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Search Results (98)

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Keywords = public tenders

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21 pages, 997 KiB  
Article
Explainable AI and Fuzzy Linguistic Interpretation for Enhanced Transparency in Public Procurement: Analyzing EU Tender Awards
by Cosmin Cernăzanu-Glăvan and Andrei-Ștefan Bulzan
Mathematics 2025, 13(13), 2215; https://doi.org/10.3390/math13132215 - 7 Jul 2025
Viewed by 296
Abstract
Despite the ideal of a unified Single Market, a powerful “home bias” pervades EU public procurement, hinting at unseen barriers that conventional analysis fails to capture. This study introduces an interpretable AI framework to investigate these dynamics, pairing a LightGBM model with SHapley [...] Read more.
Despite the ideal of a unified Single Market, a powerful “home bias” pervades EU public procurement, hinting at unseen barriers that conventional analysis fails to capture. This study introduces an interpretable AI framework to investigate these dynamics, pairing a LightGBM model with SHapley Additive exPlanations (SHAP) to examine the vast Tenders Electronic Daily (TED) database (2018–2023). Concretely, we propose a fuzzy linguistic layer that translates SHAP’s complex quantitative outputs into intuitive, human-readable terms. Our model effectively distinguishes local from non-local awards (AUC ≈ 0.855), revealing that while high-value contracts expectedly attract broader competition, the most potent predictors are a country’s own history of local awards and structural factors like the buyer’s type and location. This points not to isolated incidents, but, rather, to deep-seated patterns shaping market fairness. Our combined XAI-Fuzzy approach offers a new instrument for transparent governance, enabling policymakers to diagnose market realities and forge a more genuinely open and equitable European public square. Full article
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8 pages, 269 KiB  
Proceeding Paper
The Use of Artificial Intelligence to Calculate the Estimate of a Public Procurement Act
by Riyad Berraida and EL Abbadi Laila
Eng. Proc. 2025, 97(1), 7; https://doi.org/10.3390/engproc2025097007 - 11 Jun 2025
Viewed by 511
Abstract
Public procurement refers to the purchasing of goods and services for public entities. Before launching the call for tender, the public body prepares an estimate of the procurement act; this estimate is taken into consideration by the tender commission before awarding the contract. [...] Read more.
Public procurement refers to the purchasing of goods and services for public entities. Before launching the call for tender, the public body prepares an estimate of the procurement act; this estimate is taken into consideration by the tender commission before awarding the contract. Through technological innovation, buyers can now rely on new solutions as a support to improve the way of calculating the estimate. In this paper, we present research that has been performed in this field, to produce different AI solutions that can be used by buyers to make the estimate more accurate. Full article
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27 pages, 4651 KiB  
Article
Addressing the Value Management Approach in Public Construction Works: Barriers, Critical Success Factors, and Potential Risks
by Nusret Mum, Şenay Atabay, Hamdi Tekin and Durmuş Akkaya
Sustainability 2025, 17(12), 5247; https://doi.org/10.3390/su17125247 - 6 Jun 2025
Viewed by 639
Abstract
Value management (VM) is a management approach aimed at inspiring individuals, nurturing their talents, and fostering synergy and innovation, all with the objective of enhancing an organization’s overall performance. This methodology seeks to reduce costs while actively engaging a diverse array of stakeholders [...] Read more.
