb & K. M. Chong, 2002. "Jurisdictional Differences in Contracting Out GBE Audits: The Impact on Audit Pricing," Australian Accounting Review, CPA Australia, vol. 12(28), pages 50-57, November.
    3. Germa Bel & Anton Costas, 2006. "Do Public Sector Reforms Get Rusty? Local Privatization in Spain," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(1), pages 1-24.
    4. Angeles, Luis & Milne, Robin G., 2015. "Tracking cost savings from competitive tendering in the short and long run," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-74, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Jean-Etienne de Bettignies & Thomas W. Ross, 2010. "The Economics of Public–Private Partnerships: Some Theoretical Contributions," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 7, Edward Elgar Publishing.
    6. Preston, John, 2018. "The wheels keep on turning: Is the end of rail franchising in Britain in sight?," Research in Transportation Economics, Elsevier, vol. 69(C), pages 187-196.
    7. Luis Angeles & Robin G. Milne‌, 2015. "Tracking cost savings from competitive tendering in the short and long run," Working Papers 2015_11, Business School - Economics, University of Glasgow.
    8. Amaral, Miguel & Saussier, Stéphane & Yvrande-Billon, Anne, 2009. "Auction procedures and competition in public services: The case of urban public transport in France and London," Utilities Policy, Elsevier, vol. 17(2), pages 166-175, June.
    9. Dorigoni, Susanna & Portatadino, Sergio, 2009. "Natural gas distribution in Italy: When competition does not help the market," Utilities Policy, Elsevier, vol. 17(3-4), pages 245-257, September.
    10. Ola MATTISSON & Anna THOMASSON, 2007. "The Strategic Process And Its Impact On The Outcome Of A Tender," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(3), pages 439-454, September.
    11. Marius Constantin PROFIROIU & Septimiu Rares SZABO, 2016. "Outsourcing vs decentralisation: A comparative analysis in Central and Eastern Europe," Eco-Economics Review, Ecological University of Bucharest, Economics Faculty and Ecology and Environmental Protection Faculty, vol. 2(2), pages 3-26, December.
    12. Martínez, Ricardo & Sánchez-Soriano, Joaquín & Llorca, Natividad, 2022. "Assessments in public procurement procedures," Omega, Elsevier, vol. 111(C).
    13. Angeles, Luis & Milne, Robin G., 2015. "Tracking cost savings from competitive tendering in the short and long run," SIRE Discussion Papers 2015-74, Scottish Institute for Research in Economics (SIRE).
    14. Robin G. Milne & Robert E. Wright, 2004. "Competition and Costs: Evidence from Competitive Tendering in the Scottish National Health Service," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(1), pages 1-23, February.
    15. Andreas Bergh, 2014. "Sweden and the Revival of the Capitalist Welfare State," Books, Edward Elgar Publishing, number 15717.
    16. Germà Bel & Xavier Fageda, 2009. "Factors explaining local privatization: a meta-regression analysis," Public Choice, Springer, vol. 139(1), pages 105-119, April.
    17. Germa Bel & Anton Costas, 2004. "Do public sector reforms get rusty? An empirical analysis on privatization of solid waste collection," Public Economics 0409014, University Library of Munich, Germany.
    18. John Quiggin, 2004. "Risk, PPPs AND THE Public Sector Comparator," Australian Accounting Review, CPA Australia, vol. 14(33), pages 51-61, July.
    19. Robin G. Milne, 1997. "Market-type Mechanisms, Market Testing and Market Making: A Longitudinal Study of Contractor Interest in Tendering," Urban Studies, Urban Studies Journal Limited, vol. 34(4), pages 543-559, April.
    20. Mokonyama, Mathetha & Venter, Christoffel, 2013. "Incorporation of customer satisfaction in public transport contracts – A preliminary analysis," Research in Transportation Economics, Elsevier, vol. 39(1), pages 58-66.
    21. David Johnstone, 1999. "Public-Sector Outsourcing and Charging in-house Bidders for their use of Capital," Australian Accounting Review, CPA Australia, vol. 9(17), pages 33-41, March.
    22. Luis Angeles & Robin G Milne, 2015. "Tracking cost savings from competitive tendering in the short and long run," Working Papers 2015_19, Business School - Economics, University of Glasgow.
    23. Patrick Mabuza, 2019. "Is the Public Private Partnership Model the Right Vehicle for Public Infrastructure Delivery in Developing Countries?," Journal of Economics and Behavioral Studies, AMH International, vol. 11(1), pages 211-222.
    24. Shohei Nagasawa, 2018. "Asymmetric cost behavior in local public enterprises: exploring the public interest and striving for efficiency," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(3), pages 225-273, December.
    25. Jan Pavel & Emilia Sičáková-Beblavá, 2009. "Testing the Validity of the Brown-Potoski Model in the Czech and Slovak Republics," Prague Economic Papers, Prague University of Economics and Business, vol. 2009(4), pages 327-341.

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    More about this item

    Keywords

    Competitive tendering; Contracting-out; Public sector management; Competition policy; JEL classifications: LI4; L33;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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