| Abstract: | Procurement is an essential business function of government. Despite the importance of effective procurement practices to government efficiency, very little is known about what local governments do in practice, and how procurement practices affect government spending. This paper reports the results of a survey on procurement practices used by New York State school districts. To examine the potential costs savings from adoption of particular procurement practices, the authors estimate cost models for materials, supplies, and equipment spending. Results from the cost model indicate that the use of competitive bidding, purchasing calendars, central warehouses, and bidders lists are associated with significant cost savings. |
