How does performance history impact supplier selection in public sector?

Purpose – The purpose of this paper is to study if the performance history impacts supplier selection in the French public sector context. While French public procurement legislation forbids consideration of the past contract wins in supplier selection, public contractors may still rely on contract win history for highly complex transactions. Design/methodology/approach – Using French Official Journals (BOAMP), the authors collected all public procurement transactions of 976 suppliers that had at least one transaction per year, over a period of six years (between 2006 and 2011). The authors conducted a two-level hierarchical linear auto-regression analysis and a feature evaluation analysis for all transactions. Findings – The paper finds significant variation between the transactions of different markets, as well as in the overall positive impact of past wins and in the detailed impact patterns and thresholds of each market. The findings may allow refinement of existing contract awarding strategies and of...

[1]  C. Csáki,et al.  Ethical Decision Making and Decision Support Systems in Public Procurement - A Theoretical Discussion , 2012 .

[2]  J. Murray Local government and private sector purchasing strategy: a comparative study , 2001 .

[3]  Koen Vanhoof,et al.  Evaluation of ordinal attributes at value level , 2007, Data Mining and Knowledge Discovery.

[4]  J. Murray Public procurement strategy for accelerating the economic recovery , 2009 .

[5]  B. Burnes,et al.  Outsourcing: a public‐private sector comparison , 2003 .

[6]  M. Mougeot,et al.  Discriminatory public procurement policy and cost reduction incentives , 1998 .

[7]  George A. Boyne,et al.  Public and Private Management: What's the Difference? , 2002 .

[8]  H. Walker,et al.  Promoting competitive markets: The role of public procurement , 2005 .

[9]  C. Hood,et al.  Paradoxes of public-sector managerialism, old public management and public service bargains , 2000 .

[10]  Jan Stentoft Arlbjørn,et al.  Public procurement vs private purchasing: Is there any foundation for comparing and learning across the sectors? , 2012 .

[11]  A. Erridge,et al.  PUBLIC PROCUREMENT, PUBLIC VALUE AND THE NORTHERN IRELAND UNEMPLOYMENT PILOT PROJECT , 2007 .

[12]  David Ford,et al.  Understanding business marketing and purchasing : an interaction approach , 2002 .

[13]  E. Uyarra,et al.  Understanding the Innovation Impacts of Public Procurement , 2009 .

[14]  Michael J. Gravier,et al.  Public versus private sector procurement ethics and strategy: what each sector can learn from the other , 2012 .

[15]  Eric Maskin,et al.  Unforeseen Contingencies and Incomplete Contracts , 1999 .

[16]  Clifford P. McCue,et al.  A comparison of purchasing’s organizational roles and responsibilities in the public and private sector , 2003 .

[17]  Su Chang,et al.  Past Performance as an Indicator of Future Performance: Selecting an Industry Partner to Maximize the Probability of Program Success , 2012 .

[18]  A. Banaitis,et al.  Analysis of criteria for contractors’ qualification evaluation , 2006 .

[19]  Michael Essig,et al.  Public–private partnership—Development of long-term relationships in public procurement in Germany , 2005 .

[20]  Wendy Phillips,et al.  Public procurement of innovations, diffusion and endogenous institutions , 2011 .

[21]  S. Kelman,et al.  Procurement and Public Management , 1990 .

[22]  Jerrell D. Coggburn Exploring differences in the american states’ procurement practices , 2003 .

[23]  Frederick T. Wehrle,et al.  Out of sight, out of mind? Supplier spatial proximity in French public procurement , 2014 .

[24]  Anthony Mills,et al.  Client and contractor attitudes to prequalification , 2005 .

[25]  E. Uyarra,et al.  Barriers to innovation through public procurement: A supplier perspective , 2014 .

[26]  Yuhua Qiao,et al.  THE USE OF QUALIFICATIONS-BASED SELECTION IN PUBLIC PROCUREMENT: A SURVEY RESEARCH , 2003 .

[27]  Michael Quayle The impact of strategic procurement in the UK government sector , 1998 .

[28]  Jan-Erik Lane,et al.  New Public Management , 2021, Bangladesh Journal of Public Administration.

[29]  David G. Mathiasen The new public management and its critics , 1999 .

[30]  B. Kayis,et al.  The relative importance of tender evaluation and contractor selection criteria , 2010 .

[31]  J. Mazan Les doctrines économiques de Colbert , 1900 .

[32]  John N. Pearson,et al.  Strategically managed buyer–supplier relationships and performance outcomes , 1999 .

[33]  Daniel R. Krause,et al.  Social capital configuration, legal bonds and performance in buyer–supplier relationships , 2011 .

[34]  Mari Juntunen,et al.  Outsourcing strategies of the security sector through acquisition procedures , 2012 .

[35]  F. Çebi,et al.  An integrated approach for supplier selection , 2003 .

[36]  Andreas H. Glas,et al.  Performance‐based logistics: a portfolio for contracting military supply , 2013 .

[37]  M. Holweg,et al.  Lean in healthcare: the unfilled promise? , 2012, Social science & medicine.

[38]  Ewan Ferlie,et al.  New public management : current trends and future prospects , 2001 .

[39]  Keith F. Snider,et al.  Public Procurement and Corporate Social Responsibility: A Comparison of Private Firms and U.S. Defense Contractors , 2012 .

[40]  Steven Tadelis,et al.  Public procurement design: Lessons from the private sector , 2012 .

[41]  M. Naim,et al.  Supply chain flexibility as a determinant of supplier selection , 2010 .

[42]  Gwenaëlle Oruezabala,et al.  The impact of sustainable public procurement on supplier management — The case of French public hospitals , 2012 .

