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An Empirical Analysis of the Effectiveness of the Public Procurement Orders Placement System (for different product groups)

Priority areas of development: economics
2012

Коды по классификатору Elibrary:
06.00.00 Экономика. Экономические науки
06.56.00 Общественно-экономическая структура
06.56.61 Кооперативный сектор. Кооперативные предприятия
The subject of the research is the public procurement system in Russia, its mechanisms and participants.

The research aims at investigating the effectiveness of different public order placement procedures using concrete examples of different types of goods (search goods, experience goods and credence goods).

Five examples of goods and services classified in different type groups (search, experience and credence goods) were chosen for empirical analysis of the effectiveness of the public procurement system in Russia. The group of search goods is represented by sugar, paper and motor gasoline. Bodyguard services were chosen as an example of experience goods and tomographic scanners as credence goods.

In the course of the project the following official databases were analyzed:
  1. Public Orders Register administered by the Federal Treasury office (reestrgk.roskazna.ru)
  2. Unified State and Municipal Register (zakupki.gov.ru – the official website for public order information placement)
  3. Analytical section of the portal zakupki.gov.ru (restricted access)

The databases contain information on the stages of public procurement order placement and further contract administration. The methodology of information retrieval from databases specified was developed for every stage of the public procurement order execution process.

In order to analyze the development process of the public procurement system in Russia in general, its participants behavior and in case of goods and services classification, we applied the methodology of institutional economic theory. Besides, the research relies on contract theory concepts. In terms of data accumulation, processing and analysis concept the research is based on methods developed and tested in previous projects on public procurement system development carried out at the Institute for Industrial and Market Studies (IIMS), and applied for the first time in Russia. We conducted an empirical analysis of the characteristics of public orders and contracts using standard econometric methods.

We have carried out market trends research, collection of empirical data on public procurement orders and contracts, its processing and basic analysis for each type of goods chosen (sugar, paper, motor gasoline, bodyguard services and tomographic scanners). As a result we have developed two databases containing complementary datasets on public orders and contracts and covering different time periods.

In the framework of the project we have also conducted detailed analysis of public procurement process on two types of goods: sugar as an example of a simple homogeneous product and tomographic scanners as an example of complex high-tech equipment. The investigation of public procurement mechanisms and procedures for goods with diverse characteristics allowed us to develop recommendations for further public procurement system effectiveness enhancement both for groups of simple homogeneous goods and for complex highly diversified products.

As a result of the research we have identified the special features of public procurement procedures for inspected groups of products, process participant characteristics, pricing mechanisms and its impacting factors.

We have also carried out the assessment of the effectiveness of public procurement procedures and mechanisms on both stages of order placement and contract administration. Moreover, we have identified factors impacting the effectiveness indicators (using sugar contracts as an example).

Within the research project we have studied the problems of the public procurement system in Russia, its procedures and mechanisms arising for simple homogeneous and complex highly differentiated groups of products. The investigation resulted in the development of recommendations for enhancement of public procurement system procedures and mechanism effectiveness for both groups of goods.

The project contributes to the field of empirical studies on the effectiveness of the public procurement system and reveals fields of further enhancement of public procurement order placement procedures and contract administration mechanisms.

The results of the research may be implemented for the development and further improvement of the public procurement system in Russia.

Publications:

Yakovlev A. A., Demidova O. A., Balaeva O. N.. Empirical analysis of suppliers’ non-performance risks in execution of public procurement contracts in Russia. , in: Charting a Course in Public Procurement Innovation and Knowledge Sharing / Науч. ред.: G. L. Albano, K. F. Snider, K. V. Thai. Boca Raton : PrAcademics Pre, 2013. Ch. 10. P. 253-287.
Yakovlev A. A., Demidova O. A.. Access of firms to public procurement in Russia in the 2000s: before and after radical reform of regulation // International Journal of Economic Policy in Emerging Economies. 2012. Vol. 5. No. 2. P. 140-157.
Яковлев А. А. Система госзакупок в России: на пороге третьей реформы // Общественные науки и современность. 2012. № 5. С. 54-70.
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