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The awarding of public works in Italy: an analysis of the mechanisms for the selection of contractors

Author

Listed:
  • Francesco Decarolis

    (University of Wisconsin - Madison)

  • Cristina Giorgiantonio

    (Bank of Italy)

  • Valentina Giovanniello

    (Tribunale di Roma)

Abstract

Despite successive reforms, public procurement in Italy is still highly fragmented and vulnerable to collusion, corruption and ex-post renegotiation. Other defects are found in the planning stages of the works. These problems are due in part to the regulations on the awarding of public works contracts, which do not guarantee the correct functioning of the selection mechanisms. Indications from the economic literature and international comparisons suggest a series of possible improvements: i) the elimination of automatic exclusion mechanisms for anomalous tenders (which would reduce the risk of collusion between bidders); ii) the centralization of assessments of anomalous offers under the responsibility of larger adjudicating authorities, with an increase in the surety guarantees provided by the winner, to reduce the risk of subsequent renegotiations; iii) stronger anti-corruption measures; iv) more standardized planning and, for the more complex auctions, competitive dialogue.

Suggested Citation

  • Francesco Decarolis & Cristina Giorgiantonio & Valentina Giovanniello, 2010. "The awarding of public works in Italy: an analysis of the mechanisms for the selection of contractors," Questioni di Economia e Finanza (Occasional Papers) 83, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_83_10
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    Cited by:

    1. Francesco Decarolis & Cristina Giorgiantonio, 2020. "Corruption red flags in public procurement: new evidence from Italian calls for tenders," Questioni di Economia e Finanza (Occasional Papers) 544, Bank of Italy, Economic Research and International Relations Area.
    2. Giuseppe F Gori & Patrizia Lattarulo & Marco Mariani, 2017. "Understanding the procurement performance of local governments: A duration analysis of public works," Environment and Planning C, , vol. 35(5), pages 809-827, August.
    3. Decarolis, Francesco & Giorgiantonio, Cristina, 2015. "Local public procurement regulations: The case of Italy," International Review of Law and Economics, Elsevier, vol. 43(C), pages 209-226.
    4. Bucciol, Alessandro & Chillemi, Ottorino & Palazzi, Giacomo, 2013. "Cost overrun and auction format in small size public works," European Journal of Political Economy, Elsevier, vol. 30(C), pages 35-42.
    5. Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2012. "The Macroeconomic Impact of Infrastructures: A Literature Review and Empirical Analysis on the Case of Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.

    More about this item

    Keywords

    infrastructure; auctions; regulation;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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