Teaching Case - Experiments in Public Procurement: Italy Buys in Bulk

Experiments in Public Procurement: Italy Buys in Bulk

×
×
Price:
$3.95

Educator Access
A review copy of this case is available free of charge to educators and trainers. Please create an account or sign in to gain access to this material.

Permission to Reprint
Each purchase of this product entitles the buyer to one digital file and use. If you intend to distribute, teach, or share this item, you must purchase permission for each individual who will be given access. Learn more about purchasing permission to reprint.

  • Product Description

    Abstract:
    Under pressure from the European Union, which had admitted Italy to the Eurozone hesitantly, on condition that the country control its deficit spending and reduce its high public debt, the central government in Italy initiated dozens of cost-cutting programs in the late 1990s and early 2000s. One such program aimed to economize, to the tune of billions of euros, on public procurement of goods and services. The program's first priority was to identify products and services bought widely by public agencies at every level of government, and consolidate them into nation-spanning mega contracts. By aggregating public sector demand in this manner, analysts had reasoned, Italy's public sector could greatly increase its market leverage and win big discounts from suppliers.  This appraisal proved correct but also politically explosive. In November 2003, Italy's Minister of Economy and Finance ordered a temporary halt to the program to give political and administrative leaders a chance to figure out what to do.

    Learning Objective:
    This decision-forcing case allows students to consider how Italy might have averted this political backlash, and challenges them to propose how the government might adjust the project in ways that address the concerns of the critics, but still allow it to improve procurement efficiency and reduce its costs.

  • Other Details

    Publication Date: September 30, 2008
    HKS Case Number: 1925.0
    Case Author: Pamela Varley
    Faculty Lead: John D. Donahue
    Pages (incl. exhibits): 14
    Setting: Europe, Italy
    Language: English
    Funding Source: EDS Government/Industry Case Study Fund
    _year: 2000-2009
    _pages: 1-15
    _geography: Europe
  • Warranty Information

    /review/1925.0.EducatorCopy.pdf

×
×