Disadvantaged business enterprise goals in government procurement contracting: an analysis of bidding behavior and costs

Economics

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Disadvantaged business enterprise goals in government procurement contracting: an analysis of bidding behavior and costs. / De Silva, Dakshina G.; Dunne, Timothy; Kosmopoulou, Georgia et al.
In: International Journal of Industrial Organization, Vol. 30, No. 4, 07.2012, p. 377-388.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

De Silva, DG, Dunne, T, Kosmopoulou, G & Lamarche, C 2012, 'Disadvantaged business enterprise goals in government procurement contracting: an analysis of bidding behavior and costs', International Journal of Industrial Organization, vol. 30, no. 4, pp. 377-388. https://doi.org/10.1016/j.ijindorg.2011.12.003

APA

De Silva, D. G., Dunne, T., Kosmopoulou, G., & Lamarche, C. (2012). Disadvantaged business enterprise goals in government procurement contracting: an analysis of bidding behavior and costs. International Journal of Industrial Organization, 30(4), 377-388. https://doi.org/10.1016/j.ijindorg.2011.12.003

Vancouver

De Silva DG, Dunne T, Kosmopoulou G, Lamarche C. Disadvantaged business enterprise goals in government procurement contracting: an analysis of bidding behavior and costs. International Journal of Industrial Organization. 2012 Jul;30(4):377-388. Epub 2011 Dec 24. doi: 10.1016/j.ijindorg.2011.12.003

Author

De Silva, Dakshina G. ; Dunne, Timothy ; Kosmopoulou, Georgia et al. / Disadvantaged business enterprise goals in government procurement contracting: an analysis of bidding behavior and costs. In: International Journal of Industrial Organization. 2012 ; Vol. 30, No. 4. pp. 377-388.

Bibtex

@article{657cb28bdcc942cf9da657b3ea42eaeb,

title = "Disadvantaged business enterprise goals in government procurement contracting: an analysis of bidding behavior and costs",

abstract = "Programs that encourage the participation of disadvantaged business enterprises (DBE) as subcontractors have been a part of government procurement auctions for over three decades. In this paper, we examine the impact of a program that requires prime contractors to subcontract out a portion of a highway procurement project to DBE firms. We study how DBE subcontracting requirements affect bidding behavior in federally funded projects. Within a symmetric independent private value framework, we use the equilibrium bidding function to obtain the cost distribution of firms undertaking projects either with or without subcontracting goals. We then use nonparametric estimation methods to uncover and compare the cost of firm bidding on a class of asphalt projects related to surface treatment in Texas. The analysis shows little differences in the cost structure between projects that have subcontracting goals and those that do not.",

keywords = "Affirmative action, Minority businesses, Government procurement",

author = "{De Silva}, {Dakshina G.} and Timothy Dunne and Georgia Kosmopoulou and Carlos Lamarche",

year = "2012",

month = jul,

doi = "10.1016/j.ijindorg.2011.12.003",

language = "English",

volume = "30",

pages = "377--388",

journal = "International Journal of Industrial Organization",

publisher = "Elsevier Inc.",

number = "4",

}

RIS

TY - JOUR

T1 - Disadvantaged business enterprise goals in government procurement contracting: an analysis of bidding behavior and costs

AU - De Silva, Dakshina G.

AU - Dunne, Timothy

AU - Kosmopoulou, Georgia

AU - Lamarche, Carlos

PY - 2012/7

Y1 - 2012/7

N2 - Programs that encourage the participation of disadvantaged business enterprises (DBE) as subcontractors have been a part of government procurement auctions for over three decades. In this paper, we examine the impact of a program that requires prime contractors to subcontract out a portion of a highway procurement project to DBE firms. We study how DBE subcontracting requirements affect bidding behavior in federally funded projects. Within a symmetric independent private value framework, we use the equilibrium bidding function to obtain the cost distribution of firms undertaking projects either with or without subcontracting goals. We then use nonparametric estimation methods to uncover and compare the cost of firm bidding on a class of asphalt projects related to surface treatment in Texas. The analysis shows little differences in the cost structure between projects that have subcontracting goals and those that do not.

AB - Programs that encourage the participation of disadvantaged business enterprises (DBE) as subcontractors have been a part of government procurement auctions for over three decades. In this paper, we examine the impact of a program that requires prime contractors to subcontract out a portion of a highway procurement project to DBE firms. We study how DBE subcontracting requirements affect bidding behavior in federally funded projects. Within a symmetric independent private value framework, we use the equilibrium bidding function to obtain the cost distribution of firms undertaking projects either with or without subcontracting goals. We then use nonparametric estimation methods to uncover and compare the cost of firm bidding on a class of asphalt projects related to surface treatment in Texas. The analysis shows little differences in the cost structure between projects that have subcontracting goals and those that do not.

KW - Affirmative action

KW - Minority businesses

KW - Government procurement

U2 - 10.1016/j.ijindorg.2011.12.003

DO - 10.1016/j.ijindorg.2011.12.003

M3 - Journal article

VL - 30

SP - 377

EP - 388

JO - International Journal of Industrial Organization

JF - International Journal of Industrial Organization

IS - 4

ER -

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