Value management (VM) is a management approach aimed at inspiring individuals, nurturing their talents, and fostering synergy and innovation, all with the objective of enhancing an organization’s overall performance. This methodology seeks to reduce costs while actively engaging a diverse array of stakeholders throughout the project lifecycle. Despite its significance in construction projects, there exists a notable gap in the literature regarding the implementation of value management in public works. This study aims to identify the barriers that hinder the effective implementation of value management, as well as the critical success factors and potential risks associated with its adoption in public projects. Additionally, it assesses Turkey’s readiness for implementation within the construction sector by examining awareness levels, legislative issues, and other pertinent topics. To conduct the study, a quantitative survey was administered to 337 participants from various roles within the Turkish construction sector. The findings revealed that the inherent complexity of construction projects, time constraints, and difficulties in alternative selection are the primary barriers to implementing the value management approach in public works. Regarding the critical success factors for effective VM implementation, the involvement of end users, a collaborative workshop environment, and the multidisciplinary composition of the VM team were identified as the most significant contributors to success. Additionally, the study highlighted potential risks associated with the adoption of VM in public works, including low operating efficiency, a low participation rate in tenders, and cost overruns. The discussion also addressed legislative and process-oriented strategies for the potential adoption of value management. Full article
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21 pages, 272 KiB  
Article
Bridging the Literature Gap on eProcurement Systems: Insights from Saudi Arabia’s Sustainable Development Transition
by Basel Sultan, Ibrahim Alhammad, AlAnoud AlOthman and Ghayda AlSehli
Sustainability 2025, 17(8), 3429; https://doi.org/10.3390/su17083429 - 11 Apr 2025
Viewed by 1313
Abstract
This paper highlights the transition from traditional procurement systems to the newly introduced eProcurement system in Saudi Arabia, emphasizing the differences and improvements and their implications for sustainable development. The new system aims to enhance transparency, clarify purchasing methodologies, and build trust with [...] Read more.
This paper highlights the transition from traditional procurement systems to the newly introduced eProcurement system in Saudi Arabia, emphasizing the differences and improvements and their implications for sustainable development. The new system aims to enhance transparency, clarify purchasing methodologies, and build trust with the government through effective governance of government purchases and tender management. Guided by Royal Decree, this system aligns with the eProcurement Program to transition into digital processes for proficient bids and government purchases, contributing to more efficient and sustainable procurement practices. While some public agencies have attempted to adopt the new model contract for executing construction projects, it has faced challenges due to its lack of alignment with the best practices and sustainability considerations. The authors argue that many large projects remain exempt from this system, which poses obstacles to achieving the goals of sustainable economic development. The objective of this paper is to explore the newly revised Saudi procurement contracts in comparison with traditional public works contracts, with a focus on how they address socio-economic and environmental sustainability. The research provides an overview of various aspects related to public works contracts (PWCs) in Saudi Arabia, including framework agreements, online reverse auctions, industry localization, knowledge transfer, traditional lump sum contracts, two-phase tenders, and construction project competitions, analyzing their alignment with sustainable development goals. There is limited literature on recent models introduced by the Saudi government, but there are extensive resources on general contract law principles and international public policy. This foundation helps with understanding the legal aspects of public works contracts in Saudi Arabia, their alignment with international standards, and their implications for fostering sustainable development. By examining the literature, researchers can gain insights into the legal and policy framework governing public works contracts in Saudi Arabia and their role in promoting sustainability. The importance of this research lies in its comparative analysis, offering valuable insights into the evolution of procurement practices in Saudi Arabia and their contribution to sustainable socio-economic growth. Full article
(This article belongs to the Special Issue Digital Economy and Sustainable Development)
43 pages, 2619 KiB  
Article
Evaluating Corruption-Prone Public Procurement Stages for Blockchain Integration Using AHP Approach
by Gideon Adjorlolo, Zhiwei Tang, Gladys Wauk, Philip Adu Sarfo, Alhassan Baako Braimah, Richard Blankson Safo and Benedict N-yanyi
Systems 2025, 13(4), 267; https://doi.org/10.3390/systems13040267 - 8 Apr 2025
Viewed by 2929
Abstract
Corruption in public procurement remains a challenge to good governance, especially in developing nations. Blockchain technology has been espoused as a new paradigm for achieving sustainable public procurement practices for effective service delivery and, by extension, promoting sustainable development. Given the potential of [...] Read more.
