Konkurencijos ir pirkimo apimties poveikis kainai viešųjų pirkimų konkursuose
The Impact of Competition and Purchase Volume on the Price in Public Procurement Tenders

Summary/Abstract: Public procurement is a very important part of economy, in Lithuania public procurement constitutes 10% of gross national product, while in European Union it constitutes 16%. One of the key elements in public procurement is the price. This is the variable that can be influenced by a purchasing entity. The purpose of the article is to validate the model defining relationship between the dependent variable, the price and independent variables, the competition and the purchase volume in public procurement tenders. Purchase management scientific literature studies and public procurement research led to the model which is based in the auction theory. Auction theory defines that the price (the winning bid) in auction depends on the object valuations by bidders (bidder’s costs for public contract execution) and competition (the number of bidders). Larger quantities can influence the costs of bidder but it is not motivating to bid lower if the competition is not sufficient. Therefore, relationship between the competition, the purchase volume and the price is complex. There are few hypotheses raised to test the model defining the relationship between the dependent variable, the price and the independent variables, the competition and the purchase volume in public procurement tenders. First hypothesis states that the price (the winning bid) depends on the competition (the number of bidders) in public procurement tenders done through the central purchasing authority. Second hypothesis states that the price (the winning bid) depends on the purchase volume in public procurement tenders done through the central purchasing authority. Third hypothesis states that the competition (the number of bidders) depends on the purchase volume in public procurement tenders done through the central purchasing authority. The unit of analysis in the research is tender results which consist of several variables observed: the unit price (pw), the quantity (q), the number of bidders (n). The analysis focused on public tenders which are done through the central contracting authority because technical specifications of these tenders are standard and can be comparable. 3 groups of goods with the same technical specification were selected for the analysis. Correlation and ANOVA statistical analysis were applied to test hypothesis. The results of the statistical analysis revealed that the winning bid negatively correlates with the number of bidders in a tender. It was noticed that the average of winning bid has a statistically significant negative trend, when the number of bidders is rising. The results of analysis showed that in the first group the average of the winning price falls by 10% when the number of suppliers rises from 1 to 2, in the second group the winning price falls by 20%, in the third – by 7%. Some unexpected results were received from the test of the second hypothesis. Significant relationship between the winning bid and the purcha

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