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Local public procurement: how to deal with a creative bidder? A case study from the Netherlands

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  • van der Hoek, M. Peter

Abstract

This paper presents an analysis of the procurement of transportation services for the disabled by the town of Ridderkerk. The method used consisted of a study of the town’s files and interviews with 11 persons involved. The tender specifications were peculiar in that they required bidders to submit a schedule with prices per ride for seven classes ranging from 100,000 to over 600,000, whereas the real number of rides amounted to 270,000. One of the bidders quoted high prices for the first classes and very low prices for the last classes. On the basis of all seven classes, he quoted the lowest costs and won the contract. However, on the basis of the real number of rides he was the second most expensive bidder.

Suggested Citation

  • van der Hoek, M. Peter, 2008. "Local public procurement: how to deal with a creative bidder? A case study from the Netherlands," MPRA Paper 24280, University Library of Munich, Germany, revised 27 Oct 2009.
    • Handle: RePEc:pra:mprapa:24280
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    References listed on IDEAS

    as
    1. Gunnar ALEXANDERSSON & Staffan HULTÉN, 2007. "High And Low Bids In Tenders: Strategic Pricing And Other Bidding Behaviour In Public Tenders Of Passenger Railway Services," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(2), pages 161-194, June.
    2. G. Obermann & T. Kostal, 2003. "Public Procurement at the Local Level in Austria: The Economic Consequences of Compulsory Competitive Tendering for Public Services," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 74(1), pages 139-162, March.
    3. Gunnar Alexandersson & Staffan Hultén, 2006. "Predatory bidding in competitive tenders: A Swedish case study," European Journal of Law and Economics, Springer, vol. 22(1), pages 73-94, July.
    4. repec:kap:iaecre:v:11:y:2005:i:3:p:329-342 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public procurement; local government; Netherlands; transportation services for disabled;
    All these keywords.

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories

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