Corruption in public procurement remains a challenge to good governance, especially in developing nations. Blockchain technology has been espoused as a new paradigm for achieving sustainable public procurement practices for effective service delivery and, by extension, promoting sustainable development. Given the potential of blockchain technology, its implementation has been slow in developing countries. Additionally, there is an inadequate decision support framework to prioritize corruption-prone stages of the public procurement cycle for strategic blockchain integration at the most critical corruption-prone stages of the public procurement cycle given the scarce resources available in developing countries. Therefore, we employed a matured theory that is the principal-agent theory to identify key agency problems related to public procurement in developing countries. An interview with 25 experts and a thorough review of Ghana’s Auditor General produced seven public procurement cycle stages. Further, a survey was designed for experts and stakeholders to prioritize the identified procurement stages under the agency problems through the Analytic Hierarchy Process (AHP). Our results revealed that tender evaluation was the most critical stage susceptible to corruption, followed by contract management and procurement planning in the public procurement stages. Additionally, for the relative importance of the criteria, information asymmetry was ranked first, followed by moral hazard, and then adverse selection. This study offers a targeted framework for blockchain deployment in public procurement from an African country perspective. The outcome of this study provides insights for policymakers and procurement practitioners to know the most critical stages of public procurement stages and leverage blockchain technology given the scarcity of resources in developing countries to aid sustainable public procurement. The proposed blockchain framework can enhance service delivery, citizens’ trust, and international donor confidence in partnership and funding for public procurement projects in developing countries. Full article
(This article belongs to the Section Systems Practice in Social Science)
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20 pages, 570 KiB  
Article
Can We Have Both? The Challenges of Efficiency Outcomes in a Public Procurement System and Reaching the Strategic Goals of Procurement
by Sašo Matas, Žan Jan Oplotnik and Timotej Jagrič
Sustainability 2025, 17(6), 2475; https://doi.org/10.3390/su17062475 - 12 Mar 2025
Viewed by 1019
Abstract
This article explores the cost efficiency of public procurement procedures, techniques and strategic policies. Member States in the EU spend large sums of money on the procurement of various items, yet public procurement in the EU struggles with issues of competitiveness, efficiency and [...] Read more.
This article explores the cost efficiency of public procurement procedures, techniques and strategic policies. Member States in the EU spend large sums of money on the procurement of various items, yet public procurement in the EU struggles with issues of competitiveness, efficiency and overlapping goals. The competitiveness and efficiency of various factors, procedures, techniques and sustainable measures employed in public procurement procedures that influence cost efficiency were examined in this study using data from Slovenian public procurement over the past eight years. The analysis employed a binary logit model that facilitates the efficient utilization of public funds and predicts substantial price reductions in public procurement procedures. The findings underscore the significance of transparency and open markets. The optimal cost-efficiency outcomes are achieved through combinations of transparent procedures and an undisclosed market environment during the tendering phase, complemented by less binding secondary procurement objectives. Conversely, procurement techniques that tend to disclose more information about competitors in the procurement process are found to be less cost-effective. Non-mandatory sustainable policies in public procurement tend to lead to better results in terms of cost efficiency than those imposed by an obligatory legal framework. Full article
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14 pages, 352 KiB  
Article
Game Theory Framework for Mitigating the Cost Pendulum in Public Construction Projects
by Yahel Giat and Amichai Mitelman
Games 2025, 16(2), 11; https://doi.org/10.3390/g16020011 - 3 Mar 2025
Viewed by 1578
Abstract
The coexistence of the winner’s curse and cost overruns in the construction industry implies a cost pendulum in which the winning bid is undervalued, whereas the final payment to the contractor is overvalued. We posit that this results from a strategic interaction between [...] Read more.
