Public Sector Procurement: Lump-Sum payments or Optimal Contracts?

2002 ◽  
Author(s):  
Paul L. Levine ◽  
Neil Rickman
1987 ◽  
Vol 15 (3) ◽  
pp. 322-338 ◽  
Author(s):  
Daniel P. Schwallie

The impact of intergovernmental grants on the expenditures of recipients has been the focus of considerable investigation, while their impact on the relative sizes of the public and private sectors has been given little more than brief discussion. No well-defined structure has emerged to explain how a system of intergovernmental grants might affect public sector size. This article is a first attempt at such a structure. It investigates the impact of intergovernmental grants by comparing public sector size in the presence of conditional lump-sum grants to public sector size in their absence for given grantor and recipient preferences on the allocation of financial resources between the private and public sectors. Implications are drawn from the model and comments are made pertaining to the empirical investigations of grant effects on recipient governments spending.


Facilities ◽  
2014 ◽  
Vol 32 (9/10) ◽  
pp. 460-471 ◽  
Author(s):  
Peter E.D. Love ◽  
Damien O’Donoghue ◽  
Peter R. Davis ◽  
Jim Smith

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.


2020 ◽  
Vol 20 (3) ◽  
pp. 70-83
Author(s):  
Roman V. Erzhenin

The article studies the correctness of setting goals and establishing norms in the regional segment of social support for the population and some of the consequences of this issue. As an example, the author examines the decrees of the Governor of the Irkutsk Region on social support for public sector employees issued in the period 2017-2019. An analysis of the provisions set forth in the decrees and the approved procedures for submission of lump sum payments highlights the non-traditional methods of organizing transfers of budget funds to employees of the state and municipal organization in the region. In addition to giving budget workers the right to receive a lump sum payment on professional holidays, the decrees of the Governor of the Irkutsk Region in violation of federal law exempted these payments in the amount of RUB 1.5 billion from taxation. According to the author, the motive to avoid generally accepted mechanisms for fulfilling budget expenditure commitments could be a desire to receive unreasonable tax benefits for the regional budget by reducing payments to budgets of other levels and extra-budgetary funds. The obtained results of the research can be used to develop the guidelines for limiting the regional rule-making in the field of social support based on subjective understanding of unreasonable norms-goals.


2019 ◽  
Vol 26 (6) ◽  
pp. 1004-1023
Author(s):  
Amira Shalaby ◽  
Amr Hassanein

Purpose Public private partnership contracts tend to have longer contract durations compared to other conventional procurement methods. A contract renegotiation becomes inevitable in most of the cases. The renegotiation process usually develops a number of scenarios in order to regain the contract equilibrium. The purpose of this paper is to facilitate the renegotiation process by offering an automated system to select the optimum renegotiation scenario that preserves the rights and the interests of the project stakeholders. Design/methodology/approach The common renegotiation scenarios used are: increasing the service charges, increasing the concession period or paying a lump sum amount to the party of concern in order to maintain a fixed rate of return and keep the return on equity constant. In this paper, a method of selecting the optimum scenario among the different scenarios is proposed. This is done using a weighted sum model to calculate the weights and ranks of a number of factors influencing the stakeholders’ decisions. A DSS is developed with the aid of Microsoft Excel, VBA programming language, and the Precision Tree 5.5 for Excel add-in. Findings The renegotiation process has been facilitated by using an automated system that maximizes the benefits of both the public sector and the private sector. The optimum renegotiation scenario has been selected for the case of the model. Originality/value The developed framework is of great benefit to project stakeholders, including the private sector, the public sector and the users of the service. It saves time and money invested in lengthy negotiations, and it enforces transparency and mutual trust between the different parties by providing a tool that significantly minimizes conflicts during the renegotiation process and defines clear steps to be followed in order to reach an agreement that will maximize the benefits for both the private and the public sectors.


2013 ◽  
Author(s):  
H. Westerlund ◽  
J. Ferrie ◽  
J. Hagberg ◽  
K. Jeding ◽  
G. Oxenstierna ◽  
...  
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