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The Competition Myth – Why Competitive Tendering Fails

TJ Ryan Foundation Research Associate, Murray B. Stanley, provides an analysis of competitive tendering procedures and why there are preferable alternatives to current approaches to government procurement.

‘Competitive tendering (bidding) is a widely used procurement method. The idea behind competitive tendering is that it forces suppliers to compete and consequently the purchaser will gain better “value for money”. This paper challenges that belief by examining both the advantages and disadvantages of competitive tendering. The paper also proposes a procurement approach that is superior to competitive tendering.’

Keywords: competitive tendering, advantages, disadvantages, bidding, government procurement, W. Edwards Deming

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