Report: Developing public procurement requires proactive and comprehensive analysis

A recent report describes the most significant bottlenecks in public procurement and puts forward concrete proposals for measures to eliminate them. Its aim is to promote economically, socially and ecologically sustainable procurements and well-functioning markets.

The goal of public procurement is to provide contracting entities and their customers with suitable, functional and high-quality products and services. Contracting entities include central government authorities, municipalities and wellbeing services counties, for example. 

Wider societal expectations have also been placed on public procurement, including promotion of sustainable development and improved cost-effectiveness of services. There have been significant challenges in meeting these expectations. The different interests of contracting entities and tenderers have traditionally been considered to pose a challenge for successful procurement.

The results of the present study show that in development of public procurement, it is necessary to examine not only how successful the dialogue between the contracting entities and markets is, but also look at the issue more comprehensively. The report indicates that many bottlenecks encountered in public procurements are linked to underlying factors, such as perceptions and appreciation of procurements, resource allocation, competence, thinking models and the operating culture. Key bottlenecks identified in the report include strenuous processes related to public procurement, lack of competition and obstacles to innovation.

Solutions to bottlenecks

The report offers concrete proposals for measures to remove the most significant bottlenecks. The proposed measures focus on addressing the root causes of the bottlenecks. 

The following measures play a key role:

• managing and allocating resources to procurements
• utilising digitalisation
• improving tenderers' experience of participating in the tendering process 
• increasing the attractiveness of the public procurement market.

The study was carried out as part of the Procurement Finland action plan and as a measure of Procurements that Work thematic group. The study aims to promote discussion and offer new perspectives on the development of public procurement. The report can be used in the planning of development measures for national public procurement, for example.

Over 200 experts participated in the study in spring 2023. They represented tenderers, contracting entities and end users, i.e. customers.

Inquiries:
Riikka Hietanen, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 078
Tarja Sinivuori-Boldt, Senior Ministerial Adviser, Ministry of Finance tel. +358 295 530 433