International Handbook of Public Procurement

International Handbook of Public Procurement

PUBLIC ADMINISTRATION AND PUBLIC POLICY A Comprehensive Publication Program

EDITOR-IN-CHIEF EVAN M. BERMAN Huey McElveen Distinguished Professor Louisiana State University Public Administration Institute Baton Rouge, Louisiana Founding Editor JACK RABIN Professor of Public Administration and Public Policy The Pennsylvania State UniversityHarrisburg School of Public Affairs Middletown, Pennsylvania

1. Public Administration as a Developing Discipline, Robert T. Golembiewski 2. Comparative National Policies on Health Care, Milton I. Roemer, M.D. 3. Exclusionary Injustice: The Problem of Illegally Obtained Evidence, Steven R. Schlesinger 5. Organization Development in Public Administration, edited by Robert T. Golembiewski and William B. Eddy 7. Approaches to Planned Change, Robert T. Golembiewski 8. Program Evaluation at HEW, edited by James G. Abert 9. The States and the Metropolis, Patricia S. Florestano and Vincent L. Marando 11. Changing Bureaucracies: Understanding the Organization before Selecting the Approach, William A. Medina 12. Handbook on Public Budgeting and Financial Management, edited by Jack Rabin and Thomas D. Lynch 15. Handbook on Public Personnel Administration and Labor Relations, edited by Jack Rabin, Thomas Vocino, W. Bartley Hildreth, and Gerald J. Miller 19. Handbook of Organization Management, edited by William B. Eddy 22. Politics and Administration: Woodrow Wilson and American Public Administration, edited by Jack Rabin and James S. Bowman 23. Making and Managing Policy: Formulation, Analysis, Evaluation, edited by G. Ronald Gilbert 25. Decision Making in the Public Sector, edited by Lloyd G. Nigro 26. Managing Administration, edited by Jack Rabin, Samuel Humes, and Brian S. Morgan 27. Public Personnel Update, edited by Michael Cohen and Robert T. Golembiewski 28. State and Local Government Administration, edited by Jack Rabin and Don Dodd 29. Public Administration: A Bibliographic Guide to the Literature, Howard E. McCurdy 31. Handbook of Information Resource Management, edited by Jack Rabin and Edward M. Jackowski 32. Public Administration in Developed Democracies: A Comparative Study, edited by Donald C. Rowat 33. The Politics of Terrorism: Third Edition, edited by Michael Stohl 34. Handbook on Human Services Administration, edited by Jack Rabin and Marcia B. Steinhauer 36. Ethics for Bureaucrats: An Essay on Law and Values, Second Edition, John A. Rohr

37. The Guide to the Foundations of Public Administration, Daniel W. Martin 39. Terrorism and Emergency Management: Policy and Administration, William L. Waugh, Jr. 40. Organizational Behavior and Public Management: Second Edition, Michael L. Vasu, Debra W. Stewart, and G. David Garson 43. Government Financial Management Theory, Gerald J. Miller 46. Handbook of Public Budgeting, edited by Jack Rabin 49. Handbook of Court Administration and Management, edited by Steven W. Hays and Cole Blease Graham, Jr. 50. Handbook of Comparative Public Budgeting and Financial Management, edited by Thomas D. Lynch and Lawrence L. Martin 53. Encyclopedia of Policy Studies: Second Edition, edited by Stuart S. Nagel 54. Handbook of Regulation and Administrative Law, edited by David H. Rosenbloom and Richard D. Schwartz 55. Handbook of Bureaucracy, edited by Ali Farazmand 56. Handbook of Public Sector Labor Relations, edited by Jack Rabin, Thomas Vocino, W. Bartley Hildreth, and Gerald J. Miller 57. Practical Public Management, Robert T. Golembiewski 58. Handbook of Public Personnel Administration, edited by Jack Rabin, Thomas Vocino, W. Bartley Hildreth, and Gerald J. Miller 60. Handbook of Debt Management, edited by Gerald J. Miller 61. Public Administration and Law: Second Edition, David H. Rosenbloom and Rosemary OLeary 62. Handbook of Local Government Administration, edited by John J. Gargan 63. Handbook of Administrative Communication, edited by James L. Garnett and Alexander Kouzmin 64. Public Budgeting and Finance: Fourth Edition, edited by Robert T. Golembiewski and Jack Rabin 67. Handbook of Public Finance, edited by Fred Thompson and Mark T. Green 68. Organizational Behavior and Public Management: Third Edition, Michael L. Vasu, Debra W. Stewart, and G. David Garson 69. Handbook of Economic Development, edited by Kuotsai Tom Liou 70. Handbook of Health Administration and Policy, edited by Anne Osborne Kilpatrick and James A. Johnson 72. Handbook on Taxation, edited by W. Bartley Hildreth and James A. Richardson 73. Handbook of Comparative Public Administration in the Asia-Pacific Basin, edited by Hoi-kwok Wong and Hon S. Chan 74. Handbook of Global Environmental Policy and Administration, edited by Dennis L. Soden and Brent S. Steel 75. Handbook of State Government Administration, edited by John J. Gargan 76. Handbook of Global Legal Policy, edited by Stuart S. Nagel 78. Handbook of Global Economic Policy, edited by Stuart S. Nagel 79. Handbook of Strategic Management: Second Edition, edited by Jack Rabin, Gerald J. Miller, and W. Bartley Hildreth 80. Handbook of Global International Policy, edited by Stuart S. Nagel 81. Handbook of Organizational Consultation: Second Edition, edited by Robert T. Golembiewski 82. Handbook of Global Political Policy, edited by Stuart S. Nagel 83. Handbook of Global Technology Policy, edited by Stuart S. Nagel 84. Handbook of Criminal Justice Administration, edited by M. A. DuPont-Morales, Michael K. Hooper, and Judy H. Schmidt 85. Labor Relations in the Public Sector: Third Edition, edited by Richard C. Kearney 86. Handbook of Administrative Ethics: Second Edition, edited by Terry L. Cooper 87. Handbook of Organizational Behavior: Second Edition, edited by Robert T. Golembiewski

88. Handbook of Global Social Policy, edited by Stuart S. Nagel and Amy Robb 89. Public Administration: A Comparative Perspective, Sixth Edition, Ferrel Heady 90. Handbook of Public Quality Management, edited by Ronald J. Stupak and Peter M. Leitner 91. Handbook of Public Management Practice and Reform, edited by Kuotsai Tom Liou 93. Handbook of Crisis and Emergency Management, edited by Ali Farazmand 94. Handbook of Comparative and Development Public Administration: Second Edition, edited by Ali Farazmand 95. Financial Planning and Management in Public Organizations, Alan Walter Steiss and Emeka O. Cyprian Nwagwu 96. Handbook of International Health Care Systems, edited by Khi V. Thai, Edward T. Wimberley, and Sharon M. McManus 97. Handbook of Monetary Policy, edited by Jack Rabin and Glenn L. Stevens 98. Handbook of Fiscal Policy, edited by Jack Rabin and Glenn L. Stevens 99. Public Administration: An Interdisciplinary Critical Analysis, edited by Eran Vigoda 100. Ironies in Organizational Development: Second Edition, Revised and Expanded, edited by Robert T. Golembiewski 101. Science and Technology of Terrorism and Counterterrorism, edited by Tushar K. Ghosh, Mark A. Prelas, Dabir S. Viswanath, and Sudarshan K. Loyalka 102. Strategic Management for Public and Nonprofit Organizations, Alan Walter Steiss 103. Case Studies in Public Budgeting and Financial Management: Second Edition, edited by Aman Khan and W. Bartley Hildreth 104. Handbook of Conflict Management, edited by William J. Pammer, Jr. and Jerri Killian 105. Chaos Organization and Disaster Management, Alan Kirschenbaum 106. Handbook of Gay, Lesbian, Bisexual, and Transgender Administration and Policy, edited by Wallace Swan 107. Public Productivity Handbook: Second Edition, edited by Marc Holzer 108. Handbook of Developmental Policy Studies, edited by Gedeon M. Mudacumura, Desta Mebratu and M. Shamsul Haque 109. Bioterrorism in Medical and Healthcare Administration, Laure Paquette 110. International Public Policy and Management: Policy Learning Beyond Regional, Cultural, and Political Boundaries, edited by David Levi-Faur and Eran Vigoda-Gadot 111. Handbook of Public Information Systems, Second Edition, edited by G. David Garson 112. Handbook of Public Sector Economics, edited by Donijo Robbins 113. Handbook of Public Administration and Policy in the European Union, edited by M. Peter van der Hoek 114. Nonproliferation Issues for Weapons of Mass Destruction, Mark A. Prelas and Michael S. Peck 115. Common Ground, Common Future: Moral Agency in Public Administration, Professions, and Citizenship, Charles Garofalo and Dean Geuras 116. Handbook of Organization Theory and Management: The Philosophical Approach, Second Edition, edited by Thomas D. Lynch and Peter L. Cruise 117. International Development Governance, edited by Ahmed Shafiqul Huque and Habib Zafarullah 118. Sustainable Development Policy and Administration, edited by Gedeon M. Mudacumura, Desta Mebratu, and M. Shamsul Haque 119. Public Financial Management, edited by Howard A. Frank 120. Handbook of Juvenile Justice: Theory and Practice, edited by Barbara Sims and Pamela Preston 121. Emerging Infectious Diseases and the Threat to Occupational Health in the U.S. and Canada, edited by William Charney 122. Handbook of Technology Management in Public Administration, edited by David Greisler and Ronald J. Stupak 123. Handbook of Decision Making, edited by Gktug Morl 124. Handbook of Public Administration, Third Edition, edited by Jack Rabin, W. Bartley Hildreth, and Gerald J. Miller