The coexistence of the winner’s curse and cost overruns in the construction industry implies a cost pendulum in which the winning bid is undervalued, whereas the final payment to the contractor is overvalued. We posit that this results from a strategic interaction between three stakeholders: the public agency (PA), the project manager (PM), and the winning contractor, and we propose a game-theoretic framework to model this dynamic. In the current state of practice, the subgame between the contractor and the PM leads to opportunistic contractor behavior and lenient supervision, resulting in increased costs for the PA. We analyze how procedural and cultural interventions by the PA, specifically shifting from a low-bid to an average-bid auction and incentivizing stricter PM oversight, alter the strategic equilibrium. Our findings indicate that while each change alone provides limited improvement, implementing both significantly reduces cost overruns by aligning stakeholder incentives. The findings of this analysis provide insight into how public agencies can mitigate the widespread problem of cost overruns. Full article
(This article belongs to the Section Applied Game Theory)
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23 pages, 10443 KiB  
Article
Case Studies on Construction Defects in Civil Construction: Evidence and Possible Solutions
by Mauro Sassu, Matteo Ariu, Fabio Doveri and Martina Ferrini
Buildings 2025, 15(4), 514; https://doi.org/10.3390/buildings15040514 - 7 Feb 2025
Viewed by 2237
Abstract
This paper deals with the occurrence of construction defects, particularly those due to water penetration in buildings. The considered defects mainly originated from improper management of validation checks during the design or execution phases. From a technical point of view, validation checks are [...] Read more.
This paper deals with the occurrence of construction defects, particularly those due to water penetration in buildings. The considered defects mainly originated from improper management of validation checks during the design or execution phases. From a technical point of view, validation checks are valuable tools for public administrations to mitigate litigation and construction defects during or after building and infrastructure work. A large proportion of defects are due to rigid design procedures, which require technical specialists to address specific issues (architectural, structural, material, etc.), and the main problems are often caused by a lack of coordination. Another frequent cause of defects is the sequence of planning stages (preliminary, final, and executive in Italian regulation), and different technicians may manage the same design, sometimes with different tender procedures. In other cases, the contradictory requirements imposed by various regulatory authorities (fire corps, agency for the management of artistic heritage, etc.) create conflicts and lead to wrong technical decisions through attempts to fulfill contradictory requests. An independent technical board, such as a team of validators, is therefore able to help the regulatory authority, reducing the risks of errors during the design process and avoiding litigation during construction phases. Several approaches to validation are presented, from “best practice” to “prescriptive validation”. An analysis of four examples of litigation due to relevant defects is shown and discussed, where a lack of coordination and the absence of real validation checks are the main causes of litigation. A discussion of these examples provides indications and suggestions for strategies to mitigate the occurrence of construction defects. Full article
(This article belongs to the Section Construction Management, and Computers & Digitization)
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17 pages, 3549 KiB  
Article
Wastewater-Based Epidemiological Surveillance in France: The SUM’EAU Network
by Frédéric Jourdain, Laila Toro, Zoé Senta-Loÿs, Marilyne Deryene, Walid Mokni, Tess Azevedo Da Graça, Yann Le Strat, Sofiane Rahali, Ami Yamada, Anna Maisa, Maël Pretet, Jeanne Sudour, Christophe Cordevant, Thierry Chesnot, Veronica Roman, Amandine Wilhelm, Benoît Gassilloud and Damien Mouly
Microorganisms 2025, 13(2), 281; https://doi.org/10.3390/microorganisms13020281 - 26 Jan 2025
Cited by 2 | Viewed by 2059
Abstract
Wastewater surveillance is a powerful public health tool which gained global prominence during the COVID-19 pandemic. This article describes the development and implementation of the national wastewater surveillance network in France: SUM’EAU. Preliminary work included defining a sampling strategy, evaluating/optimising analytical methods, launching [...] Read more.
