Aggiornato A.A. 2020-2021
Lezioni online su https://zoom.us/my/aulap1
University of Rome Tor Vergata – Faculty of Economics
Academic Year 2020-2021
Master of Sciences in Business Administration
Economics of Procurement
CLASSROOM
MODULE’s coordinator:
Prof. Gustavo Piga e-mail: gustavo.piga@uniroma2.it tel.: 06/7259-5701
CONTRIBUTORS TO THE MODULE:
Prof. Alessio D’Amato (6 hours)
Dott. Adriano Di Domenicantonio (6 hours)
Prof. Nicola Dimitri (6 hours)
Prof. Gustavo Piga (18 hours)
The Program
Sourcing and procurement are becoming a key strategic function of modern economic organizations. These Lectures are meant to support the student with basic procurement tools.
The topics:
1) Contracts for sourcing and competitive procurement;
2) Corruption and ethics in sourcing;
3) Centralizing procurement: the trade-offs;
4) Quality and procurement;
5) Award Procedures;
6) Contracting Strategies;
7) SMEs and Procurement;
8) Green and Sustainable Procurement,
9) Scoring rules in procurement;
10) Innovation and procurement.
The Material:
The teacher will refer the student, by the end of each week, to the library where she/he will find relevant material on the basis of the following textbooks:
- Handbook of Procurement, edited by Nicola Dimitri, Gustavo Piga and Giancarlo Spagnolo (to be purchased at discount) Cambridge University Press 2) Handouts.
- Jean Tirole and Stéphane Saussier http://www.cae-eco.fr/IMG/pdf/cae-note022-env2.pdf
Exam rules: Presence in class is essential and monitored with signatures. Students with 30 hours presence at least will only face an oral exam with Prof. Piga.
Students with less than 30 hours presence will also pass a written exam and, if passed, an oral exam.
Office Hours, room of Prof. Piga (3rd floor, Building B): via appointment via e-mail.
Lesson 1, Prof. Gustavo Piga, Monday, September 14th, 2020, 9-11 AM
Lesson 2, Prof. Gustavo Piga, Tuesday, September 15th, 2020, 9-11 AM
Lesson 3, Prof. Gustavo Piga, Wednesday, September 16th, 2020, 9-11 AM
Lesson 4, Prof. Gustavo Piga, Monday, September 21st, 2020, 9-11 AM
Lesson 5, Prof. Gustavo Piga, Tuesday, September 22nd, 2019, 9-11 AM
Lesson 6, Prof. Gustavo Piga, Wednesday, September 23rd, 2020, 9-11 AM
Lesson 10, Prof. Gustavo Piga, Monday, October 5th, 2020, 9-11 AM
Lesson 11, Prof. Gustavo Piga, Tuesday, October 6th, 2020, 9-11 AM
Lesson 12, Prof. Gustavo Piga, Wednesday, October 7th, 2020, 9-11 AM
Lesson 13, Prof. Alessio D’Amato; Monday, October 12nd, 2020, 9-11 AM
Lesson 14, Prof. Alessio D’Amato; Tuesday, October 13rd, 2020, 9-11 AM
Lesson 15, Prof. Alessio D’Amato, Wednesday, October 14h, 2020, 9-11 AM
Prof. Piga will cover the following topics:
Definitions and benchmarking of procurement practices.
Competition and Quality in Procurement: Substitutes or Complements? Summing-up.
Ethics in procurement. Definition of corruption. Modalities of corruption in procurement. Corruption, competition and collusion. Ethics in Procurement. The role of transparency. The role of checks and controls. E-procurement and corruption. The Challenge of e-proc and Centralization or the e-proc and Centralization challenges? Models of E-procurement.
Procurement and small firms.
Centralization of procurement in complex organizations. Benchmarking across public administrations. Possible systems of governance. Impact of centralization. The issue of competences.
Prof. Alessio D’Amato will cover the following topics in the sustainable (and specifically green) procurement literature and public debate, related to the development and implementation of Green Public Procurement (GPP) as an environmental policy tool:
- An introduction to the economics of sustainable development and environmental problems
- GPP: an introduction
- GPP in real life: implementation examples.