[43]  S. Gounaris,et al.  Approaching Key Account Management from a long-term perspective , 2013 .

[44]  Robert W. Backoff,et al.  Comparing Public and Private Organizations , 1976 .

[45]  Samuel H. Huang,et al.  Comprehensive and configurable metrics for supplier selection , 2007 .

[46]  G. Calzolari,et al.  Procurement contracting strategies , 2006 .

[47]  C. Pardo,et al.  Unpicking the meaning of value in key account management , 2006 .

[48]  J. Bröchner,et al.  Price and Nonprice Criteria for Contractor Selection , 2006 .

[49]  W. Johnston,et al.  WHAT'S NEXT IN KEY ACCOUNT MANAGEMENT RESEARCH? BUILDING THE BRIDGE BETWEEN THE ACADEMIC LITERATURE AND THE PRACTITIONERS' PRIORITIES , 2010 .

[50]  Reza Khorramshahgol,et al.  An Integrated Strategic Approach to supplier Evaluation and Selection , 2012, Int. J. Inf. Technol. Decis. Mak..

[51]  H. Walker,et al.  Drivers and barriers to environmental supply chain management practices: lessons from the public and private sectors , 2008 .

[52]  Pier Angelo Mori,et al.  THE ECONOMICS OF PROCUREMENT CONTRACT AWARDING: PROBLEMS AND SOLUTIONS IN THEORY AND PRACTICE , 2010 .

[53]  Ari Nissinen,et al.  Green award criteria in the most economical advantageous tender in public purchasing , 2006 .

[54]  Byunghak Leem,et al.  The effect of the supply chain social capital , 2013, Ind. Manag. Data Syst..

[55]  Hui Zhang,et al.  International study of technology investment decisions at hospitals , 2014, Ind. Manag. Data Syst..

[56]  S. Ghoshal,et al.  Social Capital, Intellectual Capital, and the Organizational Advantage , 1998 .

[57]  Khandakar Shahadat Supplier choice criteria of executing agencies in developing countries , 2003 .

[58]  R. Levy New Public Management , 2010 .

[59]  Gustavo Piga,et al.  The applied law and economics of public procurement , 2013 .

[60]  Gernod Gruening,et al.  Origin and theoretical basis of new public management , 2001 .

[61]  Gary David Holt,et al.  Lowest price or value? Investigation of UK construction clients' tender selection process , 2000 .

[62]  Michael Ehret,et al.  From relationships to partnerships—new forms of cooperation between buyer and seller , 2006 .

[63]  C. McCrudden Using public procurement to achieve social outcomes , 2004 .

[64]  J. Murray,et al.  Improving purchasing’s contribution ‐ The purchasing strategy of buying council , 2001 .

[65]  Keith F. Snider,et al.  Enhancing Use of Past Performance as a Source Selection Criterion , 2017 .

[66]  L. Hommen,et al.  Public procurement and innovation: towards a taxonomy , 2008 .

[67]  A. Erridge,et al.  Partnerships and public procurement: building social capital through supply relations , 2002 .

[68]  K. Thai PUBLIC PROCUREMENT RE-EXAMINED , 2001 .

[69]  Mika Ojala,et al.  Unit cost behaviour in public sector outsourcing , 2006 .

[70]  H. Walker,et al.  Sustainable procurement in the United Kingdom public sector , 2009 .

[71]  Kim Loader,et al.  Is local authority procurement ‘lean’? An exploration to determine if ‘lean’ can provide a useful explanation of practice , 2010 .

[72]  Christopher S. Tang Perspectives in supply chain risk management , 2006 .

[73]  Jack F. Hooper,et al.  Planning, Programming, Budgeting System. , 1968 .

[74]  Oliver Hart,et al.  Foundations of Incomplete Contracts , 1998 .

[75]  Giancarlo Spagnolo,et al.  Reputation, Competition, and Entry in Procurement , 2012 .

[76]  Nicola Doni,et al.  The Importance of Reputation in Awarding Public Contracts , 2006 .

[77]  Paul R. Schapper,et al.  An analytical framework for the management and reform of public procurement , 2006 .

[78]  Per Vagn Freytag,et al.  Service supply chain management: A survey of lean application in the municipal sector , 2011 .

[79]  H. Walker,et al.  Sustainable procurement in the public sector: an international comparative study , 2011 .

[80]  Alexandra Van den Abbeele,et al.  Public procurement of consulting services: Evidence and comparison with private companies , 2006 .

[81]  Ashutosh Sarkar,et al.  Evaluation of supplier capability and performance: A method for supply base reduction , 2006 .

[82]  C. Edquist,et al.  Public Procurement for Innovation as mission-oriented innovation policy , 2012 .

[83]  Sicco Santema,et al.  The Dutch Construction Industry: An Overview and Its Use of Performance Information , 2010 .

[84]  Hsiang‐Lin Cheng,et al.  Reexamining the direct and interactive effects of governance mechanisms upon buyer–supplier cooperative performance , 2014 .

[85]  Christian Homburg,et al.  A Configurational Perspective on Key Account Management , 2002 .

[86]  Simon Domberger,et al.  Contracting out by the public sector: theory, evidence, prospects , 1997 .

[87]  Annie Pye,et al.  Low carbon procurement: An emerging agenda , 2013 .

[88]  Thomas Y. Choi,et al.  The Supply Base and Its Complexity: Implications For Transaction Costs, Risks, Responsiveness, and Innovation , 2006 .

[89]  C. Gelderman,et al.  Public procurement and EU tendering directives – explaining non‐compliance , 2006 .

[90]  John McIlroy,et al.  Public Procurement and Supply Management Strategies , 2002 .