Joint public procurement

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Joint public procurement Tünde Tátrai1

© ERA 2015

Abstract Joint public procurement is an opportunity that first appeared with the new European Public Procurement Directives. The significance of joint public procurement should not be exaggerated, but it is important to explore its advantages, its possible applications and its occasional disadvantages. Joint public procurement can not be managed independently from the decisions or the internal organisational matters of the contracting authorities or entities. There are plenty of potential research questions that widen the scope of understanding of the joint procurement framework system. A better understanding of everyday practice could make it clear that joint implementation of projects does not directly yield cheaper and more efficient public procurement. Keywords Joint procurement · Collaborative purchasing · Dependence asymmetry

1 Literature review The literature on ‘joint public procurement’ is rather slender. The reason is that relatively few analyses have been written using this term. Instead, procurement-focused articles are found in which the terms ‘collaborative procurement’, ‘buyer group’ and ‘cooperative purchasing’ predominate. The majority of the articles study joint procurement solutions adopted by contracting authorities and entities on their own initiative.

B Associate professor T. Tátrai

[email protected]

1

Department of the Institute of Business Economics, Corvinus University of Budapest, District no. 9, F˝ovám tér 8, 1093 Budapest, Hungary

T. Tátrai

Eriksson et al. (2010) emphasise that cooperative procurement procedures “have positive influence on the performance”.1 Cooperative procurement means the joint development of specifications and selection criteria and the evaluation of soft parameters together. The basic idea of Eriksson et al. (2010) is that the relationship between the partners in a cooperative procurement is moderated and mediated by a collaborative approach, in which the partners trust each other and are committed to common success. Blair et al. (2014) mainly deal with “collaborative mechanisms” and “interlocal cooperation” of local governments, like agreements, contracts, associations, consortiums and joint ventures. Interestingly, they highlight the significance institutional context in which the collaboration is developed. Among the success factors they underline the importance of management to understand the collaborative mechanisms that “foster and sustain intergovernmental cooperation.”2 When distinguishing mechanisms, they attribute equally important role to informal solutions as to formal ones. According to the authors, there are certain other issues that require consideration, for example “how do institutional context and organisational culture impact the use of collaborative mechanisms”?3 Other researchers call attention to countless other aspects that may contribute to the success of joint procurement. One of the most interesting examples is given by Erridge (2000): with professional training, the col