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Can the Use of Recommended Procurement Practices Save Money?
Author(s) -
DUNCOMBE WILLIAM,
SEARCY CYNTHIA
Publication year - 2007
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.1540-5850.2007.00875.x
Subject(s) - bidding , procurement , purchasing , business , government procurement , government (linguistics) , function (biology) , finance , marketing , linguistics , philosophy , evolutionary biology , biology
Procurement is an essential business function of government. Despite the importance of effective procurement practices to government efficiency, very little is known about what local governments do in practice, and how procurement practices affect government spending. This paper reports the results of a survey on procurement practices used by New York State school districts. To examine the potential costs savings from adoption of particular procurement practices, the authors estimate cost models for materials, supplies, and equipment spending. Results from the cost model indicate that the use of competitive bidding, purchasing calendars, central warehouses, and bidders lists are associated with significant cost savings.