Corruption in Public Procurement: Finding the Right Indicators

Ferwerda, Joras; Deleanu, Ioana; Unger, Brigitte

doi:10.1007/s10610-016-9312-3

Cited by 73 publications

(51 citation statements)

References 34 publications

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“…One of the essential segments and research questions is certainly the input data. The studies are focused on the detection and analysis of high-quality corruption indicators, risk patterns, or red flags as representatives of corruptive or suspicious actions with the aim of developing models with the best predictive features [3,4,5,6,22,24,31,32]. Including different databases, pattern recognition, and elicitation knowledge is part of the Knowledge Discovery area.…”

Section: B Corruption Indicatorsmentioning

confidence: 99%

Review of Public Procurement Fraud Detection Techniques Powered by Emerging Technologies

Modrušan¹,

Rabuzin²,

Mršić³

2021

IJACSA

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Numerous studies and various methods have been used to detect and prevent corruption in public procurement. With the development of IT technology and thus the digitization of the Public Procurement Process (PPP), the amount of available data is increasing. Studies have shown progress in this area and have revealed many challenges and open issues geared to the various goals outlined in this paper. Different data mining and business intelligence techniques and methods are being used to develop models that will find any suspicious public procurement process, contracts, economic operators, or to classify observations as corrupt. In addition to using classification models, methods such as association rules and graph databases are used to find relationships between economic operators and contracting authorities, as well as to find daughter companies that participate in PPP collusion. Therefore, this paper addresses a comprehensive review of the emerging techniques and models used for the detection of suspicious or corrupted observations, their goals, open issues, challenges, methods and metrics used, tools, and relevant data sources. The findings show that models are mostly fitted on historical data and move in the direction of an early warning system. Moreover, the efficiency of fraud or anomaly detection depends on data set quality and detection of the most important red flags. The study is presenting a summary of identified fraud detection model objectives such as predicting fraud risk in contracts and contractors or finding split purchases, and detection of used data sources such as public procurement process or economic operator data.

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Section: B Corruption Indicatorsmentioning

confidence: 99%

Review of Public Procurement Fraud Detection Techniques Powered by Emerging Technologies

Modrušan¹,

Rabuzin²,

Mršić³

2021

IJACSA

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“…There are many more indicators (Ferwerda et al, 2017;OECD, 2013; International Competition Network, 2010) of possible collusion, bid rigging (e.g. location distance of an offeror's enterprise vs location of offered services, simultaneous attendance in procedures of the same set of offerors, frequency of interaction through trade associations, staff moving between companies, market transparency, e.g.…”

Section: Other Indicatorsmentioning

confidence: 99%

Client’s Expectations vs Contractor’s Pricing. Fair Prices or Bid Rigging

Anysz¹,

Foremny²

2020

XV International Conference on Durability of Building Materials and Components. eBook of Proceedings

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The road construction sector is a specific part of the construction industry. It happens very rarely that a section of a road is financed also by a private entity. The other factor distinguishing it-is a significant value of road construction contracts. The Client's estimates of the value of the prospective contracts have to be based on the market prices in case of public procurement. However, this market is dominated by public orders. There is no comparison to the value of works ordered on the private part of the construction market, which is found more efficient by economists. Widely applied the "design and build" type of orders make the comparisons of the unit prices more difficult. The huge differences between the Client's estimates and the winning prices in the road construction public tender procedures are the bases of speculations about the fairness of the procedures. These differences can have a varied origin. There are several reasons for them e.g. varied contractor's risk, the size of the structure, type of order, the dynamics of the road construction market. Nevertheless, fraudulent practices can make the winning price much higher than the Client's estimate. The article is an attempt to finding the limit i.e. what part of these differences can be explained by fair, market reasons. If the found limit is exceeded, it should make the Client carefully consider the offers placed. The analysis is based on collected data concerning almost 400 tender procedures for the sections of roads in Poland in 2014-2017.

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“…The corruption in the public procurement is examined in more details in the studies by Fazekas and Toth [31] and Fervarda et al [32]. Both studies prove that accurate and profoundly structured data are necessary for a creation of the quality analytical framework.…”

Section: Background Of the Studymentioning

confidence: 99%

Efficiency Evaluation of Public Procurement of Medical Equipment

Gavurová¹,

Kubák²

2020

Preprint

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At present, the health systems of many countries face complex challenges even if their priority objectives remain the same - to provide sustainable health systems at the current and the prognostic demographic changes and requirements in a health system. The quality and the efficiency of healthcare delivery and their mutual conformity have been brought to public attention. Similarly, the quality and the efficiency of an entire process depends on the instrumentation and its procurement that represents a significant economic and procedural issue in the healthcare systems for a long time. Many reports of the public procurement processes and research studies declare this fact. The primary aim of this study is to evaluate the public procurement efficiency in the health system by means of the valuation approach, or savings’ estimates that are achieved by the public procurement. The savings were defined as a percentage difference between the estimated and the final contract price. The secondary objective is to examine an influence of selected variables on a creation of savings in the public procurement process by means of a regression analysis. The researched variables are as follows: time, method, procurement, NUTS level of procurement, Common Procurement Vocabulary Code, number of offers. The analysis results showed interesting findings. The number of offers has a significantly positive impact on the savings. It means that if the number of offers increases by one unit, the savings will increase by 15.6%. Also, time variable (year) has a positive impact on the savings. Consequently, it may be assumed that the public procurement process is improving from a time perspective. It may be partially caused by the fact that a new public procurement legislative has been valid since 2015. The NUTS level has also an impact on the savings in relation to the public procurement. The public procurements which took place at the level of a state were more beneficial as the public procurements at the regional level. Also, the procurement method was statistically significant parameter of a regression analysis. The competition actions together with a negotiation process created higher savings in comparison to tenders. In case of the CPV codes, the most significant savings were achieved in the group of ‘various medicinal products’. The study’s results provide a valuable knowledge for the creators of policies and a realization of the national strategic plans within the health system. Also, these results support a creation of national and international benchmarks in this area and a networking of international partnerships in the area of a public procurement that focus on a development of methodologies and comparative platforms creation.

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Corruption in Public Procurement: Finding the Right Indicators

Cited by 73 publications

References 34 publications

Review of Public Procurement Fraud Detection Techniques Powered by Emerging Technologies

Review of Public Procurement Fraud Detection Techniques Powered by Emerging Technologies

Client’s Expectations vs Contractor’s Pricing. Fair Prices or Bid Rigging

Efficiency Evaluation of Public Procurement of Medical Equipment

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