Wastewater surveillance is a powerful public health tool which gained global prominence during the COVID-19 pandemic. This article describes the development and implementation of the national wastewater surveillance network in France: SUM’EAU. Preliminary work included defining a sampling strategy, evaluating/optimising analytical methods, launching a call for tenders to select network laboratories and producing wastewater monitoring indicators. SUM’EAU was then deployed in three stages: (i) a pilot study, (ii) the transfer of analytical activities from the National Reference Laboratory to four selected network laboratories, and (iii) the extension of the system to additional sampling sites. Currently, SUM’EAU monitors SARS-CoV-2 across 54 wastewater treatment plants in mainland France. Once a week on business days, 24 h flow-proportional composite samples are collected at plant inlets and transported at 5 °C (±3 °C) to partner laboratories for analysis. The analytical process involves sample concentration, RNA extraction, and digital RT-PCR/q-RT-PCR to detect and quantify the presence of the SARS-CoV-2 genome in wastewater. Subsequently, data are transferred to Santé publique France, the French National Public Health Agency, for analysis and interpretation. While SUM’EAU has been instrumental in monitoring the COVID-19 pandemic and holds significant potential for broader application, securing sustainable funding for its operation remains a major challenge. Full article
(This article belongs to the Special Issue Surveillance of SARS-CoV-2 Employing Wastewater)
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10 pages, 236 KiB  
Article
Analysis of Implementation Strategies for Nationwide HPV Vaccination Programs Across European Union Countries
by Wojciech Miazga, Tomasz Tatara, Mariusz Gujski, Janusz Ostrowski, Jarosław Pinkas and Urszula Religioni
Vaccines 2024, 12(12), 1325; https://doi.org/10.3390/vaccines12121325 - 26 Nov 2024
Cited by 2 | Viewed by 2134
Abstract
Background/Objectives: Human papillomavirus (HPV) vaccination programs play a critical role in the primary prevention of HPV-related diseases, including cervical cancer. However, the principles governing the implementation of these programs vary across European Union (EU) countries. The objective of this study was to analyze [...] Read more.
Background/Objectives: Human papillomavirus (HPV) vaccination programs play a critical role in the primary prevention of HPV-related diseases, including cervical cancer. However, the principles governing the implementation of these programs vary across European Union (EU) countries. The objective of this study was to analyze and compare the strategies for implementing HPV vaccination programs across the EU, with a focus on access, vaccine selection, and procurement processes. Methods: This study utilized a comprehensive review of official websites from government bodies, public health organizations, and dedicated vaccination platforms in each of the 27 EU member states. Additionally, a search of Tenders Electronic Daily (TED) was conducted to examine the criteria used in tendering processes for vaccine suppliers involved in national HPV vaccination programs. Results: All 27 EU countries provide public funding for HPV vaccination, with 26 countries offering free vaccination for both girls and boys. In 22 of these countries, the nine-valent HPV vaccine is the only option available for free under national programs. Estonia and Ireland are exceptions, where a single dose of Gardasil 9 is administered. Most countries adhere to the approved vaccination schedules, though slight variations exist. The predominant criterion for selecting vaccine suppliers in national tenders is the lowest price offered. Conclusions: HPV vaccination programs across the EU are uniformly funded through public health systems, yet access to free vaccination and specific program details vary by country. These variations reflect the diverse healthcare systems and procurement strategies in place, which can impact the systemic approach to HPV prevention. Further harmonization of vaccine procurement and implementation strategies may enhance the effectiveness and equity of HPV vaccination across Europe. Full article
16 pages, 1890 KiB  
Article
Key Factors in the Design of Urban Underground Metro Lines
by Amichai Mitelman and Yahel Giat
Sustainability 2024, 16(21), 9293; https://doi.org/10.3390/su16219293 - 25 Oct 2024
Cited by 4 | Viewed by 2863
Abstract
Designing sustainable underground metro lines in dense urban environments is a highly challenging task that requires the collaboration of numerous stakeholders and consultants to make crucial decisions influenced by several factors. While it is impossible to address every issue influencing the decision-making process, [...] Read more.
