Why public procurement in Europe is broken: Pain points that are hurting businesses

Every year, public authorities across Europe spend over €2 trillion on goods, services, and works through public procurement processes (European Commission). For many companies, especially small and medium-sized businesses (SMEs), winning a public tender can mean stable revenue, new clients, and long-term growth.

However, despite its size and importance, the public procurement system in Europe is far from perfect. Companies often face frustrating obstacles like:

• Scattered tender announcements
• Complicated paperwork
• Constant last-minute changes
• Tough competition favoring larger firms

These challenges don’t just waste time, they also cost companies real business opportunities.

In this blog post, we’ll explore why public procurement in Europe feels “broken” from a business point of view.

More importantly, you’ll learn what pain points to expect and how Tendify can help you win more government contracts.

Let’s start by looking at one of the biggest problems companies encounter: fragmentation.

One of the biggest problems companies face when trying to apply for public tenders in Europe is fragmentation.

Even though the European Union has rules that try to harmonize public procurement (like the EU Procurement Directives), each country still runs its own system — and often, multiple systems inside one country.

Instead of finding all tenders in one place, companies must deal with:

• National tender portals (for example, France’s Marchés Publics or Germany’s Bund.de)
• Regional or sector-specific platforms (such as platforms for healthcare tenders, municipal projects, or transport)
• Tenders Electronic Daily (TED) — the EU’s official portal for tenders above a certain value (€143,000 for services and supplies in most cases), but not every tender appears there.

Because of this fragmentation:

• Companies need to check multiple websites every day to make sure they don’t miss a new opportunity.
• Many portals operate only in the national language, making it even harder for non-local companies to understand requirements.
• Some tenders are advertised only locally to avoid attracting too much competition, even if it technically goes against the spirit of EU rules.

And finding tenders is only part of the challenge. Even when companies manage to track down opportunities, they often face another frustrating problem: lack of true transparency.

Let’s take a closer look.

The European Union has strong rules about fairness and transparency in public procurement.

In theory, companies should have equal access to information about tenders and clear reasons when contracts are awarded.

In reality, though, many businesses feel left in the dark.

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Here’s why transparency often breaks down:

• Incomplete tender listings - while major tenders must be published on Tenders Electronic Daily (TED), smaller contracts (below EU thresholds) often appear only on national or local platforms — or not at all.
• Unclear award criteria - tender documents sometimes describe how bids will be evaluated in very general terms (“best value for money” without clear scoring details).
• Frequent changes without proper updates - deadlines get extended or requirements change, but not all platforms notify registered companies properly.
• Limited feedback after tender decisions - losing bidders often receive very basic feedback like “your bid was not the most economically advantageous,” without details on what they could improve.

But transparency isn’t the only issue. Even if you find a tender and understand the requirements, there’s still another major hurdle to overcome: the heavy administrative burden.

Let’s explore that next.

Winning a public tender in Europe is rarely just about offering the best service or the best price.

It’s also about navigating a sea of documents, forms, and compliance checks — and this administrative burden can be overwhelming, especially for smaller companies.

Here’s where the complexity comes in:

• Different documentation requirements - each country — and sometimes each buyer — can ask for different documents like financial statements, technical certifications, environmental declarations, or proof of tax compliance.
• Extensive formalities for eligibility - companies often need to submit forms like the European Single Procurement Document (ESPD), declarations of honor, or criminal record certificates — sometimes notarized.
• No standard submission processes - in some countries, tenders must be submitted through national e-procurement systems; in others, it might be via email or physical delivery — each with different encryption or signature rules.
• Language barriers - tender submissions often must be in the local language, even if the company is from another EU country. Hiring translators or local partners becomes an extra cost.

And for smaller companies, the difficulties don’t end there. Next, we’ll look at how these challenges create an unfair advantage for bigger firms — and what that means for your business.

Public procurement in Europe is supposed to be open and fair for all companies — large and small, experienced or new, right?

However, in reality, larger firms have a clear advantage when competing for public contracts.

Here’s why smaller companies and newcomers often struggle:

• Resources to handle paperwork - big companies often have dedicated bid teams who focus only on tendering. On the other hand, SMEs usually rely on managers or owners who must juggle tendering with daily operations.
• Experience and references matter - public buyers tend to favor companies that already have similar projects completed. For newcomers, it’s difficult to build a strong tender history without first winning a few contracts — creating a catch-22 situation.
• Financial strength requirements - many tenders require proof of high annual turnover, insurance coverage, or financial reserves that small businesses may not meet easily.
• High costs of participation - preparing a strong tender takes time, legal advice, technical expertise, and translations — all of which cost money, whether the bid is successful or not.

Finally, let’s look at the bigger picture. All these barriers don’t just hurt companies individually — they weaken public procurement itself, reducing competition and innovation. Let’s explore why.

When small businesses and new players are pushed out of public procurement, everyone loses — not just the companies, but also governments and citizens.

Here’s why it matters:

• Reduced competition - fewer bidders means higher prices and lower quality outcomes for public projects. Buyers may feel forced to work with the “usual suspects” — a small circle of large suppliers.
• Lost innovation - many new technologies, creative solutions, and modern approaches come from smaller, more agile businesses. When these companies are blocked, public services risk becoming outdated and inefficient.
• Wasted public money - lack of competition often leads to overpriced contracts. A 2017 study by the European Commission found that 5-20% of procurement spending could be saved through better competition (Source).
• Discouragement of future participation - when companies spend time and money preparing bids, only to be shut out without real feedback, many choose never to participate again.

Now that we understand the key problems with public procurement in Europe, let’s quickly summarize what you, as a company, can take away — and how you can be better prepared for the challenges ahead.

Let’s move to the conclusion.

Public procurement in Europe offers huge opportunities — but it also comes with real challenges.

From fragmented tender listings to heavy paperwork and an uneven playing field, companies that want to succeed must be prepared, strategic, and resilient.

Here’s what you should keep in mind:

• Expect complexity - finding the right tenders will require research across multiple platforms and possibly different languages.
• Prepare for paperwork - streamline your document management internally so you can respond faster when opportunities arise.
• Be realistic about competition - larger firms may have advantages, but SMEs can win tenders by focusing on niche expertise, agility, and partnerships.
• Stay motivated - not every bid will be a success, but every experience will sharpen your skills for future tenders.

While public procurement is far from perfect today, understanding its flaws helps you work around them — and sometimes, even turn them into your advantage.

If you’re tired of wasting time searching through dozens of portals and missing valuable opportunities, Tendify can help.

Tendify offers a smart tender monitoring platform that gathers tenders from across Europe in one place — saving you hours of manual work every week.

With Tendify, you can:

• Access thousands of tenders across different sectors and countries
• Set personalized alerts so you never miss a relevant opportunity
• Focus your time on bidding, not searching