Do Procurement Rules Impact Infrastructure Investment Efficiency? An Empirical Analysis of Inversão das Fases in São Paulo State
As a means to reduce delays in public works implementation, a number of Brazilian states have recently reformed their procurement rules allowing contractor price proposals to be assessed before the technical evaluation of submitted bids is undertak...
| Main Authors: | , , , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110111095726 http://hdl.handle.net/10986/3301 |
| Summary: | As a means to reduce delays in public
works implementation, a number of Brazilian states have
recently reformed their procurement rules allowing
contractor price proposals to be assessed before the
technical evaluation of submitted bids is undertaken (in a
procedure known as inversao das fases). In order to evaluate
the effects of such reform, this paper adopts a
difference-in-differences methodology to compare the
procurement performance of Sao Paulo state (a reformer
state) and Minas Gerais' (a non-reformer state) largest
water and sewage utility along three efficiency dimensions:
(i) procurement process duration; (ii) likelihood of
complaint resolution litigation; and (iii) prices paid to
contractors. The analysis finds that the reform is
associated with a 24 day reduction in the duration of
procurement processes for large projects and a 7 percentage
point drop in the likelihood of court challenges
irrespective of project size. Although both effects are
economically important, only the latter is statistical
significant. Finally, the paper finds no evidence of an
effect of the procurement reform on prices paid. |
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