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Publication(World Bank, Washington, DC, 2021-06) World BankProcurement of commonly used items is a challenge for government agencies. If the items are repeatedly purchased in one-off fashion, so that the total volume is significant, there may be potential problems like loss of economy of scale, loss of efficiency, lower competition, and no long-term partnership with suppliers. Framework agreements (FAs) have emerged as a potential solution for the issues. Many countries (particularly in Americas and Europe) have used FAs successfully, though the use of FAs by countries outside these regions is still very low. Hence there is tremendous potential for scaling-up the use of FAs in developing countries. This study uses public procurement data from Brazil and Colombia, two major users of FAs. The subsequent chapters will describe the data used for the analysis, the methodology, and the findings. The country contexts, designs of FAs, available data and research questions vary across Brazil and Colombia, and therefore the empirical findings are not comparable between these two countries. For each country case, the analysis provides insights on the benefits and costs of using FAs and useful lessons that can be informative for other countries that are considering adopting or strengthening the use of FAs with similar design. Chapter one gives introduction. Chapters two and three cover data analytics from Brazil and Colombia respectively. Additionally, following annexures are part of this report: annexure-A: a brief introduction to regression analysis; annexure-B: supporting data and information - Brazil; and annexure-C: supporting data and information - Colombia.
Publication(World Bank, Washington, DC, 2018-06) Turkewitz, Joel ; Nozadze, Sandro ; Davenport, Stephen R. ; Sjoberg, Fredrik ; Mellon, Jonathan ; Brough, Mark ; La Cascia, Hunt ; Agar, Mediha ; La Cascia, Joseph HuntingtonThe document provides a brief overview of the size and composition of public procurement. It then examines performance in relation to two key outcome variables – the success rate of competitive tenders, and the level of competition in open procedures. The nature of the performance issues in these two areas are explored, and specific recommendations are developed for improving performance in the short to medium term. A different perspective on performance is then provided through examining the degree to which small and medium firms participate in procurement tenders and are awarded contracts. A final section provides a limited number of recommendations on steps to establish a continuous process of data analysis and performance evaluation.