Procurement at Local Government Level – Issues and Controversies

Local government, as administrative units, performs a broad range of services that require to establish relations with outside partners, including those belonging to the private sector. Public procurement, due to the size of the involved financial flows, is government activity especially exposed to...

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Main Authors: Marija Kaštelan Mrak, Nenad Vretenar, Jelena Jardas Antonić
Format: Article
Language:English
Published: University of Ljubljana Press (Založba Univerze v Ljubljani) 2016-11-01
Series:Central European Public Administration Review
Subjects:
Online Access:https://journals.uni-lj.si/CEPAR/article/view/20460
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author Marija Kaštelan Mrak
Nenad Vretenar
Jelena Jardas Antonić
author_facet Marija Kaštelan Mrak
Nenad Vretenar
Jelena Jardas Antonić
author_sort Marija Kaštelan Mrak
collection DOAJ
description Local government, as administrative units, performs a broad range of services that require to establish relations with outside partners, including those belonging to the private sector. Public procurement, due to the size of the involved financial flows, is government activity especially exposed to inefficiencies, corruption and dishonesty. There is an everlasting discussion on the ideal size and the range of services to be kept ‘in-house’ of local government units (LGUs).Transaction Costs Economics (TCE) represents a theoretical paradigm specially designed to interpret the issue of efficiency in inter-institutional relations. However, even though TCE might be envisaged as a tool for building better systems and institutions, practical experience suggests that efficient organization of complex multi-institutional systems is still a goal to be met. Therefore, public procurement procedures at LGU level are suitable to analyze the transaction costs. In an attempt to determine the main organizational features of the existing scope of institutions/entities involved in delivering services to citizens, we provided an overview of the complexity of inter-organizational relations at LGU level. In this paper, we present results of an empirical research of public procurement procedures from the perspective of LGUs in Croatia. Picking up on questionnaire responses from 200 LGUs that reported having held over 350 cases of providing services through contract agreements with ‘independent’ service providers, we formed an opinion of what could be the consequences of developing more structured public procurement procedures.
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institution Kabale University
issn 2591-2240
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language English
publishDate 2016-11-01
publisher University of Ljubljana Press (Založba Univerze v Ljubljani)
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spelling doaj-art-63ae00aedf3b454081127b0eff66fc8f2025-01-22T10:51:52ZengUniversity of Ljubljana Press (Založba Univerze v Ljubljani)Central European Public Administration Review2591-22402591-22592016-11-0114410.17573/ipar.2016.4.03Procurement at Local Government Level – Issues and ControversiesMarija Kaštelan Mrak0Nenad Vretenar1Jelena Jardas Antonić2University of Rijeka, Faculty of Economics, RijekaUniversity of Rijeka, Faculty of Economics, RijekaUniversity of Rijeka, Faculty of Economics, RijekaLocal government, as administrative units, performs a broad range of services that require to establish relations with outside partners, including those belonging to the private sector. Public procurement, due to the size of the involved financial flows, is government activity especially exposed to inefficiencies, corruption and dishonesty. There is an everlasting discussion on the ideal size and the range of services to be kept ‘in-house’ of local government units (LGUs).Transaction Costs Economics (TCE) represents a theoretical paradigm specially designed to interpret the issue of efficiency in inter-institutional relations. However, even though TCE might be envisaged as a tool for building better systems and institutions, practical experience suggests that efficient organization of complex multi-institutional systems is still a goal to be met. Therefore, public procurement procedures at LGU level are suitable to analyze the transaction costs. In an attempt to determine the main organizational features of the existing scope of institutions/entities involved in delivering services to citizens, we provided an overview of the complexity of inter-organizational relations at LGU level. In this paper, we present results of an empirical research of public procurement procedures from the perspective of LGUs in Croatia. Picking up on questionnaire responses from 200 LGUs that reported having held over 350 cases of providing services through contract agreements with ‘independent’ service providers, we formed an opinion of what could be the consequences of developing more structured public procurement procedures.https://journals.uni-lj.si/CEPAR/article/view/20460economic efficiencylocal government unitspublic procurementpublic administrationtransaction costs
spellingShingle Marija Kaštelan Mrak
Nenad Vretenar
Jelena Jardas Antonić
Procurement at Local Government Level – Issues and Controversies
Central European Public Administration Review
economic efficiency
local government units
public procurement
public administration
transaction costs
title Procurement at Local Government Level – Issues and Controversies
title_full Procurement at Local Government Level – Issues and Controversies
title_fullStr Procurement at Local Government Level – Issues and Controversies
title_full_unstemmed Procurement at Local Government Level – Issues and Controversies
title_short Procurement at Local Government Level – Issues and Controversies
title_sort procurement at local government level issues and controversies
topic economic efficiency
local government units
public procurement
public administration
transaction costs
url https://journals.uni-lj.si/CEPAR/article/view/20460
work_keys_str_mv AT marijakastelanmrak procurementatlocalgovernmentlevelissuesandcontroversies
AT nenadvretenar procurementatlocalgovernmentlevelissuesandcontroversies
AT jelenajardasantonic procurementatlocalgovernmentlevelissuesandcontroversies