125. Handbook of Public Policy Analysis, edited by Frank Fischer, Gerald J. Miller, and Mara S. Sidney 126. Elements of Effective Governance: Measurement, Accountability and Participation, edited by Kathe Callahan 127. American Public Service: Radical Reform and the Merit System, edited by James S. Bowman and Jonathan P. West 128. Handbook of Transportation Policy and Administration, edited by Jeremy Plant 129. The Art and Practice of Court Administration, Alexander B. Aikman 130. Handbook of Globalization, Governance, and Public Administration, edited by Ali Farazmand and Jack Pinkowski 131. Handbook of Globalization and the Environment, edited by Khi V. Thai, Dianne Rahm, and Jerrell D. Coggburn 132. Personnel Management in Government: Politics and Process, Sixth Edition, Norma M. Riccucci and Katherine C. Naff 133. Handbook of Police Administration, edited by Jim Ruiz and Don Hummer 134. Handbook of Research Methods in Public Administration, Second Edition, edited by Kaifeng Yang and Gerald J. Miller 135. Social and Economic Control of Alcohol: The 21st Amendment in the 21st Century, edited by Carole L. Jurkiewicz and Murphy J. Painter 136. Government Public Relations: A Reader, edited by Mordecai Lee 137. Handbook of Military Administration, edited by Jeffrey A. Weber and Johan Eliasson 138. Disaster Management Handbook, edited by Jack Pinkowski 139. Homeland Security Handbook, edited by Jack Pinkowski 140. Health Capital and Sustainable Socioeconomic Development, edited by Patricia A. Cholewka and Mitra M. Motlagh 141. Handbook of Administrative Reform: An International Perspective, edited by Jerri Killian and Niklas Eklund 142. Government Budget Forecasting: Theory and Practice, edited by Jinping Sun and Thomas D. Lynch 143. Handbook of Long-Term Care Administration and Policy, edited by Cynthia Massie Mara and Laura Katz Olson 144. Handbook of Employee Benefits and Administration, edited by Christopher G. Reddick and Jerrell D. Coggburn 145. Business Improvement Districts: Research, Theories, and Controversies, edited by Gktug Morl, Lorlene Hoyt, Jack W. Meek, and Ulf Zimmermann 146. International Handbook of Public Procurement, edited by Khi V. Thai

Available ElectronicallyPrinciples and Practices of Public Administration, edited by Jack Rabin, Robert F. Munzenrider, and Sherrie M. BartellPublicADMINISTRATIONnetBASE

International Handbook of Public ProcurementEdited by

Khi V. ThaiFlorida Atlantic University Boca Raton, Florida, U.S.A.

Boca Raton London New York

CRC Press is an imprint of the Taylor & Francis Group, an informa business

Auerbach Publications Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 2009 by Taylor & Francis Group, LLC Auerbach is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number-13: 978-1-4200-5457-6 (Hardcover) This book contains information obtained from authentic and highly regarded sources Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The Authors and Publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright.com (http:// www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC) 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data International handbook of public procurement / [edited by] Khi V. Thai. p. cm. -- (Public administration and public policy ; 146) Includes bibliographical references and index. ISBN 978-1-4200-5457-6 (alk. paper) 1. Government purchasing--Handbooks, manuals, etc. 2. Government spending policy--Handbooks, manuals, etc. 3. Public contracts--Handbooks, manuals, etc. I. Thai, Khi V., 1941JF1525.P85I58 2009 352.53--dc22 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the Auerbach Web site at http://www.auerbach-publications.com 2008011592

DedicationTo my wife, Xuan, and my two children, Xuan-Thu and Edward

ContentsPreface ................................................................................................................................. xv Editor ................................................................................................................................xvii Contributors.......................................................................................................................xix

1 International Public Procurement: Concepts and Practices ........................................1KHI V. THAI

SECTION I: PUBLIC PROCUREMENT: A CONCEPTUAL FRAMEWORK 2 Framework for Assessing the Acquisition Function at Federal Agencies ...................27U.S. GOVERNMENT ACCOUNTABILITY OFFICE

3 Assessing Federal Procurement Reform: Has the Procurement PendulumStopped Swinging? .....................................................................................................67JOSEPH A. PEGNATO

4 Analytical Framework for the Management and Reformof Public Procurement ................................................................................................87PAUL R. SCHAPPER, JOO NUNO VEIGA MALTA, AND DIANE L. GILBERT

5 EU Directives as Anticorruption Measures: Excluding Corruption-ConvictedTenderers from Public Procurement Contracts ........................................................105TERESA MEDINA ARNIZ

6 Public Procurement Reforms in Africa: A Tool for Eective Governanceof the Public Sector and Poverty Reduction .............................................................131BENON BASHEKA

7 Simulation Approach to In-House versus Contracted-OutCost Comparisons ....................................................................................................157DONALD R. DEIS, HELMUT SCHNEIDER, CHESTER G. WILMOT, AND CHARLES H. COATES, JR.

8 Public Procurement Organization: A Comparisonof Purchasings Organizational Roles and Responsibilities in the Public and Private Sectors ..............................................................................175P. FRASER JOHNSON, MICHIEL R. LEENDERS, AND CLIFFORD MCCUE

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9 Service Sourcing .......................................................................................................187ALESSANDRO ANCARANI

10 How Many Vendors Does It Take to Screw Down a Price? A Primeron Competition in Procurement ..............................................................................211JEFFREY M. KEISLER AND WILLIAM A. BUEHRING

SECTION II: PROCUREMENT SYSTEMS 11 Public Procurement in the United Nations System ..................................................233TORU SAKANE

12 EC Regime on Public Procurement ..........................................................................251SUE ARROWSMITH

13 U.S. Federal Government Procurement: Organizational Structure,Process, and Current Issues ......................................................................................291KRISTI D. CARAVELLA ROBINSON

14 Public Procurement in Germany ........................................................................307MICHAEL ESSIG, SANDRA DOROBEK, ANDREAS GLAS, AND SABRINA LEUGER

15 Chinas Government Procurement Policy and Institutional Framework:History, Structure, and Operation ...........................................................................323CAO FUGUO

16 Overview of the Government Procurement System in South Africa ........................357PHOEBE BOLTON

17 Public Procurement in Cambodia ............................................................................375DAVID S. JONES

18 Procurement Systems in Uganda ..............................................................................393EDGAR AGABA AND NIGEL SHIPMAN

19 Public Procurement in Post-Transitional Context: The Case of Estonia ................. 409VEIKO LEMBER AND VEIKO VASKE

20 Procurement Process in the Public Sector: An International Perspective ............... 427NIGEL CALDWELL AND ELMER BAKKER

SECTION III: E-PROCUREMENT 21 Key Issues in E-Procurement: Procurement Implementationand Operation in the Public Sector ......................................................................... 445SIMON CROOM AND ALISTAIR BRANDONJONES

22 Factors Inuencing E-Procurement Usage ...............................................................459KEN DOOLEY AND SHARON PURCHASE

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23 Facilitators of Public E-Procurement: Lessons Learnedfrom the U.K., U.S., and Australian Initiatives .......................................................473KISHOR VAIDYA, GUY C. CALLENDER, AND A.S.M. SAJEEV

24 Evaluation of Public E-Procurement Services Accessibility:A Multicriteria Approach ..................................................................................491GIUSEPPE BRUNO, EMILIO ESPOSITO, AND MICHELE MASTROIANNI

