Competitive Tendering: Lessons from the Public Sector

Purpose – The purpose of this research is to determine the perceptions of a public sector agency’s representatives who are involved in the selection of procurement methods about the benefits and barriers of implementing early contractor involvement (ECI). There have been widespread calls for the public sector to use of non-traditional delivery methods so as to obtain better “value for money”. ECI is one form of delivery approach that has begun to attract the attention of many Australian State Governments, as it allows a contractor to proactively participate in design development, risk management and the construction programming processes. Design and construction processes can also be integrated which, therefore, overcome the impediments and barriers that have conventionally existed between designers and contractor. Within Western Australia, the use of ECI has been limited and therefore perceptions about its potential application are obtained. Design/methodology/approach – Using questionnaire surveys and follow-up semi-structured interviews, the research sought to determine the perceptions of a public sector agency’s representatives who are involved in the selection of procurement methods about the benefits and barriers of implementing ECI. Findings – It is revealed that a significant proportion of contractors did not have the capability and experience to be involved within an ECI approach. Their preference was the use of a traditional lump-sum method. Where there was limited scope for using competitive tendering, particularly on large complex projects, then ECI could be a preferred option for future projects. Originality/value – To date, there has been limited empirical research that examined the public sectors views on the use of ECI despite the calls for the greater use of integrated procurement methods of this nature. The research indicates that there is a need to develop strategies to better educate public sector clients, designers and contractors about how ECI can contribute to the development of innovative solutions and better value for money.

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Supplier satisfaction with public sector competitive tendering processes

Journal of Public Procurement ◽

10.1108/jopp-12-2020-0088 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Stephen Kelly ◽

Donna Marshall ◽

Helen Walker ◽

John Israilidis

Keyword(s):

Public Sector ◽

Poor Quality ◽

Content Type ◽

The Public ◽

Competitive Tendering ◽

Empirically Supported ◽

Quality Dimensions ◽

Service Quality Dimensions ◽

The Uk ◽

Satisfaction Model

Purpose This paper aims to explore the supplier perspective on competitive tendering processes and build on an increasing and developing interest in supplier satisfaction with public sector procurement activities. Design/methodology/approach Qualitative data was collected from 20 interviews with a variety of suppliers to the UK public sector, which was then analysed using Nvivo and a series of empirically supported propositions developed. Findings The findings are combined into an integrated supplier satisfaction model, which explains how a multi-layered set of expectations (past and ideal) and quality dimensions (fairness, ambiguity, unnecessary information, tender focus, relationship irrelevance, unresponsiveness, outcome success) lead to dissatisfaction. This paper also establishes the implications of these judgments (non-response, poor quality and relationship impact) and that they are impacted by comparison to alternatives. Practical implications Supplier dissatisfaction can have serious ramifications for public sector buying organisations by reducing the pool of applicants, creating relationship barriers and a disconnect between the tender and the eventual services provided. This paper gives empirically derived advice to managers and policymakers on how to avoid these issues. Social implications Ensuring that as wide a pool of possible suppliers can respond to tender requests, means that the services that are provided by the public sector can make the most effective and efficient use of available resources. In addition, small to medium-sized enterprises may be encouraged to overcome their feelings of dissatisfaction and respond more frequently and readily to tender requests. Originality/value This paper contributes to the field of public sector procurement and in particular that which looks at increasing supplier satisfaction, by developing a supplier satisfaction model based on supplier generated data, which uses disconfirmation theory to explain the dynamics of how individuals make judgments by comparing perceptions of performance with a multi-layered set of expectations. This paper identifies service quality dimensions that influence satisfaction judgments and the implications of these judgments.

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Contractor selection: qualification and bid evaluation

Canadian Journal of Civil Engineering ◽

10.1139/l96-012 ◽

1996 ◽

Vol 23 (1) ◽

pp. 117-123 ◽

Cited By ~ 10

Author(s):

Jeff H. Rankin ◽

Stephen L. Champion ◽

Lloyd M. Waugh

Keyword(s):

Public Sector ◽

Evaluation System ◽

Selection Process ◽

Case Law ◽

Contractor Selection ◽

The Public ◽

Competitive Tendering ◽

Legal Implications ◽

Considerable Controversy ◽

Bid Evaluation

Historically the selection of contractors in North America was almost exclusively based on the lowest tendered price. Owners utilized competitive tendering for its simplicity and fairness in the award process. More recently, owners have reconsidered the use of low price as the basis for selecting contractors and therefore have attempted to modify the traditional low bid system with qualification and evaluation clauses. Qualification and evaluation clauses have caused considerable controversy in the public sector, where contractors are concerned about the legitimacy of tendering procedures when public funds are used. Although contractors agree that the system needs improvement, there are conflicting views on what should be done. This paper provides a summary of traditional tendering procedures and illustrates two possible modifications to the contractor selection process. The intended audience is practicing professionals, particularly those in the public sector where the objectivity of the tendering process is under such scrutiny. Evaluation is selected as the direction with the most potential for improvements. The evaluation option is analyzed by examining its legal implications through a discussion of recent case law. Finally, recommendations for implementing an evaluation system are discussed to address the issues identified through the legal discussion and from the opposing views in the construction industry. Key words: construction, contract law, competitive bidding, contractor qualification, bid evaluation.

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The Growth of Private Practice in Occupational Therapy in Great Britain

British Journal of Occupational Therapy ◽

10.1177/030802269205500412 ◽

1992 ◽

Vol 55 (4) ◽

pp. 157-161 ◽

Cited By ~ 6

Author(s):

Anne Cossar

Keyword(s):

Great Britain ◽

Cost Effectiveness ◽

Public Sector ◽

Occupational Therapy ◽

Private Sector ◽

Private Practice ◽

Occupational Therapists ◽

The Public ◽

Competitive Tendering ◽

Therapy Services

By means of a questionnaire issued to the 65 therapists registered on the COT Private Practice Directory 1989, a study gathered demographic details and information regarding the growth of private practice, diversity of practice and referral sources. It appeared that trends emerging amongst occupational therapists in the private sector might be pre-empting trends in the occupational therapy profession in general. With decreasing resources and the introduction of competitive tendering in the public sector, more therapists might have to re-examine their services in terms of cost-effectiveness. It seemed that colleagues in the private sector had already rationalised their services in order to compete in the marketplace. Those skills that were highly visible, in the physical, domiciliary and litigation areas of work, predominated. The findings have implications for those occupational therapy services presently without proven effectiveness which require urgent research to prevent their further decline.

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The limits of contractual order in public sector transacting

Legal Studies ◽

10.1111/j.1748-121x.1994.tb00509.x ◽

1994 ◽

Vol 14 (3) ◽

pp. 364-392 ◽

Cited By ~ 9

Author(s):

Peter Vincent-Jones

Keyword(s):

Public Sector ◽

Private Sector ◽

Common Language ◽

Internal Markets ◽

Financial Responsibility ◽

The Public ◽

Competitive Tendering ◽

Business Units ◽

Role Of The State

Contract is playing an increasingly important part in the restructuring of the public sector in Britain in the 1990s. The direct providing role of the state is being reduced through the ‘contracting out’ of ancillary and core services in the NHS, central and local government, whilst the policy aim of increasing the efficiency of public sector management involves contract in the operation of internal markets, the creation of specialist agencies with clearly defined functions and responsibilities, the devolution of financial responsibility to budget-holding business units operating in internal trading relationships, and the exposure of internal workforces to private sector competition through compulsory competitive tendering (CCT). However, the widespread adoption of a common ‘language of contract’ to describe processes occurring in these different contexts disguises a variety of meanings and functions.

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