- Is GPP an efficient environmental policy tool?
- Cost effectiveness
- Environmental effectiveness
- Incentives to eco-innovation
- How can GPP be improved?
- GPP design and economic performances
- GPP design and enforcement
Lessons 7, 8 and 9, Prof. Nicola Dimitri, Monday, September 28th, Tuesday, September 29th, Wednesday, September 30th, 9-11 AM
Centralizing procurement: the trade-offs;
Award procedures.
- Competitive Tendering
- Negotiation
Procurement Contracting Strategies
- Fixed Price Contracts
- Cost plus fee contracts
- Incentive contracts
Competitive Procurement Design:
- Winner’s Curse, Buyer’s Curse
- Information and the Choice of Auctions
Lots and (Un)Bundling
- Number of Lots: (Un)Bundling, Participation and Competition
- Package Bidding as Endogenous Lot Design
Lessons 17 and 18, Dr. Adriano Di Domenicantonio
Monday, October 19th, 2020, 3-6 PM Tuesday October 20th , 2020, 3-6 PM:
Simulating an awarding procedure from Drafting the tender notice to awarding the contract:
- Procedure and contractual choice.
- Participation and qualitative selection criteria
- Service Level Agreements, Key Performance Indicators and penalties (deductions)
- Contract award criteria and award procedure:
- The choice of the the awarding criteria: LP vs MEAT
- Weighting price and quality
- Introduction to scoring rules
- Application of scoring rules in procurement:
- Manipulability and collusion
A brief profile of the teachers:
Nicola Dimitri:
Nicola Dimitri is Professor of Economics at the University of Siena (Italy) Research Fellow and Innovation Procurement Chair at Maastricht School of Management, Lecturer at the Institute for Advanced Studies (IMT) Lucca (Italy) and Life Member of Clare Hall College (Cambridge-UK). He was formerly Deputy Rector of the University of Siena and Head of the Economics Department. He has been Fullbright Student, Chevening Scholar, NATO-CNR and Fernand Braudel Fellow (EUI). From 2003 until 2008 he collaborated as Economic consultant with the Research Office of Consip, the Italian Procurement Agency for the public sector. His research interests include game and decision theory, behavioral and cognitive economics, procurement, health and pharmaceutical economics, innovation and incentives. He is one of the editors and of the authors of the “Handbook of Procurement (Cambridge University Press, 2006)” as well as of other articles and reports on procurement.
Adriano Di Domenicantonio:
Adriano Di Domenicantonio is a Buyer for a big public utility company in the transportation sector, dealing with technical purchasing. - and has been a procurement consultant at "Advanced Procurement" a consulting, professional training and research firm. As consultant he has worked in projects for the International Fund of Agricultural Development (IFAD), the Region of Lazio, several public utilities companies among which ACEA Ltd., ENI Ltd and Poste Italiane Ltd. He graduated in Economics and he holds a Master in "Procurement Management" from University of Rome “Tor Vergata”.
Alessio D’Amato:
Alessio D’Amato is Associate Professor in Economic Policy, Department of Economics and Finance, University of Rome “Tor Vergata”. His main fields of expertise are: drivers of environmental behaviours; environmental regulation; eco-innovation. He got his PhD in Economics at the University of Rome “Tor Vergata”, where he teaches Green Finance and Public Economics. He has been and is involved in national and international projects, and he is co-author of several working papers, book chapters and papers published on international peer reviewed journals (including Ecological Economics, Energy Economics, Environmental and Resource Economics, Energy Journal, Journal of Regulatory Economics and Resource and Energy Economics).
Gustavo Piga:
Gustavo Piga, Ph. D. in Economics at Columbia University, is Full Professor of Economics at the University of Rome Tor Vergata, where he chairs the Master in Procurement Management. He is the co-editor of the Handbook of Procurement, edited by Cambridge University Press. He has been a procurement consultant and a member of several Procurement Expert Groups. He has chaired the Italian Procurement Agency for Goods and Services, Consip Ltd., between 2002 and 2005. He is also the co-editor of The European Journal of Public Procurement Markets and a columnist for several newspapers. See www.gustavopiga.it for more details.
