Work detail

Analysis of the effect of lowest price criterion in the selection process of public procurement

Author: Mgr. Alexandra Blahová
Year: 2015 - summer
Leaders: PhDr. Ing. Jiří Skuhrovec PhD.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 90
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/152160/
Abstract: Public procurement in the Czech Republic is a complex process directly settled by the legal
procurement framework which defines various contract-awarding procedures. This study
focuses on the part of selection process when procurers can decide between using lowest price
criterion or most economically advantageous tender (MEAT). We found an evidence of
preference of lowest price criterion, especially in the recent years. The main goal of the study
is therefore to provide a comprehensive analysis of the leading drivers of selection of specific
criteria and their consequential effects. Taking into account various characteristics of public
procurement processes, we found out that in general lowest price criterion is preferred by
public contracting authorities and by procurers with larger number of employees. This type of
selection process also consequently provides an interesting trade-off between higher
competition in terms of number of bidders, higher stability in terms of less interventions by
the Office for the Protection of Competition (OPC) but also higher probability of consequent
extraworks.

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