Analyzing public procurement practices: a case study (Columbia)

Abstract

Expenditures on public procurement the purchases of goods, services, and public works by governments and public utilities, typically constitute between ten and twenty percent of a country's gross domestic product. Therefore, it is critical to ensure that the best practices are being implemented by government agencies. This paper is comprised of two parts. In the first part we present the results of a characterization of litigation associated with procurement contracts disputes involving the Colombian government. This characterization, obtained using a logistic regression, enables us to provide recommendations on the appropriate contract structure to decrease the likelihood of litigation. In the second half of this project, data envelopment analysis (DEA) is used to assess the efficiency of the public school system under a concession organization (i.e. operated by private parties). The analysis sheds light on the effectiveness of the concession scheme as an alternative to publicly managed and operated schools.