25 World Bank E-Procurement for the Selection of Consultants:Challenges and Lessons Learned.............................................................................. 511KNUT LEIPOLD, JASON KLEMOW, FRANCINE HOLLOWAY, AND KISHOR VAIDYA

26 E-Procurement Management in State Governments: Di usionof E-Procurement Practices and Its Determinants ...................................................527M. JAE MOON

SECTION IV: PUBLIC PROCUREMENT METHODS AND PRACTICES 27 Best Practices: Using Spend Analysis to Help Agencies Take a More StrategicApproach to Procurement ....................................................................................... 543U.S. GOVERNMENT ACCOUNTABILITY OFFICE

28 Contract Negotiations ..............................................................................................563WENDELL C. LAWTHER

29 Controlling Service Process Performance with Statistical Process Control.............579RALPH G. KAUFFMAN AND PHILIP G. LIGHTFOOT

30 Fixed Asset Disposal: Methods and Strategies for Disposing of PersonalProperty in the Public Sector ...................................................................................591DARIN MATTHEWS AND ELIZABETH GIBSON

31 Enhancing Use of Past Performance as a Source Selection Criterion.......................613KEITH F. SNIDER AND MARK F. WALKNER

32 Ban-on-Negotiations in Tender Procedures: Underminingthe Best Value for Money..........................................................................................631KAI KRGER

33 Bid Protests: Theory and Practice ............................................................................659ROBERT E. LLOYD

34 Decision Technological Foundations of Public Procurement Processes ..................673CSABA CSKI AND PTER GELLRI

35 Pricing Strategies and Cost Analysis in Public Procurement ...................................689RUPERT G. RHODD

36 PublicPrivate Partnerships .....................................................................................703LAWRENCE L. MARTIN AND COREY T. STUTTE

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37 Markets Response to Contract Award Announcements: Governmentversus Corporate Contracts ......................................................................................725STEPHEN J. LARSON AND ARMAND PICOU

38 Economic Context of Public Procurement ...............................................................737GUY C. CALLENDER AND DARIN MATTHEWS

39 Oset Policy Design in International Procurement.................................................749TRAVIS K. TAYLOR

40 Regression Approach for Estimating Procurement Cost ..........................................763GARY W. MOORE AND EDWARD D. WHITE III

41 Procurement Design: Lessons from Economic Theory and Illustrationsfrom the Dutch Procurement of Welfare-to-Work Projects .....................................779SANDER ONDERSTAL AND FLRA FELS

Index .................................................................................................................................793

PrefaceThis book is a response to the persistent suggestion of Dr. Jack Rabin, former executive editor of the Public Administration and Public Policy Series. I agreed to undertake this challenging project several months before Dr. Rabins death in late 2006. It is challenging because its scope is extremely broad. First, from the perspective of procurement organization, how can a book cover the procurement systems of all the countries in the world? Should it cover only national government procurement systems? Should it focus on only public procurement systems and practices in industrialized countries and ignore the same in developing countries? Should it also cover procurement systems of public international organizations such as the World Bank and its development bank group, the United Nations, the International Monetary Fund, etc., as these organizations have a pronounced inuence on procurement practices in their client countries? Second, substantially, public procurement has become a very complex function of government that handles a great proportion of public expenditures (which reach 70 percent of total government expenditure, according to numerous World Bank reports) and procurement expenditures (or spends, a term found in numerous reports and publications). Indeed, public procurement is a system that consists of

Procurement laws and regulations, procurement organizational structure (central procurement agencies, procurement oces in user departments) Procurement processes (from procurement authorization, appropriations to contract formation, contract administration, etc.) Procurement methods (invitation to bid or request for bids, request for proposals, request for quotations, etc.) Procurement techniques (life-cycle costing, evaluation, negotiations, etc.) Procurement professionalism and workforce

Third, the public procurement function of government is further complicated when public procurement, due to the size of its spending, becomes a policy tool that policy makers use to address social issues (helping minority/women-owned enterprises, and small and medium rms), economic development (local preferences), and environment protection (green procurement). These policy concerns have made procurement practices more complicated. Finally, the recent globalization movement has further complicated public procurement as procurement ocials have to comply with not only national laws and regulations but also to international trade agreements. Thus, despite its deceptive size, this handbook cannot cover the entire spectrum of international public procurement. In addition to the broad scope of public procurement, there are other constraints.xv

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First, as we all know, public procurement has until recently been a neglected area of research. Consequently, getting a good number of submitted papers is always a major challenge. Fortunately, the international network that I have built via the International Public Procurement Conference and the International Research Study of Public Procurement workshops, including Professors Guy Callender (Curtin University of Technology, Australia), Christine Harland (University of Bath, England), Gustavo Piga (University of Rome Tor Vergata, Italy), and Jan Telgen (University of Twente, the Netherlands), has resulted in a good number of chapter proposals and full paper submissions. Second, chapters selected for this book had to be of a very high quality. A number of submitted chapters covering very meaningful issues failed to clear our rigorous review process. Finally, I would like to thank the sta of Taylor & Francis for their attention to detail, the timeliness of their work, and their suggestions throughout the publication process. I am indebted to Rosalyn Carter, dean, College of Architecture and Urban and Public Aairs, Florida Atlantic University (FAU), for asking me to manage a new partnership project between FAU and the National Institute of Governmental Purchasing, Inc. (NIGP). In this partnership, I had a chance to work with Rick Grimm, chief executive ocer, NIGP, to whom I am truly grateful for his belief that practitioner/academic partnership, and knowledge and innovation sharing elevate public procurement. Khi V. Thai

EditorKhi V. Thai is a professor at the School of Public Administration, Florida Atlantic University. Professor Thai has taught since 1978 (University of Maine, 19781990; and Florida Atlantic University, 1990present). His expertise is in public budgeting, nancial management, and public procurement. He served as a director of the School of Public Administration at Florida Atlantic University (19921996), and as a founder and former director of the Public Procurement Research Center at Florida Atlantic University (19992007). He organized a variety of training programs, particularly international training programs, and has provided technical assistance to governments in the United States and other countries in Africa and Latin America. He is the editor of three academic journals (Journal of Public Budgeting, Accounting & Financial Management, Journal of Public Procurement, and International Journal of Organization Theory and Behavior); has served on editorial boards of eight academic journals; and has authored/coauthored and edited/coedited over 100 refereed journal articles, technical reports, book chapters, and journal symposiums and books. Seven of his twelve books are on public procurement, including Introduction to Public Procurement (2nd ed.) (2007), Developing and Managing Requests for Proposals in the Public Sector (2nd ed.) (2008), Economics of Public Procurement (2007), and Advancing Public Procurement: Practices, Innovation and Knowledge Sharing (2007).

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ContributorsEdgar Agaba, MA, is an executive director and technical advisor of the Ugandan Public Procurement and Disposal of Public Assets Authority. He is a member of the Uganda Bar and has been involved with the World Bank and the Organisation for Economic Co-operation and Development in projects to strengthen procurement capacity in developing countries. Alessandro Ancarani, PhD, is an associate professor of managerial engineering, in the economical, managerial, and valuation engineering section, in the Department of Civil and Environmental Engineering at the University of Catania, Italy. Ancaranis expertise is in public services sourcing, performance evaluation, service quality, facilities management services procurement, supplier evaluation, and E-public services. He was one of the founders of the managerial engineering program at the University of Catania, and he is the Italian representative in the management committee of the C18 Cost Action program in the European Commission. He is associate editor of the Journal of Purchasing and Supply Management and is a reviewer for several international journals; he has authored/ coauthored and edited/coedited over 70 refereed journal articles, book chapters, conference proceedings, and books. Some of the books he has edited are Sourcing Decision Management (2005) and Performance Evaluation in Public Services (2003). He is member of the IPSERA executive committee. Teresa Medina Arniz is an administrative law professor and public sector coordinator at the Institute of Public Administration, Burgos University, Spain. She has conducted training programs in data protection, procurement, and E-administration for local and regional governments in Spain. She has been a visiting researcher at Autonomous University of Bucaramanga, Colombia, at Sheeld (U.K.) and University of Paris II Pantheon-Assas (France). She is a member of the Alfa network funded by the European Commission and has participated in several research projects on administration, local government, and procurement. She has authored/coauthored several articles. Sue Arrowsmith is a professor of public procurement law and director of the Public Procurement Research Group in the School of Law, University of Nottingham, adjunct professor at Copenhagen Business School, and a foundation professor of the Chartered Institute of Purchasing and Supply (CIPS). Her numerous procurement publications have been extensively cited by courts and legislators in North America, Asia, and Africa as well as Europe. Her authored books include The Law of Public and Utilities Procurement (Sweet & Maxwell, 2nd ed. 2005); (with Linarelli and Wallace) Regulating Public Procurement; National and International Perspectives (Kluwer, 2000); and Government Procurement in the WTO (Kluwer, 2003). In 1992, she launched the rst international academic procurement journal, Public Procurement Law Review, and she launched the international, interdisciplinary series of academic/practitioner conferences Public Procurement: Global Revolution in 1996. In 2007, she was awarded the CIPS Swinbank Medal for thought innovation in purchasingxix

