Subcontracting Requirements and the Cost of Government Procurement

Benjamin Rosa

MPRA Paper from University Library of Munich, Germany

Abstract: Government procurement auctions can be subject to policies that specify, as a percentage of the total project, a subcontracting requirement for the utilization of historically disadvantaged firms. This paper studies how these subcontracting policies affect auction outcomes using administrative data from New Mexico’s Disadvantaged Business Enterprise (DBE) program. Through the use of a procurement auction model with endogenous subcontracting, I show that subcontracting requirements need not correspond to higher procurement costs – even when disadvantaged firms are more costly. I find small differences in procurement costs as a result of New Mexico’s current policy.

Keywords: Procurement; Subcontracting; DBE Goals (search for similar items in EconPapers)
JEL-codes: D44 H76 R42 (search for similar items in EconPapers)
Date: 2016-12-06
New Economics Papers: this item is included in nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/77392/1/MPRA_paper_77392.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/101697/1/MPRA_paper_101697.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/109517/1/MPRA_paper_109517.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/93900/1/MPRA_paper_93900.pdf revised version (application/pdf)

Related works:
Journal Article: Subcontracting requirements and the cost of government procurement (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:77392

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().