The Effects of COVID-19 on Public Procurement: A Firm-Level Analysis

The COVID-19 pandemic was an unprecedented shock to public procurement processes worldwide. Italy's emergency needs led to a deep modification of procurement practices, including an extension of more rapid procedures such as direct awards, and perhaps altered competition relations between suppliers. This thesis discusses the impact of the COVID-19 pandemic on public procurement practices and competition rates in the Italian market, specifically on the medical consumables sector. By analyzing a rich data set covering tenders released between 2018 and 2022, the study compares procurement behavior before and after the pandemic. Particular areas of focus include differences in the choice of procurement methods (with specific reference to direct awards), changes in competition levels as indicated by discount rates, and change in firm conduct across size categories (Small and Medium Enterprises and Large firms). A difference-in-differences strategy is proposed to strengthen the empirical analysis by contrasting the health sector with a less affected control sector. Findings are anticipated to add to the broader knowledge regarding how emergency situations affect the efficiency-competition trade-off in public procurement processes, with implications for policymakers to inform the design of future crisis-response procurement models.