A short submission period leaves less time hence make it harder for non-connected companies to bid successfully whereas a well-connected firm can use its inside knowledge to win repeatedly. This indicator counts number of days between publication of call for tenders and submission deadline. CRCB does not provide further clarification on the algorithm.
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.
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.
Exceptionally short decision periods may indicate rushed through decisions and the corresponding high corruption risks. Exceptionally long decision periods, however may signal multiple legal challenges and troubled decision making hence high corruption risk. The indicator takes into comsideration the number of working days between submission deadline and announcing contract award.
This indicator counts number of characters of the eligibility criteria MINUS average number of characters of the given market's eligibility criteria. It indicates risk if eligibility criteria less visible deters bidders [ie. this indicator implies correlation between "overspecification" and tailored tenders - e.g. according to the statistics criteria length above market average by 520-2639 characters 16 increases probability of a single received bid by 10.4%-11.9% and the winner’s share within issuer’s contracts by 1.3% compared to the shortest criteria-length group]
Every non-open procedure type carries a higher corruption risk than open procedures in terms of single received and valid bids and winner’s contract share. Therefore developers set the indicator's value 0 , if there is ano open procedure, 1, if there is an invitation procedure, 2, if there is a negotiation procedure, and 3, if there are other procedures (e.g. competitive dialogue). Indicator's value is 4, if procedure type is missing/erroneous.
Relatively expensive tender documentation makes bidding more expensive and hence deters bidders from bidding except for the wellconnected company which is close to certain of its succes. This is a ratio-indicator calculated between the price of tender documentation/contract value.
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