The Challenges of Public Procurement Reforms

253 Pages·2020·17.559 MB·English

by  Annalisa Castelli (editor), Gustavo Piga (editor), Stéphane Saussier (editor), Tünde Tátrai (editor)

The Challenges of Public

Procurement Reforms
Public procurement affects a substantial share of world trade flows, amounting
to 1000 billion euros per year. In the EU, the public purchase of works, goods
and services has been estimated to account on average for 16 percent of
GDP. The novelty of this book is that it focuses on the new European Union
Directives approved in 2014 by the EU Parliament.
The book consists of original contributions related to four specific themes
of interest to the procurers’ day-t o-d ay role in modern public purchasing
organizations – both economists and lawyers – allowing for relevant exchanges of
views and “real time” interaction. The four sections which characterize the book
are Life-c ycle Costing in Public Procurement; Calculating Costs and Savings of
Public Procurement; Corruption and Probity in Public Procurement and Public
Procurement and International Trade Agreements: CETA, TTIP and beyond.
These themes have been chosen for their current relevance in relation to the
new European Public Procurement Directives and beyond. The original format
features, as is the case with the first three volumes, an introductory exchange
between leading academics and practitioners, from differing disciplines. It offers
a series of sequential interactions between economists, lawyers and technical
experts who supplement one another, so as to enrich the liveliness of the debate
and improve the mutual understanding between the various professions.
This essential guide will be of interest to policymakers, academics, students
and researchers, as well as practitioners working in the field of EU public
procurement.
Annalisa Castelli is Associate Professor of Public Economics at the University
of Cassino and Southern Lazio, Italy.
Gustavo Piga is Professor of Economics at the University of Rome Tor
Vergata, Italy.
Stéphane Saussier is Professor of Economics at Sorbonne Business School,
France.
Tünde Tátrai is Professor of Economics at the Corvinus University of
Budapest, Hungary.
Routledge Studies in Public Economics and Finance

The Challenges of Public Procurement Reforms
Edited by Annalisa Castelli, Gustavo Piga, Stéphane Saussier and
Tünde Tátrai
For more information about this series, please visit:
www.routledge.com/ Routledge- Studies- in- Public- Economics- and- Finance/
book- series/ LICPUBECONFIN
The Challenges of Public

Procurement Reforms
Edited by
Annalisa Castelli, Gustavo Piga,
Stéphane Saussier and Tünde Tátrai
First published 2021
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
52 Vanderbilt Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2021 selection and editorial matter, Annalisa Castelli, Gustavo Piga,
Stéphane Saussier and Tünde Tátrai; individual chapters, the contributors
The right of Annalisa Castelli, Gustavo Piga, Stéphane Saussier and Tünde Tátrai
to be identified as the authors of the editorial material, and of the authors
for their individual chapters, has been asserted in accordance with sections
77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised
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British Library Cataloguing-i n- Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-i n- Publication Data
Names: Interdisciplinary Symposium on Public Procurement
(4th : 2018 : Paris, France) | Castelli, Annalisa, editor.
Title: The challenges of public procurement reforms /
edited by Annalisa Castelli [and three others].
Description: Abingdon, Oxon; New York, NY: Routledge, 2020. |
Series: Routledge studies in public economics and finance |
“4th Interdisciplinary Symposium on Public Procurement
[held in Paris in 2018]”– Introduction. |
Includes bibliographical references and index.
Identifiers: LCCN 2020014523 (print) | LCCN 2020014524 (ebook)
Subjects: LCSH: Government purchasing–Law and legislation–European
Union countries–Congresses. | Government purchasing–Economic aspects–European
Union countries–Congresses. | Law reform–European Union countries–Congresses.
Classification: LCC KJE5632.A8 I58 2018 (print) |
LCC KJE5632.A8 (ebook) | DDC 352.5/323672114–dc23
LC record available at https://lccn.loc.gov/2020014523
LC ebook record available at https://lccn.loc.gov/2020014524
ISBN: 978- 0- 367- 90267- 4 (hbk)
ISBN: 978- 1- 003- 02347- 0 (ebk)
Typeset in Times New Roman
by Newgen Publishing UK
Contents

List of figures vii

List of tables ix

List of contributors x

Preface xiii

Foreword: The OECD’s work on Public Procurement: 
Reshaping the global agenda by Paulo Magina xv

PART I
Life- cycle costing in public procurement 1

1 Life-c ycle costing in public procurement:
Colloquium 3

STÉPHANE SAUSSIER AND CHRISTOPHER H. BOVIS
2 Life-c ycle thinking in EU public procurement:
Moving beyond a simple ‘buzz word’ 14