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and supply. She has taught university modules on international procurement since 1995 and presented papers in more than 30 countries. She has been a member since 1997 of the European Commissions Advisory Committee for the Opening Up of Public Procurement; is a member of the UNCITRAL Experts Group on Procurement; and has been a consultant and trainer for inter alia, the U.K. Oce of Government Commerce, WTO, European Commission, OECD, European Central Bank, ILO, and Law Commission of England and Wales. She is project leader of the European Commission-funded Asia Link project for developing a global academic network on public procurement regulation. Elmer Bakker, PhD, is a business analyst at Bath & North East Somerset Council in the United Kingdom, where he advises on procurement issues. Before this recent move, Elmer worked as a research ocer at the Centre for Research in Strategic Purchasing and Supply (CRiSPS), School of Management, University of Bath. In this capacity he worked with many public and private sector organizations on procurement issues, the U.K. National Health Service Purchasing and Supply Agency, in particular. His research interests have focused on a variety of public procurement issues such as evidence-based procurement, the professionalization of procurement in the public sector, collaborative procurement, and E-procurement adoption. He has published several academic articles and book chapters and is a committee member of the U.K. Chartered Institute of Purchasing and Supply, West of England branch. Benon Basheka is currently a lecturer and consultant at the Uganda Management Institute, where he coordinates short and long training programs in procurement and supply chain management. His expertise and research interest are in public procurement, logistics management, research methods, project management, higher education policy, and organizational behavior. He is a trainer for the Ugandan Public Procurement and Disposal of Public Assets Authority where he has provided training services in public procurement to both central and local government stakeholders. He has also provided consultancy services to a number of private and nonprot and government organizations in the country. Phoebe Bolton is an associate professor of law at the University of the Western Cape, South Africa. She has written extensively on the eld of government contracts and government procurement and is the author of the recently published The Law of Government Procurement in South Africa. She is the recipient of numerous academic awards, including the Codesria prize for the best doctoral thesis in Africa in 2006, the Andrew Mellon Foundation fellowship, the Abe Bailey Travel Bursary, and most recently the DAAD scholarship for young academics and scientists. The latter award is enabling her to pursue research in Germany on government procurement and the protection of the environment. Alistair Brandon-Jones, PhD, is a lecturer in operations and supply management at the University of Bath, United Kingdom. His current research interests are in E-procurement implementation, service quality, and supply strategy, and he is the U.K. lead member for the International Purchasing Survey. His teaching expertise is in the areas of operations management, service operations, design and innovation, and supply chain management. Alistair has published in the International Journal of Operations & Production Management, Journal of Purchasing & Supply Management, and Journal of Public Procurement, and has contributed to the fourth and fth editions of Operations Management by Slack, Chambers, and Johnston. Giuseppe Bruno is an associate professor of operational research, Department of Business and Managerial Engineering, University of Naples Federico II, Italy. His research interests lie mainly in the

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elds of location and transportation planning, network design, logistics, and multicriteria analysis. He is associated with many national and international research institutes (National Research Council [CNR], Naples, Italy; Centre de Recherche sur le Transports, Montreal, Canada). Currently, he is the chair of the Italian Operation Research Society for Campania. He has authored several books and published papers in national and international journals. William A. Buehring is a senior consultant at the Decision and Information Sciences Division, Argonne National Laboratory, where he served as a member of the technical sta from 1977 to 2000. His expertise is in critical infrastructure analysis, decision analysis applications, and energy systems analysis. He has served as a senior staer at the Presidents Commission on Critical Infrastructure Protection (19961997) and has recently been involved in critical infrastructure protection in support of the U.S. Department of Homeland Security. He has authored over 80 publications, including journal articles, book contributions, international guide books, reports, and conference papers. Nigel Caldwell is a research fellow, Centre for Research in Strategic Purchasing and Supply, University of Bath, United Kingdom. He gained practical experience by working in the automotive industry. His research includes emergency ambulance services, PFI in hospital construction and in military aerospace, transformation of organizations into service-based business models because of their major products, ensuring continual innnovation in established relationships and the risks involved, and asset management support and creation and maintenance of contestable markets with the help of new technologies. He has authored/coauthored several refereed articles, is editor of Procuring Complex Performance (forthcoming), and serves on the editorial board of the Journal of Purchasing and Supply Management. His coauthored paper won the best paper prize at the inaugural International Public Procurement Conference in 2004, Florida. Guy C. Callender is a professor and chair of leadership in strategic procurement, Curtin Business School, Curtin University of Technology, Perth, Australia. Callender has had careers in banking and nance, tertiary education, and the building industry before joining the University of Technology, Sydney (19912002), and Curtin University of Technology (2002present). His expertise is in accounting, organizational behavior, and procurement. He is the principal of the Asia-Pacic Procurement Research Group at Curtin University of Technology. He is the editor of the Journal of Contemporary Issues in Business and Government, and serves on the editorial board of several journals. He is an active author of refereed journal articles, technical reports, books, book chapters, and monographs, and is a member of the Research Committee of the National Institute of Governmental Purchasing, Inc. In 2007, Guy was appointed a fellow of the Chartered Institute of Purchasing and Supply. Charles H. Coates, Jr. served in the U.S. Army Corps of Engineers from 1957 to 1978 in a variety of sta, engineering, and command positions, and entered private consulting civil engineering practice in Baton Rouge, Louisiana, until retirement in 1997. He possesses a wide range of experience in the construction and design of roadways, waterways, wastewater, transportation, and other areas, including engineering management. His main interest is in forensic engineering. Simon Croom, CIPS research fellow, is executive director and professor of supply chain management at the University of San Diego, California. His research interests include E-business, strategic management, and supply chain management.

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Csaba Cski is a lecturer at the University College Cork, Ireland, where he is also a PhD candidate. He worked for Bell Northern Research as a senior research analyst and development manager (1993 2000). He worked as a research fellow at the Budapest University of Technology and Economics, Hungary, from 2001 to 2007. His recent research interest covers decision methodologies and decision support systems, with a special focus on how the changing regulatory environmentmainly changes to the laws of public procurementaects the decision-making practice of large organizations. He has organized various vocational training programs in Hungary. He is a regular reviewer for journals, a guest editor for an issue of the Journal of Decision Systems, a member of the International Research Study of Public Procurement workshops program and of the Decision Support Systems Working Group of the International Federation of Information Processing (IFIP WG 8.3). He regularly presents papers at major conferences in the areas of both decision support and public procurement. Donald R. Deis is the Ennis and Virginia Joslin endowed chair in accounting and interim chair of the accounting and business law department, Texas A&M University, Corpus Christi. He has previously taught at Louisiana State University and at the University of Missouri, Columbia. He served as president of the government and nonprot section of the American Accounting Association (20012002), as a member of the AICPAs Government Performance and Accountability Committee (20032007), and as a member of the PCAOB task force on audit rm quality standards (20062007). He is on the editorial board of ve journals and has authored/coauthored more than 50 refereed articles. His research interests include privatization of government services, audit quality, and auditor independence. Ken Dooley recently retired from full-time employment after 32 years as a lecturer and senior lecturer in operations research at the Central Queensland University (CQU). He is now involved in consulting for manufacturing companies and in various research and education activities at a number of other Australian universities including Queensland University of Technology, University of Western Australia, Swinburne University, and University of Wollongong. In the last ve years with CQU he managed two major projectsdeveloping, setting up, and implementing a major development and training program for Queensland Purchasing, and the accreditation of the CQU degree in purchasing and materials management with the Chartered Institute of Purchasing and Supply. Recent publications include papers presented at various national and international professional conferences. Sandra Dorobek is a PhD candidate and a research assistant at the Institute for Law and Management of Public Procurement at the Bundeswehr University, Munich. She graduated in national economics at the Ludwig-Maximilians-University of Munich. Her research focus is on public supply chain management. Emilio Esposito is chair of the managerial engineering degree council and full professor of business economics and organization at the Department of Business and Managerial Engineering, University of Naples Federico II, Italy. His current research includes technology evaluation, ICT adoption and diusion, technological evolution in the ICT industry, competition and collaboration among rms, technological relationships between large and small rms, customersupplier relationships, E-procurement, and E-government. He is the author of more than 150 papers and books. His research has been published in several journals (French, German, English, and Italian ) including the European Journal of Purchasing and Supply Management, International Journal of Globalisation and Small Business, International Journal of Logistics, Research and Applications, Internationales Gewerbearchiv,