Designing sustainable underground metro lines in dense urban environments is a highly challenging task that requires the collaboration of numerous stakeholders and consultants to make crucial decisions influenced by several factors. While it is impossible to address every issue influencing the decision-making process, identifying key factors and their interdependencies is essential for optimal design. This study focuses on six critical aspects of the reference design of metro systems: (1) track alignment, (2) tunneling strategy, (3) station typology, (4) operations and maintenance, (5) procurement strategy, and (6) environmental aspects. Amongst these aspects, we identify track alignment as the primary driving factor that influences the other factors. We analyze the decision between shallow and deep alignments as an engineering choice that necessitates balancing conflicting factors and constraints. Our contribution lies in mapping these factors and their dependencies, thus offering policymakers, project managers, and designers a framework to navigate the design process. Our discussion also provides guidance to public agencies in tendering for design teams more efficiently. Drawing from lessons learned by experienced design managers, this study aims to fill the gap in the literature by offering a generalist perspective on metro design. Full article
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19 pages, 2915 KiB  
Article
Isolation and Characterization of Two Novel Lytic Bacteriophages against Salmonella typhimurium and Their Biocontrol Potential in Food Products
by Yaxiong Song, Wentao Gu, Yaozhong Hu, Bowei Zhang, Jin Wang, Yi Sun, Wenhui Fu, Xinyang Li, Xiaolong Xing and Shuo Wang
Foods 2024, 13(19), 3103; https://doi.org/10.3390/foods13193103 - 28 Sep 2024
Cited by 6 | Viewed by 2208
Abstract
Foodborne pathogens, such as Salmonella, are major factors that pose significant threats to global food safety and public health. Salmonella typhimurium is a prominent serotype contributing to non-typhoidal salmonellosis, which is a prevalent foodborne illness affecting humans and animals. Bacteriophages are considered [...] Read more.
Foodborne pathogens, such as Salmonella, are major factors that pose significant threats to global food safety and public health. Salmonella typhimurium is a prominent serotype contributing to non-typhoidal salmonellosis, which is a prevalent foodborne illness affecting humans and animals. Bacteriophages are considered one of the most environmentally friendly biocontrol agents, particularly in the food industry, owing to their high specificity and high safety. However, the emergency of phage-resistant mutants limits the biocontrol effect of phage treatment, leading to the requirement for a high diversity of lytic phages. Therefore, the study isolated and characterized two novel lytic Salmonella bacteriophages (SPYS_1 and SPYS_2) targeting S. typhimurium ATCC14028 and evaluated their effectiveness in reducing the contamination rates for milk and chicken tenders. Morphological and genomic analyses indicated that Salmonella phages SPYS_1 and SPYS_2 are novel species classified under the genus Skatevirus and the genus Berlinvirus, respectively. Both phages exhibited high stability across a broad range of thermal and pH conditions. The one-step growth curve result suggested that both phages had a short adsorption time and a large burst size in a single lytic cycle. The phage SPYS_1 demonstrated a noteworthy inhibition effect on the growth of S. typhimurium ATCC14028 in milk, resulting in a ~2-log reduction within the 2 to 4 h range. Overall, both phages have shown significant potential for application in food safety in the future. Full article
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19 pages, 4995 KiB  
Article
Intelligent Procurement Scheduling System for Items Involving Public Procurement
by Nadanakumar Muniswamy and Parthiban Palanisamy
Appl. Syst. Innov. 2024, 7(5), 81; https://doi.org/10.3390/asi7050081 - 5 Sep 2024
Viewed by 2176
Abstract
The procurement of goods is considered a critical part in supply chain management, and it often has several unprecedented barriers leading to failure of the project. Uncertainties in availability, cost and demand-supply matching combined with stringent government norms andprocurement policies of various organizations [...] Read more.
