Cost-Benefit Analysis of Bid Protests: A Representative Bidder Model

• Published in: Defence and peace economics Vol. 31; no. 5; pp. 502 - 516
• Main Author: Melese, Francois
• Format: Journal Article
• Language: English
• Published: Switzerland Routledge 03.07.2020; Taylor & Francis LLC
• Subjects: Accountability; acquisition; Bias; Bids; Competition; Corruption; Cost benefit analysis; Costs; Defense programs; Defense spending; Demonstrations & protests; Economic models; Federal agencies; Fraud; Government agencies; Military equipment; Money; National security; Portfolios; Procurement; Protest; Public debt; Purchasing

The goal of any procurement process is to obtain 'value for money.' Bid protest systems are intended to help. The U.S. Department of Defense, NATO, the EU, UN, OECD, and WTO, all authorize losing bidders to protest public procurements. The threat of a protest is meant to increase governmen...