The indicator tells form the relevant field of the award notice, if the procuring entity has applied or applies a procedure not launched by an open procurement call.
This indicator is contradictory to the prescriptions of the EU Public Procurement Directive or the Hungarian Public Procurement Law, but according to the authors is in line with a corrupt rent extraction logic, since contract awards are annulled and relaunched more often when there were multiple bidders .The indicator's value is set 0, if the contract was awarded in a non-annulled procedure and 1, if the contract was awarded in a procedure annulled, but relaunched. Both annulations by the procuring entities or courts are taken into consideration.
Not publishing the call for tenders in the official journal increases the probability of single received and valid bids and the winner’s contract share in every regression. Therefore the indicator's value is set 0, if the call for tender was published in official journal and 1, if no call for tender was published in official journal
Modifying call for tenders allows for excluding unwanted bidders by changing eligibility criteria once the interested bidders are known. Therefore the indicator's value is set 0, if call for tenders are NOT modified and 1, if call for tenders are modified.
According to the developers of CRI, contract modification(s) suggests that the procuring entity corruptly favour a well-connected company, potentially repeatedly. Therefore the indicator's values is set 0 if the contract was not modified during delivery and 1, if the contract was modified during delivery.
This numeric redflag-component is part of an index (CRI) that indicates risk risk of grand corruption. Developers rely on the scheme that in order to award the contract to a "specific" bidder, the procuring entity - if it could not deter all but one bidder from submissing bids - excludes the bids of all unwanted bidders on administrative or formal grounds or unfairly assesses the bids to favour a particular bidder. Therefore the value is set to 1, if 1 bid was NOT excluded, and 0, if more than 1 bid NOT excluded. Input indicators of the model, correlate with this output.
Single valid bid contracts make it easier for procuring entities to repeatedly award contracts to the same well-connected company, therefore the indicator's value is set 0, if at least two bids were not excluded and 1, if all but one bid excluded.
This numeric redflag-component is part of an index (CRI) that indicates risk risk of grand corruption. Developers rely on the scheme that in order to award the contract to a "specific" bidder, the procuring entity may alter circumstances (specifications) to have a single bidder during the bidding process. Therefore the value is set to 1, if 1 bid received, and 0 if more than 1 bid received during the bidding. Input indicators of the model, correlate with this output.
Single received bid contracts make it easier for issuers to repeatedly award contracts to the same well-connected company. The indicator's value is set 0 if more than one bid received and 1, if one bid received