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Enterprise & Innovation Management Journal, Revue Internationale PME, Small Business, Technological Forecasting and Social Change, and Technovation. Michael Essig is a professor and chair for materials management and distribution as well as codirector of the Institute for Law and Management of Public Procurement at the Bundeswehr University, Munich. His main research interests are strategic supply management, supply networks, supply chain management, public procurement, and economic theory, especially new institutional economics. For his dissertation, he received the Hans Ovelgnne Scientic Award of the German Purchasing Association (BME). Michael Essig serves on the review board of the Journal of Supply Chain Management, the Journal of Purchasing and Supply Management, Supply Chain Management: An International Journal, and for the Research College of the Chartered Institute of Purchasing and Supply (CIPS). He is the coeditor of the leading German scientic logistics journal Logistik Management, a member of the scientic boards of the German Purchasing Association and of the European Defence Public Private Partnership Association, and a member of the scientic committee of the Austrian Ministry of Defence. Flra Fels is a PhD candidate at the University of Amsterdam, the Netherlands. She has worked as a researcher at SEO Economic Research (19982008) where she has been involved in contract research in the eld of competition and regulation. She has published book chapters on the law and economics of procurements, on disclosure limitation methods, and on the liberalization of postal services. Cao Fuguo is a professor of law at Law School, Central University of Finance and Economics (CUFE), Beijing, China, and director, the International Research Center for Law and Economics, China Public Procurement Research Group, and the EU Asia-link Program on public procurement regulation at CUFE. He is an expert group member and a Chinese delegate to the working group with respect to the revision of the UNCITRAL Model Law on Government Procurement and also a World Bank expert with respect to Chinese procurement law reforms. He is a member of the expert group of the Chinese Public Procurement Journal and of the editorial board of the U.K.-based Public Procurement Law Review. Cao is an expert on Chinese bidding law, Chinese government procurement law, law and policy in private nance in infrastructure and utilities, international government procurement laws (such as WTO-GPA), corporate law, and government contract law. He has directed and has been directing about ten research projects awarded by international and domestic institutions with respect to dierent areas of government procurement law. His publications include Government Procurement Regulation: International Standards and Practice (1998), Theory and Practice of Chinese Bidding Law (2002), Annotation to the Chinese Government Procurement Law (2002), and Corporate Governance and Minority Shareholder Protection (2006). He has also published more than 30 articles in leading journals such as China Jurisprudence, Legal Science, and Public Procurement Law Review. Pter Gellri has a PhD in psychology and is a scientic advisor at Corvinus University of Budapest, Budapest, Hungary. He is the founder of an MA program in decision support, a cooperation among several EU universities (University College Cork, Universit Pierre et Marie Curie Paris 6, and Corvinus University of Budapest), and is working for its realization. He is also the founder and head of the department of information and knowledge management, Budapest University of Technology and Economics (BUTE), Hungary (19912006). He was the founder and leader of a public procurement manager vocational education program (20032006); head of the UNODC working group The Sociological Mass-Media Aspects of Anticorruption Eorts in Hungary (2003); founder and director of the research center for nancial informatics (BUTE, 19992005);

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and vice head of the department of sociology (BUTE, 19851991). He has a series of technical patents (software and know-how) with applications mainly in the elds of publicprivate partnership and public procurement. He has been a cofounder and chief executing ocer of a few university spin-o companies, with activities in the decision support systems development industry and consulting in the eld of public procurement. His publications are mainly in the eld of decision support systems. He is a member of the editorial board of the upcoming Encyclopedia of Decision Making and Decision Support Technologies. Elizabeth Gibson has several years of management experience in the information technology industry, including responsible positions in engineering, project management, procurement, and international sourcing. As a consultant she has focused on business process reengineering, database development, and E-business. Elizabeth has served as an instructor for Portland Community College, the University of Phoenix, and the Northwest College of Construction. Diane L. Gilbert is a procurement consultant. Her research interest is in the areas of public sector reform and governance. Andreas Glas is a PhD candidate and a research assistant at the School of Business Administration at the Bundeswehr University, Munich. His research focus is on public procurement. Francine Holloway is a senior contracts ocer and the team leader for the oce of technology team of the World Bank Group, where she is responsible for purchasing hardware and software and leading electronic commerce initiatives. P. Fraser Johnson is an associate professor at the Richard Ivey School of Business, University of Western Ontario, Canada, where he teaches purchasing and supply, and logistics and operations. Before accepting a faculty position, Fraser worked in the automotive parts industry where he held a number of senior management positions in both nance and operations. Professor Johnson is an active researcher in the areas of purchasing and supply chain management and he is the author of several articles that have been published in a wide variety of journals and magazines. Fraser is a member of ISMs education resources committee, currently is an associate editor for the Journal of Supply Chain Management, and sits on the editorial advisory board for the International Journal of Logistics Management and the editorial review board for the Journal of Purchasing and Supply Management. Professor Johnsons textbook, Purchasing and Supply Management (with Michiel Leenders, Harold Fearon, and Anna Flynn), published by McGraw-Hill/Irwin, is now in its thirteenth edition. In recognition of his ongoing research in purchasing, Dr. Johnson was awarded the ISMs senior research fellowship in 1999. David S. Jones is an associate professor, Department of Public Policy and Administration, Faculty of Business, Economics, and Policy Studies, University of Brunei. His research interests include public sector reform, public nancial management, government procurement, and land policy and administration. Previously, he held various academic posts in Singapore and elsewhere. These include associate professor, Department of Political Science, National University of Singapore; adjunct professor, School of Economics, Singapore Management University; and local director in Singapore for the masters in public administration program conducted by the Australian National University. He has published numerous articles in international journals in his elds of expertise, and essays in edited collections, as well as a book on land reform in Ireland. He has also

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undertaken extensive consultancy work in recent years and conducted professional training programs in Southeast Asia in policy evaluation, public budgeting, and government procurement. Ralph G. Kauman is an associate professor emeritus, College of Business, University of Houston Downtown, Texas, where he was a supply chain management program coordinator. He has also taught at the University of Texas at Dallas, LeTourneau University, Texas, and the Berufsakademie Mosbach in Bad Mergentheim, Germany. Also, he has guest lectured at the Fachhochschule fur Wirtschaft, Berlin and the University of Stuttgart, Germany, among other institutions. In addition to his academic experience, he has over 27 years of industrial procurement and supply experience. His research interests include supply management and the organizational choice process. He is the coeditor of the sixth and seventh editions of the Supply Management Handbook and has served on the editorial review board of the Journal of Supply Chain Management. He has published numerous articles in various procurement, supply management, and general management journals. Over a 12-year period ending in 2006, he chaired rst the Institute for Supply Management (ISM) Manufacturing Business Survey Committee and then the ISM Non-Manufacturing Business Survey Committee. In 2002 he received the J. Shipman Gold Medal, the most distinguished award presented annually by the ISM. Jerey M. Keisler is an associate professor in management science and information systems, College of Management, University of Massachusetts, Boston, where he has been since 2000. He previously had ten years consulting experience with General Motors, Argonne National Laboratory, and Strategic Decisions Group, and has been a consultant for government agencies including DOD, DOE, NRC, and EPA, as well as Global 1000 companies in pharmaceutical, energy, nancial, and consumer products industries. He is an expert in decision analysis, with regard to procurement, project management, and portfolio resource allocation. He has published numerous reports and articles in journals such as Interfaces, Decision Analysis, and Risk Analysis. Jason Klemow is an international consultant with over 15 years of professional experience focusing on collaborative technology, strategic planning, and project management. His expertise is in supplier relations management and E-procurement. He has authored/coauthored various journal articles with respect to business technology, international procurement, and project management. In addition, he has been a guest speaker for a variety of organizations including SAP ASUG, the Gartner Group, the Institute for Supply Management, and the Delphi Group. Kai Krger, dr. juris, is a senior professor at the law faculty, Bergen University, Norway. He is a member of the Norwegian Complaint Board for public procurement. He teaches contract law, intellectual property, and EU and EEA law on procurement in the EU Erasmus program. His publications are on the areas of contract law, sales of goods, consumer law, tort law, intellectual property law, and procurement law. Stephen J. Larson is an assistant professor, School of Business, Eastern Illinois University, Charleston. He teaches nancial markets, and his research interests are in stock market overreaction, international markets, and insurance issues. Wendell C. Lawther is an associate professor of public administration at the University of Central Florida. He is currently the book review editor for the Journal of Public Procurement. His publications include Capital Acquisitions: Decisions of Lasting Value (with John Adler, 2007); Privatizing

