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Public Procurement: the public sector purchases on the market
Public Procurement: the public sector purchases on the market 
Procurement is the process by which the public sector goes to the market to purchase (procure) goods, services and works
All public sector entities irrespective of their function purchase through procurement (institutions, bodies, authorities, agencies, etc)
Procurement is used by public sector entities irrespective of the layer of governance in which they operate: national ministries, regional agencies, local authorities, and so on The monetary volume of “public procurement” is estimated to be approximately 20% of EU’s GDP (expenditure by general government and utilities on public works, goods and services in 2011 at 2.406 billion €)
The guiding principles of Public Procurement: transparency and fair competition
When purchasing in the “market”, the public sector uses procurement to invite offers that allow market participants to compete
By using public money, public procurement is about ensuring transparency and equal treatment
Public authorities use procurement to secure the highest quality (at the desired level described in the Call for Tender) of goods, services and works for the lowest price (i.e. the most convenient price for the purchase)
EU Public Procurement: EU institutions’ procurement of goods, services and works
European Institutions, bodies and agencies also launch procurement procedures to purchase goods, services and works that support the functioning of the institutions, the policy making and regulatory processes as well as the achievement of EU policy objectives
EU entities purchase goods, services and works not only in the territory of the EU, but also in third countries with which the EU has relations of international cooperation
A large number of EU entities launch procurement procedures: not only the Institutions, but also the Agencies of the EU invite market participants to provide offers
EU entities launching public procurement of goods, services and works
EU Institutions and their internal structures Commission (44 Directorate General and Services) Parliament Council European Investment Bank & European Investment Fund Court of Auditors
EU Bodies Committee of the Regions European Economic and Social Committee
EU Agencies Approximately 40 agencies (decentralised and executive agencies) complete the institutional framework of the EU. Each of those agencies purchase goods, services and procure works on the market through public procurement
How the EU buys on the market
When a EU institution or body requires goods, services and works in support of their functioning or in support of the implementation of EU policies, they revert to the market
For compliance with transparency and publicity requirements, EU institutions publish their procurement notices (Call for Tender) to alert the market about commercial opportunities
Types of Documents: different documents relate to specific steps in the tendering process
Prior Information Notice: pre-alerts the market of a forthcoming procurement opportunity. At EU level, a minimum of 30 days need to lapse between the PIN and the Contract Notice
Contract notice: invites market participants to the competitive bidding process by specifying the Technical Specifications of the goods and works or Terms of Reference of the services required
Contract award notice: informs the market that a contract has been awarded as a result of a competitive bidding procedure
Call for expressions of interest: alert potential providers of goods and/or services to express interest in supplying them in the future. The document sets requirements and invites potential suppliers to demonstrate their ability to meet those requirements to be included in suppliers’ lists
Two main procedures: open and restricted
Open Procedure: the contracting authority launches a tender to which all market participants are invited to participate according to the published Contract Notice
Restricted Procedure: also called the “two-stage” procedure, it involves a screening of potential bidders through a shortlisting process that is launched by a Call for Expression of Interest. The contracting authority short-lists those applicants who meet the requirement and invites them to tender.
Examples of business opportunities for SMEs: purchase of goods
SMEs can tap into the EU public procurement market for the widest range of goods that are purchased by EU institutions and bodies. Furniture, ICT, stationary and many other supplies are procured daily.
Examples of business opportunities for SMEs: services
EU procurement offers unique internationalization opportunities for service companies: irrespective of their size, SMEs can bid for the provision of different types of services, such as Media Monitoring, Cleaning Services, Consultancy / Technical assistance / Studies in different fields and sectors
Examples of business opportunities for SMEs: works
Works represent another opportunity for SMEs: in addition to large infrastructure projects, the EU procures also small works that can be provided by SMEs
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