How does performance history impact supplier selection in the public sector?

The paper studies if the performance history impacts supplier selection in the French public sector context. While French public procurement legislation forbids consideration of the past contract wins in supplier selection, public contractors may still rely on contract win history for highly complex transactions.  Using French Official Journals (BOAMP), we collected all public procurement transactions of 976 suppliers that had at least one transaction per year, over a period of six years (between 2006 and 2011). We conducted a two-level hierarchical linear auto-regression analysis and a feature evaluation analysis for all transactions.  The paper finds significant variation between the transactions of different markets, as well as in the overall positive impact of past wins and in the detailed impact patterns and thresholds of each market. The findings may allow refinement of existing contract awarding strategies and of current legislation.  The paper aims at empirically testing whether a supplier’s degree of success in any given year, measured by the number of public contracts won, may have an impact on the likelihood that the same supplier is awarded a public contract the following year. We conclude that suppliers retained for public contracts could benefit from building public buyers’ loyalty using a key account selling approach rather than systematically seeking to acquire new contracts.

Mamavi, O., Nagati, H., Werhle, F. et Paché, G., (2015). How performance history impact future supplier selections ? The case of French public procurement, Industrial Management & Data System. Vol. 115, n°1 – download here