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Finance and Credit
 

Researching the public procurement system: An analysis of unscrupulous suppliers

Vol. 29, Iss. 5, MAY 2023

Received: 5 February 2020

Received in revised form: 12 February 2020

Accepted: 28 February 2020

Available online: 30 May 2023

Subject Heading: Financial system

JEL Classification: L10

Pages: 1142–1169

https://doi.org/10.24891/ea.19.3.430

Vera G. KOGDENKO National Research Nuclear University MEPhI, Moscow, Russian Federation
kogdenko7@mail.ru

https://orcid.org/0000-0001-9732-1174

Subject. The article addresses issues of prequalification in the public procurement system.
Objectives. The study analyzes the registry of unscrupulous suppliers and substantiates proposals for assessing the reputation of suppliers in the public procurement system for the purpose of prequalification.
Methods. The study employs general scientific principles and research methods, like abstraction, generalization of approaches of domestic and foreign authors on issues of prequalification and reputation assessment.
Results. The paper presents a methodology for analyzing a set of suppliers, which includes two stages. At the first stage, it examines a set of suppliers by industry affiliation, form of ownership, legal status, affiliation of participants, and degree of competition. At the second stage, it assesses the reputation of suppliers in the public procurement system by four components: corporate, financial, market, and social. The methodology was tested on unscrupulous suppliers data registry, which was formed on the basis of SPARK-Interfax information resource. Calculations show that the sampled population of unscrupulous suppliers includes three groups according to industry affiliation, i.e. trade, construction, and all other industries. In the legal status category, limited liability companies prevail. In the form of ownership category, the dominant group of unscrupulous suppliers is private business. The population is characterized by a low degree of concentration.
Conclusions. Unscrupulous suppliers have negative reputation characteristics by which it is possible to identify them at the prequalification stage and debar from bidding.

Keywords: public procurement, prequalification, reputation

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