Aggiornato A.A. 2020-2021
Online lectures at https://zoom.us/my/aulap1
University of Rome Tor Vergata – Faculty of Economics
Academic Year 2020-2021
Master of Sciences in Business Administration
Economics of Procurement
CLASSROOM
MODULE’s coordinator:
Prof. Gustavo Piga e-mail: gustavo.piga@uniroma2.it tel.: 06/7259-5701
CONTRIBUTORS TO THE MODULE:
Prof. Alessio D’Amato (6 hours)
Dott. Adriano Di Domenicantonio (6 hours)
Prof. Nicola Dimitri (6 hours)
Prof. Gustavo Piga (18 hours)
The Program
Sourcing and procurement are becoming a key strategic function of modern economic organizations. These Lectures are meant to support the student with basic procurement tools.
The topics:
1) Contracts for sourcing and competitive procurement;
2) Corruption and ethics in sourcing;
3) Centralizing procurement: the trade-offs;
4) Quality and procurement;
5) Award Procedures;
6) Contracting Strategies;
7) SMEs and Procurement;
8) Green and Sustainable Procurement,
9) Scoring rules in procurement;
10) Innovation and procurement.
The Material:
The teacher will refer the student, by the end of each week, to the library where she/he will find relevant material on the basis of the following textbooks:
- Handbook of Procurement, edited by Nicola Dimitri, Gustavo Piga and Giancarlo Spagnolo (to be purchased at discount) Cambridge University Press 2) Handouts.
- Jean Tirole and Stéphane Saussier http://www.cae-eco.fr/IMG/pdf/cae-note022-env2.pdf
Exam rules: Presence in class is essential and monitored with signatures. Students with 30 hours presence at least will only face an oral exam with Prof. Piga.
Students with less than 30 hours presence will also pass a written exam and, if passed, an oral exam.
Office Hours, room of Prof. Piga (3rd floor, Building B): via appointment via e-mail.
Lesson 1, Prof. Gustavo Piga, Monday, September 14th, 2020, 9-11 AM
Lesson 2, Prof. Gustavo Piga, Tuesday, September 15th, 2020, 9-11 AM
Lesson 3, Prof. Gustavo Piga, Wednesday, September 16th, 2020, 9-11 AM
Lesson 4, Prof. Gustavo Piga, Monday, September 21st, 2020, 9-11 AM
Lesson 5, Prof. Gustavo Piga, Tuesday, September 22nd, 2019, 9-11 AM
Lesson 6, Prof. Gustavo Piga, Wednesday, September 23rd, 2020, 9-11 AM
Lesson 10, Prof. Gustavo Piga, Monday, October 5th, 2020, 9-11 AM
Lesson 11, Prof. Gustavo Piga, Tuesday, October 6th, 2020, 9-11 AM
Lesson 12, Prof. Gustavo Piga, Wednesday, October 7th, 2020, 9-11 AM
Lesson 13, Prof. Alessio D’Amato; Monday, October 12nd, 2020, 9-11 AM
Lesson 14, Prof. Alessio D’Amato; Tuesday, October 13rd, 2020, 9-11 AM
Lesson 15, Prof. Alessio D’Amato, Wednesday, October 14h, 2020, 9-11 AM
Prof. Piga will cover the following topics:
Definitions and benchmarking of procurement practices.
Competition and Quality in Procurement: Substitutes or Complements? Summing-up.
Ethics in procurement. Definition of corruption. Modalities of corruption in procurement. Corruption, competition and collusion. Ethics in Procurement. The role of transparency. The role of checks and controls. E-procurement and corruption. The Challenge of e-proc and Centralization or the e-proc and Centralization challenges? Models of E-procurement.
Procurement and small firms.
Centralization of procurement in complex organizations. Benchmarking across public administrations. Possible systems of governance. Impact of centralization. The issue of competences.
Prof. Alessio D’Amato will cover the following topics in the sustainable (and specifically green) procurement literature and public debate, related to the development and implementation of Green Public Procurement (GPP) as an environmental policy tool:
- An introduction to the economics of sustainable development and environmental problems
- GPP: an introduction
- GPP in real life: implementation examples.
- Is GPP an efficient environmental policy tool?
