Localization of Subjective Assessment Risks in the Public Procurement System Based on Fuzzy Logic

  • Kirill Anatolievich BELOKRYLOV Southern Federal University, Rostov-on-Don
  • Lidiya Pavlovna RUNOVA Southern Federal University, Rostov-on-Don

Abstract

The evolving market for public procurement in the Russian Federation as an effective mechanism designed to satisfy the needs of the state for goods and services is described by a number of specific features, the most important of which is a high degree of economic risks, primarily the corruption risk. Various anti-corruption tools have been developed and efficiently used in the procurement practice, in particular the rules for evaluation of bids for participation in the tender for a state contract. However, following the statutory regulations does not always allow to prevent subjectivity and favoritism of state customers, i.e. the corruption in evaluation of the bids. The purpose of this article is to use the effectively proven methods of fuzzy set theory, disposing the tools for adequate consideration of psychological, legal and other methods for reducing corruption. A model has been developed that ensures localization of the risk of subjective preferences and favoritism of customers in the process of evaluation of bids of the participants of the open tender based on modern mathematical tools of fuzzy logic. Verification of the developed model reveals that it can be used to improve the objectivity of the evaluation of not just bids but also in the process of evaluating the criteria themselves – in particular, the bidder qualification criterion. Although the work with the suggested model requires the development of appropriate competencies from the customers, the use of the existing software allows to efficiently use the developed model, reducing time and labor-intensity of the evaluation of bids. In the long term, it ensures the improvement of objectivity for evaluation of bids and therefore localization of corruption risks in the field of public procurement.ᅟ 

References

[1] Baldi, S., Botasso, A., Conti, M., and Riccardo, C. 2016. To Bid or Not to Bid: That is the Question: Public Procurement, Project Complexity and Corruption. European Journal of Political Economy, 43: 89-106.
[2] Bayraktar, N., and Moreno-Dodson, B. 2015. How Can Public Spending Help you Grow? An Empirical Analysis for Developing Countries. Bulletin of Economic Research, 67 (1): 29-64.
[3] Belokrylova, O.S. 2015. Methods to Reduce the Risks of Corruption in Public Procurement System. Journal of Economic Regulation, 6 (4): 140-146.
[4] Belokrylova, O.S., and Gutselyuk, E.F. 2015. Economic Risks of the System of State and Municipal Procurement. Journal of Economic Regulation, 6 (4): 154-161.
[5] Bocharnikov, V., Sveshnikov, S., and Wozniak, S. 1999. Projected Commercial Calculations and Risk Analysis on Fuzzy for Excel. Kiev: Consulting firm ‘INEX’, 159 pp.
[6] Doroftei, I.M. 2016. Measuring Government Favouritism Objectively: The Case of Romanian Public Construction Sector. European Journal on Criminal Policy and Research, 22: 399-413.
[7] Kosko, B. 1994. Fuzzy Approximation Theorem. IEEE Transactions on Computers, 43 (11): 1329-1333.
[8] Kostikova, A.V. 2014. Development of Dynamic Fuzzy Models for the Analysis of Quality of Life: Author. dis cand. econ. Sciences. Volgograd State Technical University, Volgograd, 30 pp.
[9] Leonenkov, A. 2012. Fuzzy Modeling in MATLAB Environment and Fuzzytech. Saint-Petersburg: BHV-Petersburg, 736 pp.
[10] Mamdani, E.H., and Assilian, S. 1975. An Experiment in Linguistic Synthesis with Fuzzy Logic Controller. International Journal of Man Machine Studies, 7 (1): 1-13.
[11] Melnikov, V.V. 2015. Methods of Public Procurement and the Conditions of Their Regulation in Post-Soviet Russia. Novosibirsk: Publishing House of Novosibirsk State Technical University, 303 pp.
[12] Neu, D., Everett, J., and Rahaman, A.S. 2014. Preventing Corruption within Government Procurement: Constructing the Disciplined and Ethical Subject. Critical Perspectives on Accounting, 120: 157-168.
[13] Ostrovnaya, M., and Podkolzina, E. 2015. Antitrust Enforcement in Public Procurement: the Case of Russia. Journal of Competition Law & Economics, 11 (2): 331-352.
[14] Painter-Morland, M. 2011. Rethinking Responsible Agency in Corporations: Perspectives from Deleuze and Guattari. Journal of Business Ethics, 101 (1): 83-95.
[15] Shtovba, S.D. 2007. Introduction to the Theory of Fuzzy Sets and Fuzzy Logic. Available at: http://matlab.exponenta.ru/fuzzylogic/book1/index.php (accessed 06.06.2015)
[16] Torvinen, H., and Ulkuniemi, P. 2016. End-user Engagement within Innovative Public Procurement Practices: A Case-study on Public-private Partnership Procurement. Industrial Marketing Management, 58: 58-68.
[17] Vargas, G.A., and Schlutz, D. 2016. Opening Public Officials' Coffers: A Quantitative Analysis of the Impact of Financial Disclosure Regulation on National Corruption Levels. European Journal on Criminal Policy and Research, 22: 439-475.
[18] Yulek, M.A., and Taylor, T.K. 2012. Designing Public Procurement Policy in Developing Countries. New York: Springer, 268 pp.
[19] Zadeh, L. 1973. Outline of a New Approach to the Analysis of Complex Systems and Decision Processes. IEEE Transactions System Man Cybernet, 3: 28-44.
[20] Zadeh, L. 1976. The Concept of Linguistic Variable and Its Application to the Adoption of the Approximate Solutions. Moscow: Mir, 167 pp. 
Published
2017-08-20
How to Cite
BELOKRYLOV, Kirill Anatolievich; RUNOVA, Lidiya Pavlovna. Localization of Subjective Assessment Risks in the Public Procurement System Based on Fuzzy Logic. Journal of Advanced Research in Law and Economics, [S.l.], v. 8, n. 2, p. 411 - 417, aug. 2017. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/1318>. Date accessed: 20 apr. 2024.