The procurement of goods is considered a critical part in supply chain management, and it often has several unprecedented barriers leading to failure of the project. Uncertainties in availability, cost and demand-supply matching combined with stringent government norms andprocurement policies of various organizations need a thorough study in the present-day environment to develop sustainable and lean supplychain management. In this paper, use of a fuzzy logic system to estimate the tender finalization period of engineering items that involve public procurement is discussed. The tender finalization period is normally based on key parameters, such as criticality of the requirement of an item for the project, the number of variants available in a supply, competition amongst bidders, frequency of buying the item and the tender value. The methodology to arrive at the membership functions of the key parameters and the logic used to arrive at the tender finalization period estimation are well discussed in this paper. The proposed fuzzy logic approach was applied to an industrial case and the results show good agreement between expert opinion and the fuzzy logic system output. This paper will definitely help procurement managers in any organization to plan their activities in an effective manner. Full article
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12 pages, 1620 KiB  
Article
Comparison of Likelihood Ratios from Probabilistic Genotyping for Two-Person Mixtures across Different Assays and Instruments
by Dennis McNevin and Mark Barash
Forensic Sci. 2024, 4(3), 441-452; https://doi.org/10.3390/forensicsci4030028 - 2 Sep 2024
Viewed by 1520
Abstract
Continuous probabilistic genotyping (PG) provides a means to estimate the probative value of DNA mixtures tendered as evidence in court and subject to alternative propositions about the contributors to the mixtures. The weight of that evidence, however, may be valued differently, depending on [...] Read more.
Continuous probabilistic genotyping (PG) provides a means to estimate the probative value of DNA mixtures tendered as evidence in court and subject to alternative propositions about the contributors to the mixtures. The weight of that evidence, however, may be valued differently, depending on which forensic laboratory undertook the DNA analysis. There is a need, therefore, to have a means for the comparison of likelihood ratios (LRs) generated by continuous PG amongst different laboratories for the same initial DNA sample. Such a comparison would enable the courts and the public to make judgements about the reliability of this type of evidence. There are particular mixtures and methods for which such a comparison is meaningful, and this study explores them for the short tandem repeat (STR) electropherograms of two-person mixtures obtained from the PROVEDIt Database. We demonstrate a common maximum attainable LR for a given set of common STR loci and a given DNA mixture that is consistent across three different STR profiling assays and two different capillary electrophoresis instruments. Full article
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23 pages, 601 KiB  
Article
Towards The Development of a Governance System for Central Purchasing Body Collaboration and Performance
by Douwe J. P. van de Goorberg, Marcel A. J. Stuijts and Andrew J. Thomas
Standards 2024, 4(3), 79-101; https://doi.org/10.3390/standards4030006 - 4 Jul 2024
Viewed by 1409
Abstract
This article explores the relationship between local authorities (mainly municipal organisations) and a central purchasing body (CPB). It critiques, from an agency theory perspective, the difficulties in aligning socio-economic goals of multiple municipal organisations with the pursuit of procurement goals by the CPB. [...] Read more.
This article explores the relationship between local authorities (mainly municipal organisations) and a central purchasing body (CPB). It critiques, from an agency theory perspective, the difficulties in aligning socio-economic goals of multiple municipal organisations with the pursuit of procurement goals by the CPB. The aim of this study is to explore which solutions, (governance mechanisms) for agency problems within a Dutch municipality–CPB relationship, are critical in aligning socio-economic goals within a collaborative public procurement (CPP) setting. The quantitative analysis of data from a questionnaire was used to conduct an explorative factor analysis (EFA). The questionnaire was issued to all municipalities in the Netherlands. Grounded on the EFA, the underlying factors within five categories of governance mechanisms for agency problems were recognised. Besides supporting the existing theory, this study provides additional knowledge in the field of agency theory and collaborative public procurement (CPP). The study resulted in the development of a comprehensive measurement scale to conduct research based on agency theory within the context of CPP governance and specifically in the area of central purchasing bodies. The results of this study are applicable in practise on an administrative and management level. Municipal organisations that initiate and/or govern a central purchasing body can take the results of this study into account to develop new standards on the further development of the CPB. At a managerial level, this study provides useful insight for decision-makers in municipal organisations to improve the way in which a CPB executes collective tenders at hand and determine if the joint approach delivers the best results in terms of their procurement objectives. Full article
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