We evaluate the cost-effectiveness of centralized public procurement (CPP) in Finland using observational data and interviews. Standardized prices for CPP are slightly lower than in decentralized procurement, but the differences are relatively small and rarely statistically significant. CPP has more potential competition, but this is not reflected in the number of bids received. However, the study presents individual examples where CPP is clearly associated with lower prices, and increased competition or reduced favoritism. The results are in line with the previous literature: CPP can result in savings, but the benefits depend on the type of product. Due to data limitations, the statistical power of the analysis is weak. Moreover, comparable prices are rarely observed, and actual realized purchase prices are not observed at all. One of the key results of the study is the documentation of data deficiencies. Evaluating the efficiency and problems of CPP and public procurement is impossible without better data. The availability and utilization of data could be improved at relatively small costs. Based on interviews, CPP can save costs, but the benefits vary depending on the situation and procurement mechanism. Due to the small sample, the different procurement mechanisms cannot be ranked based on the interviews and on the basis of the procurement process costs they generate.
|Bidragets översatta titel||Cost-effectiveness of centralized procurement |
|ISBN (elektroniskt)||978-952-383-444-6 |
|Status||Publicerad - 2023|
|MoE-publikationstyp||D4 Publicerad utvecklings- eller forskningsrapport eller -utredning|
|Namn||Valtioneuvoston selvitys- ja tutkimustoiminnan julkaisusarja |
- AoS: Konkurrensanalys och servicestrategi - Kvantitativt konsumentbeteende och konkurrensekonomi