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...

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Main Authors: Blancas, Luis, Chioda, Laura, Cordella, Tito, Borges de Oliveira, Alexandre, Vardy, Felix
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
WEB
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
id okr-10986-3301
recordtype oai_dc
spelling okr-10986-33012021-04-23T14:02:08Z Do Procurement Rules Impact Infrastructure Investment Efficiency? An Empirical Analysis of Inversão das Fases in São Paulo State Blancas, Luis Chioda, Laura Cordella, Tito Borges de Oliveira, Alexandre Vardy, Felix AFFILIATED ORGANIZATIONS AUCTION AUCTIONS AUDITOR AUDITORS AWARD DECISIONS AWARD OF CONTRACT BACKBONE BANK PROCUREMENT BID EVALUATION BID EVALUATION COMMITTEES BID EVALUATION PROCESS BID OPENING BID PRICE BID SUBMISSION DEADLINE BIDDER COMPLAINTS BIDDERS BIDDING DOCUMENTS BIDS BUYER CAPITAL EXPENDITURES CLAUSE COMPETITIVE BID COMPETITIVE BIDS COMPETITIVE PRICES COMPLAINT CONSULTING SERVICES CONTRACT AWARD CONTRACT PRICE CONTRACT PRICES CONTRACTOR CONTRACTORS COURT DATA LIMITATIONS DISCLOSURE ENERGY INFRASTRUCTURE EVALUATION COMMITTEE EVALUATION PERIOD FEDERAL GOVERNMENT GOVERNMENT CONTRACTORS GOVERNMENT OFFICIALS GOVERNMENT PROCUREMENT GOVERNMENT PROCUREMENT SYSTEM IDENTIFICATION NUMBER IMPLEMENTING AGENCIES IMPLEMENTING AGENCY INNOVATION INSPECTION LAWS LEGAL BASIS MATERIAL MEDIA NATIONAL LAWS OFFICIAL GAZETTE OPEN ACCESS OPEN BIDDING OPEN COMPETITIVE BIDDING PERFORMANCE INDICATORS POST-QUALIFICATION PRICE ENVELOPES PRICE EVALUATION PRICE PROPOSALS PROCUREMENT PROCUREMENT LAW PROCUREMENT LAWS PROCUREMENT MECHANISM PROCUREMENT METHOD PROCUREMENT METHODS PROCUREMENT OF WORKS PROCUREMENT PERFORMANCE PROCUREMENT PROCEDURE PROCUREMENT PROCESS PROCUREMENT PROCESSES PROCUREMENT REFORM PROCUREMENT RULES PROCUREMENT SYSTEMS PROCUREMENT TRANSACTIONS PRODUCTIVITY PUBLIC PUBLIC INVESTMENT PUBLIC INVESTMENT PROGRAM PUBLIC INVESTMENTS PUBLIC PROCUREMENT PUBLIC PROCUREMENT LAW PUBLIC PROCUREMENT REFORM PUBLIC WORKS QUALIFICATION CRITERIA QUALIFICATION DOCUMENTS QUALIFIED BIDDERS QUALITY STANDARDS QUERIES REGULATORY FRAMEWORK RESULT RESULTS SELLER SERVICE DELIVERY STATEMENT SUPPLIERS TAXPAYER MONEY TECHNICAL BIDS TECHNICAL COMMITTEE TENDERS UNIQUE ID WEB WINNING BIDDER 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. 2012-03-19T17:59:50Z 2012-03-19T17:59:50Z 2011-01-01 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 English Policy Research working paper ; no. WPS 5528 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean South America America Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AFFILIATED ORGANIZATIONS
AUCTION
AUCTIONS
AUDITOR
AUDITORS
AWARD DECISIONS
AWARD OF CONTRACT
BACKBONE
BANK PROCUREMENT
BID EVALUATION
BID EVALUATION COMMITTEES
BID EVALUATION PROCESS
BID OPENING
BID PRICE
BID SUBMISSION DEADLINE
BIDDER COMPLAINTS
BIDDERS
BIDDING DOCUMENTS
BIDS
BUYER
CAPITAL EXPENDITURES
CLAUSE
COMPETITIVE BID
COMPETITIVE BIDS
COMPETITIVE PRICES
COMPLAINT
CONSULTING SERVICES
CONTRACT AWARD
CONTRACT PRICE
CONTRACT PRICES
CONTRACTOR
CONTRACTORS
COURT
DATA LIMITATIONS
DISCLOSURE
ENERGY INFRASTRUCTURE
EVALUATION COMMITTEE
EVALUATION PERIOD
FEDERAL GOVERNMENT
GOVERNMENT CONTRACTORS
GOVERNMENT OFFICIALS
GOVERNMENT PROCUREMENT
GOVERNMENT PROCUREMENT SYSTEM
IDENTIFICATION NUMBER
IMPLEMENTING AGENCIES
IMPLEMENTING AGENCY
INNOVATION
INSPECTION
LAWS
LEGAL BASIS
MATERIAL
MEDIA
NATIONAL LAWS
OFFICIAL GAZETTE
OPEN ACCESS
OPEN BIDDING
OPEN COMPETITIVE BIDDING
PERFORMANCE INDICATORS
POST-QUALIFICATION
PRICE ENVELOPES
PRICE EVALUATION
PRICE PROPOSALS
PROCUREMENT
PROCUREMENT LAW
PROCUREMENT LAWS
PROCUREMENT MECHANISM
PROCUREMENT METHOD
PROCUREMENT METHODS
PROCUREMENT OF WORKS
PROCUREMENT PERFORMANCE
PROCUREMENT PROCEDURE
PROCUREMENT PROCESS
PROCUREMENT PROCESSES
PROCUREMENT REFORM
