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Repeated selection of supplier, factors and results: the Czech Republic

Publication at Faculty of Social Sciences |
2019

Abstract

The paper aims to deal with the analysis of the factor leading to the repeated selection of the specific supplier and the effect of this recurrent selection on overpricing of public contracts. A mix of quantitative and qualitative methods is used to achieve this goal.

To analyze the chances of obtaining repeated contracts, the logistic regression method is used. To analyze the factor of overpriced contracts, the classic ordinary least squares regression model is used.

The focus group method is then used to explain the factors acting on the part of the contracting authorities. The results show that the prior procurement of a given contracting authority, or work for the public sector in general, has a statistically significant effect on the conclusion of contracts.

The use of less-transparent forms of input has a strong impact. The non-transparent selection of suppliers rather than repetition of contracts generally results in the over-pricing of contracts.

The IT sector is an exception.