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Toll Roads: A PublicPrivate Partnership (2000); and an IBM Business of Government monograph, Contracting for the 21st Century: A Partnership Model (2002). He has also published numerous articles and book chapters dealing with public procurement, publicprivate partnerships, transportation policy, and human resource management. Michiel R. Leenders is the Leenders Purchasing Management Association of Canada chair and professor emeritus, Richard Ivey School of Business, University of Western Ontario. He has written a large number of articles in a variety of magazines and journals. His supply management texts have been translated into ten dierent languages and include Value-Driven Purchasing: The Key Steps in the Acquisition Process, Reverse Marketing, The New BuyerSupplier Relationship, and Improving Purchasing Eectiveness through Supplier Development. He has also coauthored nine editions of the case method texts Learning with Cases, Writing Cases, and Teaching with Cases and nine editions of Purchasing and Supply Management. Mike has taught and consulted extensively both in Canada and internationally. He received PMACs fellowship award in 1975, was elected to the PMAC chair in 1993, received the Financial Post Leaders in Management Education Award in 1997, and the Hans Ovelgnne Purchasing Research Award in 2001. He is the director of the Ivey Purchasing Managers Index and a director of the ING Bank of Canada since its inception. Knut Leipold is a senior procurement specialist at the World Bank. He works as an E-government procurement (E-GP) and IT procurement expert in the banks procurement policy and services group (OPCPR). Knut has led the banks eorts of providing support and advice in designing and implementing E-GP programs in numerous low- and middle-income countries. Knut chairs the E-GP working group of multilateral banks Procurement Harmonization Initiative and is a member of the E-procurement working group of the European Commission and of the procurement expert group of UNCITRAL. He has developed E-GP guidance in line with the banks procurement policy and has assessed several E-GP country systems for their use under bank-funded operations. He has authored/coauthored various journal articles and is a speaker at multiple international procurement conferences in America, Asia, and Europe. Before his more than seven-year assignment at the bank, Knut had worked as director in the public sector and as an E-government business development manager in the private sector for more than ten years. Veiko Lember is a PhD candidate and a research fellow, Institute of Humanities and Social Sciences, Tallinn University of Technology, Estonia. His main interests are in public procurement, contracting and public management, and sports management. His most recent research project includes public procurement for innovation. He has provided consultancy for governments in Estonia as well local governments in Denmark, Finland, Sweden, and in other Baltic Sea countries. He has published several book chapters and journal articles. Sabrina Leuger is a research assistant at the Institute for Law and Management of Public Procurement at the Bundeswehr University, Munich. Her research focus is on public procurement law. Philip G. Lightfoot is a retired deputy assistant director, Department of Public Works and Engineering, City of Houston, Texas. His expertise in procurement, both public and private, spans a career that included executive and managerial procurement positions with the city of Houston, Texas, and with private corporations.

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Robert E. Lloyd is director of the Regional Procurement Support Oce in Fort Lauderdale and in his spare time contributes to the Public Procurement Research Center at Florida Atlantic University. He began his career as a buyer at the Defense Fuel Supply Center, Cameron Station, of the Defense Logistics Agency. He was a founding member of the acquisition policy oce at the Navys Military Sealift Command, director of the Acquisition Policy and Review Oce of the U.S. Department of the Treasury in Washington, and served on the Civilian Agency Acquisition Council. Lloyd then returned to the Department of Defense as a procurement analyst for the now-defunct Defense Communications Agency, a senior procurement policy analyst at the Department of Housing and Urban Development. For the rest of his career he has been employed by the U.S. Department of State. He served on the interagency committee that drafted the commercial item acquisition portion of the Federal Acquisition Regulation. He has authored over 20 articles on public procurement and related topics published in professional journals and books. Joo Nuno Veiga Malta is a senior procurement specialist at the World Bank. His expertise is in E-procurement and E-government. In 2002, he joined the Inter-American Development Bank as the program coordinator, Electronic Government Procurement in the Project Procurement Division. He led a variety of important initiatives and was also a member of several international working groups on E-procurement. Lawrence L. Martin, PhD, is a professor of public aairs, public administration, and social work at the University of Central Florida in Orlando. Martin has published extensively in the areas of government procurement and contracting, particularly service contracting. He has authored/ coauthored 20 books and major monographs and over 100 professional articles and book chapters. His works have been published by the National Institute of Governmental Purchasing, the National League of Cities, the International City/County Management Association, the Reason Foundation, and others. Many of Martins publications have been translated into other languages including Chinese, French, Korean, Portuguese, Russian, and Mongolian. In 2007, Martin served as a consultant to the Mongolian Ministry of Social Welfare and Labor on the development of policies and procedures for the contracting out of government services. Michele Mastroianni, PhD, is currently the system and network manager at the Second University of Naples. He has taught computer networks and database systems at the Faculty of Engineering of the University of Naples, Federico II. His research interests lie mainly in the elds of IT adoption and diusion, technological evolution in the personal computer industry, performance analysis of computer system and networks, and IS planning and management. He has been involved in various organizational committees of national and international conferences. He has authored various papers published in national and international journals and conferences. Darin Matthews, CPPO, CPM, is currently the chief procurement ocer for Metro, the regional government of Portland. He has nearly 20 years of purchasing and supply management experience in state and local governments, as well as private industry, and has served on local purchasing boards in Oregon and on the NIGP board of directors since 2001. Darin serves on the governing board of the Universal Public Purchasing Certication Council and is an adjunct instructor at Florida Atlantic University. Darin speaks throughout North America on a variety of procurement topics, and his writings have been featured in Government Procurement, Contract Management, and the Journal of Public Procurement. He has authored book chapters for NIGPs Logistics and Transportation,

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Warehousing and Inventory Control, and the Encyclopedia of Public Administration and Public Policy. He holds a graduate certicate in acquisition management. Cliord McCue is an associate professor, and director of the Public Procurement Research Center, School of Public Administration, College of Architecture, Urban, and Public Aairs, Florida Atlantic University, Fort Lauderdale. He has published over 30 articles in the top journals in public administration, nance, budgeting, and public sector procurement. His articles have examined such critical policy issues as state and local government nancial planning, evaluating organizational eectiveness, productivity, decision making and risk management, public employee behavior, and public procurement. In addition, he recently has authored four books: Leadership and Management of the Procurement Function; Planning, Scheduling and Requirement Analysis; Local Government Budgeting: A Managerial Approach; and Immigration and Its Impact on American Cities. Currently, McCue serves as a consultant for a host of international organizations and governments on public sector procurement. M. Jae Moon is currently teaching at the Department of Public Administration of Korea University, Seoul. His teaching and research interests include public management, information technology, and comparative public administration. Gary W. Moore, USAF, is an instructor at the School of Systems and Logistics, Air Force Institute of Technology, WrightPatterson AFB, Ohio. His areas of expertise involve nance, acquisition, and risk management, and he has a master of science in acquisition management. Sander Onderstal is an assistant professor of economics, University of Amsterdam, the Netherlands. His research interests include auctions, competition policy, and experimental economics. He has published on auctions in numerous journals such as Economic Theory, International Economic Review, and the Journal of Political Economy. Onderstal has advised several Dutch ministries and private parties on (procurement) auctions for welfare-to-work programs, gasoline stations, and frequencies for commercial radio stations and mobile telecommunications. Joseph A. Pegnato is director, Oce of Acquisition Management, U.S. General Accounting Oce. His research interests include organization theory, federal procurement, and the applicability of entrepreneurial models in the public sector. Armand Picou is an associate professor, Department of Economics and Finance, University of Arkansas. His teaching and research interests are in empirical time series, mergers and acquisitions, and anomalies. Sharon Purchase is a senior lecturer at the University of Western Australia Business School, Perth, Australia. Her current research interests include buyerseller relationships, business networks, and procurement. Her publications have appeared in Industrial Marketing Management and International Marketing Review. Rupert G. Rhodd is an associate professor of economics in the College of Business at Florida Atlantic University. Rhodd has taught since 1986 (Iona College, New York, 19861988; and Florida Atlantic University, 1989present). His expertise is in the areas of applied macroeconomics, economic modeling, and regional economics. His published research can be found in many journals including the Journal of International Development, Journal of Policy Modeling, Atlantic Economic Journal,

