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Article
Publication date: 1 March 2009

Marcos Singer, Garo Konstantinidis, Eduardo Roubik and Eduardo Beffermann

Scientific literature reports scarce evidence of whether Internetbased procurement systems improve the efficiency of State purchases. We propose a methodology to estimate savings…

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Abstract

Scientific literature reports scarce evidence of whether Internetbased procurement systems improve the efficiency of State purchases. We propose a methodology to estimate savings in: (i) the centralization of administrative tasks, and (ii) price differentials due to a larger number of contractors and suppliers bidding on contracts. We test our methods with ChileCompra, the Chilean e-procurement agency. During 2007, 885 Chilean State agencies used this system to purchase US$4.5 billion in products and services. Our preliminary results show price reductions of 2.65% and administrative cost savings of 0.28%-0.38% between 2006 and 2007.

Details

Journal of Public Procurement, vol. 9 no. 1
Type: Research Article
ISSN: 1535-0118

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