Paper/Speech Details of Conference Program for the 14th NISPAcee Annual Conference Program Overview Main Conference Theme Author(s) Jan Pavel University of Economics of Prague Praha 3 Czech Republic Title Methods of selection of external supplier of local public services and the impact of the quality of selection process on the effectiveness and efficiency of local public services delivery in the Czech Republic File Paper files are available only for conference participants, please login first. Presenter Abstract The public procurement is very important instrument to guarantee effective use of a great part of public expenditures. Because of its importance in any developed country guarantees of a transparent and professional system of public procurement should exist. During last years the size of public procurement market in the CEE transition economies increased. As of today we estimate that public procurement in CEE represents more than 10 % of GDP (in the Czech Republic even 17 % of GDP). Because of decentralization a large proportion of public procurement is realized on the level of local governments, and not only for simple procurement of goods and services, but also to cover costs of delivery of local public services produced by external suppliers (contracted/outsourced services). In the first part of our paper we will try to estimate by several methods the value of real public procurement market in the Czech Republic for 1995-2003 period. The main tool used is the system of national accounts, theory of neoinstitutional economy and the concept of transaction costs. We can show that calculated values are significantly different from official reports on public procurement; this means a large part of procurement is not realized by competitive methods. The second part of our paper we plan to provide empirical data concerning the situation of local public service delivery in the Czech Republic. We will sort data according to the form of delivery. The analysis of the award strategies of municipalities will highlight main factors of decision making - namely the size of municipality, the character of service and the procurement legislation. The third part of our paper plans to focus on evaluation of the relation between the award method used and outcomes (costs of the service). We suppose that competitive award should lead to increased effectiveness (lower unit costs of the service delivery of given quality). The last part will provide synthetical conclusions. It will highlight the fact that the public procurement legislation and principles are abused in many cases of external delivery of local public services, with negative impacts on effectiveness of the delivery. We plan to provide also several suggestions, how to improve existing situation. Key Words: Czech Republic; Effectiveness; Public Expenditure; Public Procurement. Transaction Costs
