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Flexibility in contract design - is that possible?

Camén, Carolina ; Tsaxiri, Panagiota ; Aldenius, Malin LU and Lidestam, Helene (2020) In Research in Transportation Economics 83.
Abstract

Public procurement is widely used in order to incorporate competition into public services. Competition in procurement often leads to efficiency but the process can also raise some problems. While providing the procurement documents you do not know who will be your upcoming partner. Another aspect is how flexibility can be managed in contract design while maintaining a high service quality. The aim of this study is twofold. Firstly, the aim is to investigate how flexibility has been expressed and historically described in bus tendering documents. Secondly, to explore how the actors define or describe flexibility and its importance in tendering. Data was collected from ten years of tendering documents in the bus sector in Sweden and from... (More)

Public procurement is widely used in order to incorporate competition into public services. Competition in procurement often leads to efficiency but the process can also raise some problems. While providing the procurement documents you do not know who will be your upcoming partner. Another aspect is how flexibility can be managed in contract design while maintaining a high service quality. The aim of this study is twofold. Firstly, the aim is to investigate how flexibility has been expressed and historically described in bus tendering documents. Secondly, to explore how the actors define or describe flexibility and its importance in tendering. Data was collected from ten years of tendering documents in the bus sector in Sweden and from interviews and a workshop. The results showed that flexibility in tendering documents has been and still is low for the operators. However, the actors wish for more flexibility and new forms of contracts can make it easier to include higher degrees of flexibility in future contracts. The paper contributes to the ongoing discussion about how to design contracts and to manage flexibility. The study has potential to create knowledge and contribute to better decision making for future procurement of bus transport.

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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Bus, Competitive tendering, Contract design, Flexibility, Public transport
in
Research in Transportation Economics
volume
83
article number
100899
publisher
Elsevier
external identifiers
  • scopus:85087412164
ISSN
0739-8859
DOI
10.1016/j.retrec.2020.100899
language
English
LU publication?
yes
id
7c4d2b14-e143-455d-88d1-1abb32d9574f
date added to LUP
2020-07-20 08:27:21
date last changed
2022-04-18 23:36:21
@article{7c4d2b14-e143-455d-88d1-1abb32d9574f,
  abstract     = {{<p>Public procurement is widely used in order to incorporate competition into public services. Competition in procurement often leads to efficiency but the process can also raise some problems. While providing the procurement documents you do not know who will be your upcoming partner. Another aspect is how flexibility can be managed in contract design while maintaining a high service quality. The aim of this study is twofold. Firstly, the aim is to investigate how flexibility has been expressed and historically described in bus tendering documents. Secondly, to explore how the actors define or describe flexibility and its importance in tendering. Data was collected from ten years of tendering documents in the bus sector in Sweden and from interviews and a workshop. The results showed that flexibility in tendering documents has been and still is low for the operators. However, the actors wish for more flexibility and new forms of contracts can make it easier to include higher degrees of flexibility in future contracts. The paper contributes to the ongoing discussion about how to design contracts and to manage flexibility. The study has potential to create knowledge and contribute to better decision making for future procurement of bus transport.</p>}},
  author       = {{Camén, Carolina and Tsaxiri, Panagiota and Aldenius, Malin and Lidestam, Helene}},
  issn         = {{0739-8859}},
  keywords     = {{Bus; Competitive tendering; Contract design; Flexibility; Public transport}},
  language     = {{eng}},
  publisher    = {{Elsevier}},
  series       = {{Research in Transportation Economics}},
  title        = {{Flexibility in contract design - is that possible?}},
  url          = {{http://dx.doi.org/10.1016/j.retrec.2020.100899}},
  doi          = {{10.1016/j.retrec.2020.100899}},
  volume       = {{83}},
  year         = {{2020}},
}