Fondef project that supports the design of complex tenders in Health and OOPP ends

The researchers from the MIPP Milenio Institute, Juan Escobar, Ronald Fischer and Sofía Correa, were part of the study and were present at the ceremony that took place in the Eloísa Díaz room of the Central House of the University of Chile.

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On April 26, the director of the MIPP Milenio Institute, Juan Escobar, and the academic of the Faculty of Economics and Business (FEN) of the University of Chile, Marcelo Olivares, announced the results of the FONDEF project “Application of Theory of Auctions and Market Design in the Design of Complex Tenders in the Health and Public Works Sectors”.

Juan Escobar, also an academic in Industrial Engineering at the University of Chile, was the director of this FONDEF project, and presented the results associated with Public Works tenders, while Marcelo Olivares, principal investigator of the project, presented the related results. . with drug tenders.

Carried out between January 2022 and December 2023, this research developed scientific and technological knowledge for its associated entities – General Directorate of Public Works (DGOP), Central Supply of the National Health Services System (CENABAST) and Open Contracting Partnership (OCP). ). )-, in order to design auctions that capture relevant characteristics of cost structures, market dynamics and supply needs.

This, specifically in public works tenders, as well as in the field of medicines. To this end, the researchers formulated two fundamental hypotheses:

1. That the application of auction theory allows us to identify opportunities to improve efficiency compared to current contracting mechanisms.
2. That the implementation of complex bidding processes requires technological development that reduces the transaction costs of the process. During the execution of the project, both hypotheses were validated.

Public Sector – Academia Collaboration

The project confirms that the application of auction theory can identify opportunities to improve efficiency in contracting mechanisms. It also underlines the need for technological advancements to effectively streamline bidding processes and reduce associated transaction costs.

Their results suggest the need to advance strategies to improve supplier participation, refine evaluation criteria and improve information management systems to optimize the results of public procurement.

It should be noted that the alternative director of this project was the MIPP Milenio Institute researcher, Ronald Fischer, and his main researcher, the MIPP researcher, Sofía Correa.

In addition, the team of this project is completed by Ian Malgarini, Leonel Huerta and Gonzalo Díaz, all part of the Center for Public Systems (CSP) of the Department of Industrial Engineering of the University of Chile.

More information about the project here