Thesis assignment – IEM or IBA
Circle - Thresholds for open tendering
Most countries and most companies use some threshold value above which it is deemed worthwhile to use open competitive tendering. An open competitive tendering procedure is more costly and takes more time than an invited bidding or negotiation procedure. For purchases above the threshold value these additional costs are assumed to outweigh the economic benefits.
There is a lot of discussion on the height of these thresholds. While some organization argue for higher thresholds, others argue for lower thresholds. This debate has been sparked by a recent publication in the Journal of Public Procurement (Molander, 2014).
Several subtopics can be covered within this circle:
- Analyzing the literature on this topic and combining several research results
- Overview of various systems used in practice
- Determining formulas that outline the dependence of the thresholds on the tendering costs (quantitative skills required)
· Prof. dr. Jan Telgen