Influence of the Public Procurement Procedure Type on the Duration of Public Procurement

Abstract

This study analyses how important is the influence of the procedure type and a number of received bids on the duration of the public procedure process. Efficiency and speed of public procurement process diminish inventory turnaround times, direct and indirect costs of procurement, hastens and improves manageability of core processes in the organizations obliged to the public procurement process. Our study focuses on the quantitative analysis of the influence of the procedural public procurement framework mostly determined by the central government, and describes potential other factors of efficiency which can be influenced at the local level. Dataset was obtained from the Public procurement Office of Serbia, and it included 42,850 cases of public procurement after the correction of missing and "dirty" data. Using statistical methods we have presented two linear models, where the type of procedure and number of received bids account for roughly 23% of the variability in the dependent variable. This paper provides suggestions for improvement of efficiency of public procurement, as well as for data that needs to be tracked to develop more comprehensive, accurate and reliable prediction model of the duration of the public procurement process.