DACIAN C. DRAGOS AND BOGDANA NEAMTU
3 LCC and GPP: Competing or complementary
approaches? 50

ÁUREA ADELL QUEROL, BETTINA SCHAEFER AND
JOSEP ESQUERRÀ I ROIG
PART II
Calculating costs and savings of public procurement 67

4 Calculating the costs and savings of public
procurement: Colloquium 69

GIANCARLO SPAGNOLO AND ANDREAS H. GLAS
vi Contents
5 Challenges and methods for cost analysis in public
procurement: Lessons from the procurement of public
transportation services in the Stockholm region 83

ANDRÉ ÅSLUNDH
6 Reference prices and Italian spending review 95

FABRIZIO SBICCA
PART III
Corruption and probity in public procurement 111

7 Corruption and probity in public procurement:
Colloquium 113

TÜNDE TÁTRAI AND FRANCESCO DECAROLIS
8 Challenges in public procurement: Corruption and
probity in public procurement 129

MARION CHABROST
9 Municipal procurement of social care: opportunistic
behavior opportunities 148

NIELS UENK, JAN TELGEN AND MADELON WIND
PART IV
Public procurement and international trade agreements:
CETA, TTIP and beyond 165

10 Public procurement and international trade agreements –
CETA, TTIP and beyond: Colloquium 167

CHRISTOPHER R. YUKINS AND MIHÁLY FAZEKAS
11 Growing significance of regional trade agreements in
opening public procurement 184

JEAN HEILMAN GRIER
12 Transatlantic trade and public procurement
openness: Going beyond the tip of the iceberg 219

LUCIAN CERNAT AND ZORNITSA KUTLINA- DIMITROVA
Index 229
Figures

2.1 Sustainability framework 15
3.1 Total cost of ownership during 60 years for 11 rail tractor units 54
3.2 LCC comparison of a diesel and an electric small car over
8 years 55
4.1 Framework for the debate of savings in public procurement 74
5.1 Number of procurements published in TED 2015 relative
to the population (in millions) for EU countries with a
population larger than two million inhabitants 84
5.2 Costs 2017 in the Stockholm County for different types of
public transportation 85
5.3 Share of passengers stating in onboard surveys that they are
satisfied with the transport service provided 85
5.4 Population of the Stockholm County (•) and total costs (×)
for transport operators providing transport services for the
Stockholm PTA 86
5.5 Key cost categories for a commuter train transport operator
and the schematic share of cost per category 89
5.6 Number of drivers needed to perform different tasks during
a weekday and the number of cumulative work shifts started.
Based on simulations in a traffic scheduling planning system 90
6.1 Excess expenditure due to the price component – estimates
for the sanitary cleaning service 103
6.2 Excess expenditure due to the price component and linear
cuts – estimates for the sanitary cleaning service 105
6.3 Price overspending ranking – sanitary cleaning service 107
6.4 Supply side – companies’ market shares 108
6.5 Price overspending and companies’ market shares 108
8.1 Purposes of bribes 130
8.2 Share of adapted procedures for contract below the EU
threshold in French municipalities (2006– 2015) 130
8.3 Distribution of cases of investigation in French
municipalities (2006– 2015) 140
viii List of figures
8.4 Distribution of the size of investigated municipalities
(2006– 2015) 140
8.5 Chronology of legal proceedings in France 141
8.6 Press Freedom and Corruption Perception Index across
G20 countries, 2016 143
8.7 Level of disclosure and public availability of private interests,
2014 144
8.8 Public availability of procurement information at central
level government, 2010 144
10.1 Three “layers” of trade agreements regarding procurements 175
10.2 Share of foreign registered suppliers by Member States and
EU institutions residing in them, Member States with EU
institutions awarding at least 50 contracts in 2009– 2014,
TED, goods, works and non- consulting services 176
12.1 Newly introduced public procurement measures by
government level, count of measures, 2009– 2017 224
12.2 Top 10 most protectionist countries in public procurement,
count of ‘red’ measures, 2009– 2017 225
12.3 Top 20 most affected countries by measures that are almost
certainly discriminatory (‘red’), count of measures, 2009– 2014 226
Tables

3.1 Procedure results for the financial score of received offers 56
3.2 Existing LCC tool for public procurement in the European
Union 58
6.1 Some reference prices for drugs 100
6.2 Some reference prices for medical devices 101
8.1 EU thresholds for public contracts from 2006 to 2015 133
8.2 Decision matrix to support the choice of the procurement
procedure 134
8.3 Main characteristics of the adapted and open auctions award
procedures 137