PROCUREMENT RULES
PROCUREMENT SYSTEMS
PROCUREMENT TRANSACTIONS
PRODUCTIVITY
PUBLIC
PUBLIC INVESTMENT
PUBLIC INVESTMENT PROGRAM
PUBLIC INVESTMENTS
PUBLIC PROCUREMENT
PUBLIC PROCUREMENT LAW
PUBLIC PROCUREMENT REFORM
PUBLIC WORKS
QUALIFICATION CRITERIA
QUALIFICATION DOCUMENTS
QUALIFIED BIDDERS
QUALITY STANDARDS
QUERIES
REGULATORY FRAMEWORK
RESULT
RESULTS
SELLER
SERVICE DELIVERY
STATEMENT
SUPPLIERS
TAXPAYER MONEY
TECHNICAL BIDS
TECHNICAL COMMITTEE
TENDERS
UNIQUE ID
WEB
WINNING BIDDER
spellingShingle AFFILIATED ORGANIZATIONS
AUCTION
AUCTIONS
AUDITOR
AUDITORS
AWARD DECISIONS
AWARD OF CONTRACT
BACKBONE
BANK PROCUREMENT
BID EVALUATION
BID EVALUATION COMMITTEES
BID EVALUATION PROCESS
BID OPENING
BID PRICE
BID SUBMISSION DEADLINE
BIDDER COMPLAINTS
BIDDERS
BIDDING DOCUMENTS
BIDS
BUYER
CAPITAL EXPENDITURES
CLAUSE
COMPETITIVE BID
COMPETITIVE BIDS
COMPETITIVE PRICES
COMPLAINT
CONSULTING SERVICES
CONTRACT AWARD
CONTRACT PRICE
CONTRACT PRICES
CONTRACTOR
CONTRACTORS
COURT
DATA LIMITATIONS
DISCLOSURE
ENERGY INFRASTRUCTURE
EVALUATION COMMITTEE
EVALUATION PERIOD
FEDERAL GOVERNMENT
GOVERNMENT CONTRACTORS
GOVERNMENT OFFICIALS
GOVERNMENT PROCUREMENT
GOVERNMENT PROCUREMENT SYSTEM
IDENTIFICATION NUMBER
IMPLEMENTING AGENCIES
IMPLEMENTING AGENCY
INNOVATION
INSPECTION
LAWS
LEGAL BASIS
MATERIAL
MEDIA
NATIONAL LAWS
OFFICIAL GAZETTE
OPEN ACCESS
OPEN BIDDING
OPEN COMPETITIVE BIDDING
PERFORMANCE INDICATORS
POST-QUALIFICATION
PRICE ENVELOPES
PRICE EVALUATION
PRICE PROPOSALS
PROCUREMENT
PROCUREMENT LAW
PROCUREMENT LAWS
PROCUREMENT MECHANISM
PROCUREMENT METHOD
PROCUREMENT METHODS
PROCUREMENT OF WORKS
PROCUREMENT PERFORMANCE
PROCUREMENT PROCEDURE
PROCUREMENT PROCESS
PROCUREMENT PROCESSES
PROCUREMENT REFORM
PROCUREMENT RULES
PROCUREMENT SYSTEMS
PROCUREMENT TRANSACTIONS
PRODUCTIVITY
PUBLIC
PUBLIC INVESTMENT
PUBLIC INVESTMENT PROGRAM
PUBLIC INVESTMENTS
PUBLIC PROCUREMENT
PUBLIC PROCUREMENT LAW
PUBLIC PROCUREMENT REFORM
PUBLIC WORKS
QUALIFICATION CRITERIA
QUALIFICATION DOCUMENTS
QUALIFIED BIDDERS
QUALITY STANDARDS
QUERIES
REGULATORY FRAMEWORK
RESULT
RESULTS
SELLER
SERVICE DELIVERY
STATEMENT
SUPPLIERS
TAXPAYER MONEY
TECHNICAL BIDS
TECHNICAL COMMITTEE
TENDERS
UNIQUE ID
WEB
WINNING BIDDER
Blancas, Luis
Chioda, Laura
Cordella, Tito
Borges de Oliveira, Alexandre
Vardy, Felix
Do Procurement Rules Impact Infrastructure Investment Efficiency? An Empirical Analysis of Inversão das Fases in São Paulo State
geographic_facet Latin America & Caribbean
Latin America & Caribbean
South America
America
Brazil
relation Policy Research working paper ; no. WPS 5528
description 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.
format Publications & Research :: Policy Research Working Paper
author Blancas, Luis
Chioda, Laura
Cordella, Tito
Borges de Oliveira, Alexandre
Vardy, Felix
author_facet Blancas, Luis
Chioda, Laura
Cordella, Tito
Borges de Oliveira, Alexandre
Vardy, Felix
author_sort Blancas, Luis
title Do Procurement Rules Impact Infrastructure Investment Efficiency? An Empirical Analysis of Inversão das Fases in São Paulo State
title_short Do Procurement Rules Impact Infrastructure Investment Efficiency? An Empirical Analysis of Inversão das Fases in São Paulo State
title_full Do Procurement Rules Impact Infrastructure Investment Efficiency? An Empirical Analysis of Inversão das Fases in São Paulo State
title_fullStr Do Procurement Rules Impact Infrastructure Investment Efficiency? An Empirical Analysis of Inversão das Fases in São Paulo State
title_full_unstemmed Do Procurement Rules Impact Infrastructure Investment Efficiency? An Empirical Analysis of Inversão das Fases in São Paulo State
title_sort do procurement rules impact infrastructure investment efficiency? an empirical analysis of inversão das fases in são paulo state
publishDate 2012
url 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
_version_ 1764386758611435520