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Bypassing public procurement regulation: A study of rationality in local decisionmaking

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  • Lisa Hansson
  • Johan Holmgren

Abstract

Using private contractors through procurement is common in most public sector areas. Despite the benefits of procurement, officials are sometimes tempted to circumvent procurement regulations. The aim of this article is to examine the strategies used by local governmental decisionmakers to bypass procurement regulations and to analyze the rationality underlying these officials' actions. Interviews, court documents, municipal documents, and newspaper articles describing the actions of Swedish municipal officials concerning special transport service (STS) procurements were collected and analyzed. In a case in which rural municipalities lost regular taxi services after STS procurement, we demonstrate how decisions were driven by pressure from the public and local interest groups, making municipal officials deviate from procurement regulations in striving to secure the existence of regular taxi services. One outcome was that local businesses were given preferential treatment, violating regulations and reducing economic efficiency.

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  • Lisa Hansson & Johan Holmgren, 2011. "Bypassing public procurement regulation: A study of rationality in local decisionmaking," Regulation & Governance, John Wiley & Sons, vol. 5(3), pages 368-385, September.
    • Handle: RePEc:wly:reggov:v:5:y:2011:i:3:p:368-385
    DOI: 10.1111/j.1748-5991.2011.01110.x
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    References listed on IDEAS

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    1. McAfee, R. Preston & McMillan, John, 1989. "Government procurement and international trade," Journal of International Economics, Elsevier, vol. 26(3-4), pages 291-308, May.
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    Cited by:

    1. John R Bryson & Chloe Billing & Mark Tewdwr-Jones, 2023. "Urban infrastructure patching: Citizen-led solutions to infrastructure ruptures," Urban Studies, Urban Studies Journal Limited, vol. 60(10), pages 1932-1948, August.

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