- Cost effectiveness
- Environmental effectiveness
- Incentives to eco-innovation
- How can GPP be improved?
- GPP design and economic performances
- GPP design and enforcement
Lessons 7, 8 and 9, Prof. Nicola Dimitri, Monday, September 28th, Tuesday, September 29th, Wednesday, September 30th, 9-11 AM
Centralizing procurement: the trade-offs;
Award procedures.
- Competitive Tendering
- Negotiation
Procurement Contracting Strategies
- Fixed Price Contracts
- Cost plus fee contracts
- Incentive contracts
Competitive Procurement Design:
- Winner’s Curse, Buyer’s Curse
- Information and the Choice of Auctions
Lots and (Un)Bundling
- Number of Lots: (Un)Bundling, Participation and Competition
- Package Bidding as Endogenous Lot Design
Lessons 17 and 18, Dr. Adriano Di Domenicantonio
Monday, October 19th, 2020, 3-6 PM Tuesday October 20th , 2020, 3-6 PM:
Simulating an awarding procedure from Drafting the tender notice to awarding the contract:
- Procedure and contractual choice.
- Participation and qualitative selection criteria
- Service Level Agreements, Key Performance Indicators and penalties (deductions)
- Contract award criteria and award procedure:
- The choice of the the awarding criteria: LP vs MEAT
- Weighting price and quality
- Introduction to scoring rules
- Application of scoring rules in procurement:
- Manipulability and collusion
A brief profile of the teachers:
Nicola Dimitri:
Nicola Dimitri is Professor of Economics at the University of Siena (Italy) Research Fellow and Innovation Procurement Chair at Maastricht School of Management, Lecturer at the Institute for Advanced Studies (IMT) Lucca (Italy) and Life Member of Clare Hall College (Cambridge-UK). He was formerly Deputy Rector of the University of Siena and Head of the Economics Department. He has been Fullbright Student, Chevening Scholar, NATO-CNR and Fernand Braudel Fellow (EUI). From 2003 until 2008 he collaborated as Economic consultant with the Research Office of Consip, the Italian Procurement Agency for the public sector. His research interests include game and decision theory, behavioral and cognitive economics, procurement, health and pharmaceutical economics, innovation and incentives. He is one of the editors and of the authors of the “Handbook of Procurement (Cambridge University Press, 2006)” as well as of other articles and reports on procurement.
Adriano Di Domenicantonio:
Adriano Di Domenicantonio is a Buyer for a big public utility company in the transportation sector, dealing with technical purchasing. - and has been a procurement consultant at "Advanced Procurement" a consulting, professional training and research firm. As consultant he has worked in projects for the International Fund of Agricultural Development (IFAD), the Region of Lazio, several public utilities companies among which ACEA Ltd., ENI Ltd and Poste Italiane Ltd. He graduated in Economics and he holds a Master in "Procurement Management" from University of Rome “Tor Vergata”.
Alessio D’Amato:
Alessio D’Amato is Associate Professor in Economic Policy, Department of Economics and Finance, University of Rome “Tor Vergata”. His main fields of expertise are: drivers of environmental behaviours; environmental regulation; eco-innovation. He got his PhD in Economics at the University of Rome “Tor Vergata”, where he teaches Green Finance and Public Economics. He has been and is involved in national and international projects, and he is co-author of several working papers, book chapters and papers published on international peer reviewed journals (including Ecological Economics, Energy Economics, Environmental and Resource Economics, Energy Journal, Journal of Regulatory Economics and Resource and Energy Economics).
Gustavo Piga:
Gustavo Piga, Ph. D. in Economics at Columbia University, is Full Professor of Economics at the University of Rome Tor Vergata, where he chairs the Master in Procurement Management. He is the co-editor of the Handbook of Procurement, edited by Cambridge University Press. He has been a procurement consultant and a member of several Procurement Expert Groups. He has chaired the Italian Procurement Agency for Goods and Services, Consip Ltd., between 2002 and 2005. He is also the co-editor of The European Journal of Public Procurement Markets and a columnist for several newspapers. See www.gustavopiga.it for more details.
Prof.ssa Lucia Leonelli
