Price Dumping in the Procurement Process and its Impact on the Outcome of Procurement Activities and the Strategy of Participants in the Procurement Proceedings

Price dumping in contract system or abnormally low tenders are considered to be the problem of public procurement due to the growing risks of bidder non-compliance with the contract terms. Nevertheless, experts and analysts have not yet reached agreement on the strategy for early and proper detection the cases in government and municipal procurement proceedings when the dumping is the true reason of procurement process ineffectiveness. This study pertains to a newly evolving branch of researches originating in the domain of public procurement. Its aim is the identifying the possible adverse impact of price dumping on the outcomes of procurement activities and the strategies of participants in the procurement proceedings. To achieve the target the sample of government and municipal contracts was determined and the detailed data analysis was carried out. Based on all significant research results recommendations were made to law makers, public agencies and procurement experts to avoid the negative consequences of low bids.