Outsourcing public procurement by Czech municipalities and its effectiveness
DOI:
https://doi.org/10.61357/sehs.v11i1.45Keywords:
outsourcing, public procurement, municipalities, Czech RepublicAbstract
One of the main reasons for the decision to outsource is the limited internal capacity to produce a service or to carry out a process in-house. Taking this into account, we may expect that under the conditions of the very fragmented territorial structure of the Czech Republic, outsourcing of public procurement could be a very frequent solution. The goal of this article was to assess the scale and reasons for outsourcing of public procurement by Czech municipalities and to evaluate the results of outsourcing. The evaluation of results used “security” as a criterion – we have analysed whether outsourcing decreases the risk of an unsuccessful review process. The results clearly confirm the assumption that Czech municipalities frequently outsource the public procurement process. Our results also deliver very important original findings. We have proved that municipalities do not have effective capacity to select reliable firms, deliver a high quality procurement process and defend results in case of a review processes. Experts provided two explanations of this situation – either municipalities select outsourced firms only using the lowest price criterion or municipalities have limited capacity to select the best firm. The second documented issue is the fact that some municipalities may use outsourcing with the aim to manipulate procurement results.
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