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Quarterly Review of Economics and Finance, Journal of Third World Studies, Handbook of Economic Development, Applied Economics, Encyclopedia of Public Administration & Public Policy, and the Indian Journal of Business & Economics. Rhodd has also coauthored Contemporary Issues in the Development of Caribbean Economies (2007). Kristi D. Caravella Robinson, a PhD candidate, serves as an assistant to the city manager for the city of Davie, Florida. Her areas of expertise include public budgeting and nancial administration. Her research interest is in using communication strategies to enhance public administration and governance at the state and local levels. A.S.M. Sajeev is a professor and chair of IT and computer science in the School of Mathematics, Statistics, and Computer Science, University of New England, Australia. His research interests are in the areas of software engineering and Web engineering. Toru Sakane is a fellow, Japan Society for the Promotion of Science. He is a researcher at the Graduate School of Law and Politics, University of Tokyo, Japan. His main research interests are public procurement within the United Nations System, administrative and budgetary studies of the United Nations, international public administration, and also public procurement in Japan. He has authored a book (in Japanese), Procurement Administration and the United Nations System (2005), and several papers and journal articles. Paul R. Schapper is an international development consultant with experience in more than 20 countries and was previously a professorial fellow, School of Business, Curtin University of Technology, and director-general of the Department of Industry and Technology in Western Australia. His research interests are public procurement, E-government, E-governance, and telecommunications for development. He is also on the editorial board of the Journal of Digital Evidence and has authored numerous publications. Helmut Schneider is a professor and chairman of the information systems and decision sciences department, Louisiana State University. He has taught statistics at the Free University in Berlin from 1978 to 1983. He was a visiting professor to the University of North Carolina at Chapel Hill and the University of Arkansas in Fayetteville. He has published two books and over 50 articles in refereed journals and is a member of several professional organizations including the Association for Information Systems, the Information Systems Audit and Control Associations, the American Statistical Association, and the American Society for Quality. His research interests include operations management issues of the supply chain, risk analysis in information systems development, and risk analysis of trac crashes. Nigel Shipman was formerly head of the government procurement service in Hong Kong and has been a visiting lecturer at the Hong Kong Polytechnic University. He served as an advisor, Public Procurement and Disposal of Public Assets Authority, Uganda. Keith F. Snider is an associate professor of public administration and management in the Graduate School of Public Administration and Policy at the Naval Postgraduate School, Monterey, California. His teaching and research interests lie in the areas of defense acquisition policy, defense project management, public organizations, and public administration theory and history. Since 2003, he has also served as principal investigator for a program of sponsored research on defense acquisition topics. In this capacity, he manages Department of Defense-sponsored research projects conducted at NPS and numerous other universities, in addition to conducting the annual Acquisition Research

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Symposium in Monterey. Snider has also performed numerous research and technical assistance projects for several U.S. and international sponsors, including ministries of defense in Egypt, Chile, Bulgaria, Slovenia, and the Republic of Slovekia. Corey T. Stutte is a planner for the Polk County Board of County Commissioners in Bartow, Florida. He is also a doctoral student in public aairs at the University of Central Florida in Orlando. His expertise is in publicprivate partnerships, governance, and planning. Travis K. Taylor is an associate professor of economics, College of Business and Leadership, Christopher Newport University. He teaches courses in microeconomic theory, macroeconomic theory, international contracting, and defense economics. His research interests include international public procurement, contract theory, and industrial policy. He is an expert on the economics of oset contracts, and has contributed articles to journals such as the Journal of Public Procurement, Journal of Policy Modeling, and the Journal of International Business & Economics. Kishor Vaidya is a research analyst with the Australian Government Department of Education, Employment, and Workplace Relations. Following the completion of his PhD from the University of New England (New South Wales, Australia), he has accepted the position of honorary research associate with the responsibility of supporting and guiding PhD students at the School of Science and Technology. His expertise is in adoption/performance measurement of interorganizational information system (IOIS), E-government/E-commerce applications particularly E-procurement, and public procurement. He has recently developed research interest in using IOIS for combating corruption in public procurement. He has published extensively in refereed journals and international conference proceedings and has worked with a number of Australian organizations including ANZ Bank, Qantas Airways, and the Australian Government Department of Finance and Administration. Veiko Vaske has a BA in law, and is a member of the review commission at the Public Procurement Oce of the Republic of Estonia, an independent body adjudicating public procurement disputes as the rst instance of the judicial system. Vaske graduated from the Faculty of Law of the University of Tartu, Republic of Estonia, in 2003. Since then and until 2007 he served as a chief specialist at the public procurement unit of the Ministry of Finance of the Republic of Estonia where he was engaged in drafting public procurement law and implementing European public procurement legislation in Estonia. In May 2007 he was appointed to a 5-year incumbency at the review commission. He is also pursuing a master of public administration degree at the University of Tartu. His expertise and research interests are in public procurement law and European community law. Mark F. Walkner is an administrative contracting ocer for the Defense Contract Management Agency (Rockwell Collins) in Cedar Rapids, Iowa. He obtained a BS from Iowa State University and an MSc in acquisition and contract management from the Naval Postgraduate School. He served several tours of duty as an ocer in the U.S. Marine Corps, including an assignment as contracting ocer at the Marine Air Ground Task Force Training Command in Twentynine Palms, California. Most recently, he was deployed from his current position to serve as an administrative contracting ocer in Afghanistan in support of army operations. Edward D. White III is an associate professor of statistics, Department of Mathematics and Statistics, Air Force Institute of Technology, WrightPatterson AFB, Ohio. His teaching and research interests

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are in design of experiments, linear and nonlinear regression, and statistical consulting, and he has a doctorate in statistics. Chester G. Wilmot is an associate professor, civil and environmental engineering department at Louisiana State University Baton Rouge, Louisiana, and was a professor at Rand Afrikaans University, Johannesberg, South Africa. He served as a researcher for the Council for Scientic and Industrial Research in South Africa and was a partner in a transportation research consultancy there. He has published numerous monographs, research reports, and more than 25 articles in refereed journals. His research interests include hurricane evacuation demand estimation, trac safety, data collection for transportation planning, and transferability of transportation planning data.

Chapter 1

International Public Procurement: Concepts and PracticesKhi V. Thai CONTENTS1.1 Introduction .............................................................................................................. 2 1.2 Public Procurement Framework ................................................................................ 3 1.3 Governmental Framework and Environment ............................................................ 4 1.3.1 Governmental Framework ............................................................................. 4 1.3.2 Cultural, Administrative, Economic, Legal, and Social Environment ........... 5 1.3.2.1 Economic or Market Conditions .................................................... 5 1.3.2.2 Legal Environment ........................................................................ 6 1.3.2.3 Political Environment .................................................................... 7 1.3.2.4 Social Environment ........................................................................ 7 1.3.2.5 International Trade Agreement ...................................................... 7 1.4 Public Procurement System ...................................................................................... 8 1.4.1 Laws and Regulations .................................................................................... 8 1.4.2 Public Procurement Organization ................................................................. 9 1.4.3 Public Procurement Workforce ....................................................................10 1.4.4 Public Procurement Process and Methods ....................................................11 1.4.4.1 Procurement Planning ...................................................................11 1.4.4.2 Preparing and Processing Procurement Requests .......................... 12 1.4.4.3 Developing and Reviewing Requirements Documents ................. 12 1.4.4.4 Planning for Evaluation .................................................................151

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1.4.4.5 Contract Award .............................................................................18 1.4.4.6 Preparation and Signing of Contract .............................................18 1.4.4.7 Contract Administration ...............................................................19 1.5 Implications of the Public Procurement Framework ................................................19 1.6 Procurement Integrity and Corruption ................................................................... 20 Notes .............................................................................................................................. 22 References ........................................................................................................................ 22

1.1 IntroductionPublic procurement is continuing to evolve both conceptually and organizationally. That evolution accelerated during the 1990s as governments at all levels came under increasing pressures to do more with less. Indeed, all governmental entities of rich and poor countries are struggling in the face of unrelenting budget constraints; government downsizing; public demand for increased transparency in public procurement; and greater concerns about eciency, fairness, and equity. Additionally, public procurement professionals have faced a constantly changing environment typied by rapidly emerging technologies, increasing product choice, environment concerns, and the complexities of international and regional trading agreements. Further, policy makers have increasingly used public procurement as a tool to achieve socioeconomic goals. In this environment, public procurement has become much more complex than ever before, and public procurement ocials must deal with a broad range of issues. They have been walking on a tightrope in:

