Centralization vs. Bundling: The Victory of an Italian David against an Italian Goliath

Abstract

By drawing on the data and evidence related to a recent annulment, following the complaint of a small local SME, in an Italian administrative court of a large, limited-lots, tender published by the Italian largest Central Purchasing Body, we review the evidence for aggregation and bundling strategies of public procurement tenders in the light of the negative impact they generate on SME participation. We conclude by suggesting that an optimal strategy of centralization, which has several benefits, to survive requires limiting its bundling temptation.

Keywords

• centralization
• bundling
• sme
• lots
• central purchasing body
• procurement tenders