Public procurement is the process through which public sector bodies—such as government institutions, agencies, municipalities, and other public entities—purchase goods, services, or works from external suppliers. It covers the entire lifecycle, from identifying needs and defining requirements to selecting suppliers and managing contracts. This procurement is regulated under specific public procurement laws and directives to ensure efficiency, transparency, and fairness in the use of public funds.
In the European Union, public procurement is governed by harmonized directives—most notably Directive 2014/24/EU—that establish rules around thresholds, procedures (open, restricted, negotiated, etc.), and core principles such as non-discrimination, equal treatment, and transparency. It plays a significant economic role, accounting for approximately 13.6 % of EU GDP as of 2023. Because of its scale and impact, public procurement is seen as a key tool for economic policy, including supporting innovation, sustainability, and market integration.
In practice, public procurement ensures that public entities can obtain necessary goods and services effectively while promoting competition and accountability. It helps safeguard integrity in public spending, encourages market participation by diverse suppliers, and supports policy goals such as environmental sustainability or social value. Well-managed procurement also contributes to better resource utilization and drives improvements in supplier performance and innovation.
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