Balancing the dynamic tension between (1) competing socioeconomic objectives, (2) national economic interests, and (3) global competition as required by regional and international trade agreements Satisfying the requirements of fairness, equity, and transparency Maintaining an overarching focus on maximizing competition Utilizing new technology to enhance procurement eciency, including e-procurement and purchase cards

Procurement ocials have to constantly weigh the trade-os between conicting procurement objectives, for example: Quality and Cost Trade-o. Public procurement ocials constantly face dicult choices between cost and quality. Should they pick Firm A, which proposes $25,000 for an item at a quality of 90 percent of the best item available in the market, or Firm B, which proposes $27,000 for a similar item at a quality of 97 percent of the best item available? Quality cannot be considered without regard to cost, just as cost cannot be considered without regard to quality. Timeliness and Cost Trade-o. Assume that a public procurement ocial has two oers for an item. Firm A, a local rm, proposes $50,000 for a contract and will deliver the item within two days after receiving an order, and Firm B, located in another part of the state, proposes $45,000 for the same item, and it takes him or her two extra days as compared with Firm A. Which rm should receive the contract? Risk and Cost Trade-o. Public procurement ocials may decide to pay a higher price to a responsible rm than gamble on a rm that cannot arm its responsibility. Likewise, public procurement

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3

ocials may decide to pay a higher award price to a rm which based on an evaluation of his or her relative technical and business management strengths is more likely than a competitor to succeed in meeting the governments objectives. There may also be an inverse relationship between the goals of minimizing risk and maximizing competition. If minimizing technical risk were the only procurement goal, public procurement ocials would tend to award only to rms who successfully performed the same or similar work on their previous contracts. Socioeconomic Objectives and Cost Trade-o. Government entities often pay a premium, explicitly or implicitly, to accomplish socioeconomic goals. The Buy American Act authorizes government entities, under certain circumstances, to pay a higher price for domestic-made goods vis--vis foreignmade goods. On the other hand, socioeconomic programs, despite their cost, have arguably contributed to accomplishing other procurement goals. The small business program, despite its cost, has provided considerable work for small businesses and in doing so can be said to have been eective in creating new sources of supply, thus maximizing competition. Competition and Cost Trade-o. The primary benet of competition is its demonstrated success in reducing contract prices. On the other hand, this benet of competition is subject to diminishing returns. And, the government incurs an additional cost for every oer it considers (e.g., the salary expenses of government workers who read the oer, technically evaluate it, apply price-related factors, andif the oer has a reasonable prospect for award in negotiated acquisitionsdiscuss it with the oeror). This suggests that there is an optimum level of competition for any given acquisition. This is among the reasons that the Federal Acquisition Regulation now allows for eciency in terms of narrowing the number of oerors in the competitive range with whom a contracting ocer must negotiate prior to award. In this chapter, a public procurement framework that depicts basic components of public procurement as a function of government will be presented. Then, implications of this framework will be briey explored. Actually, this framework became a basis for the chapter selection of this book. As public procurement has been a neglected area of study and research (Thai, 2000), and as much attention has been focused on procurement laws and regulations as evidenced by the existence of such academic journals as Public Procurement Law Review (published by Sweet and Maxwell), and Public Contract Law Journal (published by the American Bar Association Section of Public Contract Law), searching a public procurement framework that reects the scope of public procurement is a challenge. In the remaining part of the chapter, more attention will be given to procurement integrity and corruption, a problem that has been recently addressed by such international organizations as the World Bank, the United Nations, the Organization for Economic Cooperation and Development (OECD), and major donor countries including the U.S. Agency for International Development (USAID) and the U.K. Department for International Development.

1.2 Public Procurement FrameworkThe United Nations viewed public procurement as an overall process of acquiring goods, civil works and services which includes all functions from the identication of needs, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration through the end of a services contract or the useful life of an asset (United Nations Development Programme, UNDP, 2007). Although procurement process is the heart of a sound procurement system (Harink, 1999), public procurement, according to Harink (1999, p. 15), involves more than the procurement process alone and it should not only consist of supporting, but also important

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components including strategy and policy of the organization, methods and procedures, personnel and organization, and information. In the last decade, several authors and organizations have suggested conceptual procurement models. The World Bank has developed a framework of procurement assessment under its Country Procurement Assessment Review. This framework consists of four elements: legal framework, institutional framework and capacity, procurement operations and practice, and integrity of the procurement system. This framework provides basic guidelines or a procurement benchmarking tool for assessing the quality and performance of country procurement systems. Detailed areas covered under this framework include (1) legal framework, (2) institutional framework, (3) procurement execution capacity, (4) procurement procedures/ tools, (5) control system, (6) anticorruption initiatives, (7) private sector participation, (8) contract management, and (9) system for addressing complaints (Araujo, 2004). In the United States, the Government Accountability Oce (2005) suggested a conceptual framework for assessing the procurement function that is based on four cornerstones: organizational alignment and leadership, policies and processes, human capital, and knowledge and information management. Most recently, in 2006, the OECD developed a procurement assessment model, based on indicators from OECD-DAC (Development Assistance Committee)/World Bank Round Table, which was convened in the period 2003 to 2004 (OECD-DAC, 2006). The model consists of four pillars including legislative and regulatory framework, institutional framework and management capacity, procurement operations and market practices, and integrity and transparency of the public procurement system. Analyzing the above models, this author revisited his previous model (Thai, 2001) and the revised model consists of (1) public procurement system and (2) a government framework and environment within which the procurement system is operated. The public procurement system can be operated eectively or ineectively depending on its four pillars: procurement organization, procurement laws and regulations, procurement workforce, and procurement process and procedures.

1.3 Governmental Framework and Environment1.3.1 Governmental FrameworkThe term government implies the organizational structure and leadership within a country. In this framework, public procurement is one of many government functions, and the procurement system can be prescribed in the national constitution (like in South Africa where the public procurement is provided in its constitution), or determined through procurement laws and regulations and through policy and budget decisions by legislators and the executive branch. It is important that the public procurement system is mainstreamed and well integrated into the public sector governance system (OECD-DAC, 2006, p. 20). Organizationally, public procurement is dictated by the government system. In general, there are two major government systems: unitary and federal. In a unitary system, the central government exercises various levels of control over local governments in various countries, be it provincial or local governments. Local government procurement structure and process are dictated by the national government. For example, in Uganda, the central government regulates local governments public procurement structure and process. An amended Local Governments Act was enacted in 2006 to provide for the replacement of tender boards of local governments with contract committees, and to regulate the procurement procedures of local governments.

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At the other extreme, in the federal system, state and local governments enjoy a high level of autonomy. Each state and each local government are free to create their own procurement structure, methods, and processes. Thus, the public procurement system in the federal system is very fragmented; and there exists a great variation in procurement organizational structure, methods, and processes. The United States of America and Canada are an exemplar federal system. However, in many unitary type countries, too much centralization tends to hinder procurement eciency. Within a country, be it in the unitary system or the federal system, public procurement organizations at each level of government can be decentralized or centralized. A decentralized structure must be carried out within the context of a larger organization. In a survey of NIGP (1997) members conducted in 1997, 48 percent of the 700 responding chief procurement ocers of local and state governments in the United States reported to the director of the nance department or equivalent; and 21 percent reported to the director of general services department. In all cases, public procurement ocials spanned the boundary between their internal clients and suppliers or contractors. Those who do it well pay particular attention to eective interpersonal relations and the active maintenance of a broad network of business contacts.

1.3.2

Cultural, Administrative, Economic, Legal, and Social Environment

As each country has its own culture and its cultural, administrative, economic, legal, and social traditions, adopting any preconceived procurement system is not eective and appropriate.

1.3.2.1 Economic or Market ConditionsEconomic or market conditions have a great inuence over the public procurement systems eort to maximize competition. Moreover, the market determines whether or not socioeconomic objectives of procurement are accomplished; whether or not a governmental entity can fulll its needs; the timeliness of fulllment; and the quality and costs of purchased goods, services, and capital assets. As there are dierent levels of economic growth among countries in the world, market conditions may be very favorable in industrialized countries, while they may be less favorable in developing countries. Economists classify three fundamental types of competition: pure, imperfect, and monopoly. At one end of the scale is pure (or perfect) competition. At the opposite end of the scale is monopoly. In between the two, we have a situation dened as imperfect competition, such as oligopoly. Pure or perfect competition exists only under the following circumstances:

Market contains a large number of buyers and sellers of approximately equal importance. Products traded are homogeneous (a buyer would not desire one particular sellers product over any others). Buyers and sellers always have a full knowledge of the market. Buyers always act rationally a