Public procurement accounts for around 14% of the EU’s GDP, making it a significant lever for economic and social development (OECD, 2023). However, the potential of public procurement remains underutilised in driving strategic policy objectives, such as environmental sustainability, digital transformation, and social inclusion. Effective and strategic public procurement practices are critical to achieving optimal outcomes from these investments and aligning with the overarching objectives of a smarter, greener, and more inclusive Europe.
Promoting the Uptake of Strategic Public Procurement in European Union funded projects (2024-2026)
The Directorate for Public Governance at the OECD and the Directorate-General for Regional and Urban Policy (DG REGIO) of the European Commission are joining forces for the second time to advance the strategic use of public procurement. The project aims to improve the uptake of strategic public procurement (SPP) practices in EU Member States by reinforcing the skills and capacities of the institutions in the management of EU funds. It is building on the previous work that the OECD carried out with the financial support of DG REGIO.
Context
The challenge
There is a clear opportunity to transform procurement into a powerful tool for addressing societal priorities such as climate action, economic inclusion, and the green and digital transitions. By fostering strategic procurement practices and strengthening collaboration across stakeholders, the EU can maximise the impact of public investments and advance sustainable development goals.
The EU has made significant strides in promoting sustainable and strategic procurement practices. The 2014 EU public procurement directives [1] provide a framework for procuring in a more flexible and strategic way. The 2017 European Commission's Communication emphasised the role of public procurement in promoting strategic policy objectives of the EU.[2] The European Commission is now actively working on promoting green public procurement, innovation procurement and socially responsible public procurement through various initiatives. [3]
Yet, strategic procurement possibilities were not sufficiently used with most procurement procedures using the lowest price as the only award criterion. Further support is needed to unlock the full potential of public procurement to help achieve strategic objectives. Programme authorities often face challenges in implementation, including a cautious approach by contracting authorities. This risk-averse culture was also shown to slow down the adoption of innovative procurement strategies. Additionally, better coordination among Programme Authorities is needed to streamline processes and enhance efficiency.
[1] Directive 2014/23/EU (concessions), Directive 2014/24/EU (general) and Directive 2014/25/EU (utilities) were adopted.
Project relevance
The project builds on the OECD’s Pilot Action conducted between 2018 and 2021, which supported contracting authorities across Europe in sharpening the strategic focus of their procurement practices. By providing Programme Authorities with advanced tools and skills in strategic procurement, the project aims to expand on the lessons learned from the initial pilots and further enhance the capabilities of managing authorities, procurement professionals, and oversight bodies across the EU. Previous initiatives highlighted critical gaps in knowledge, collaboration, and the practical implementation of strategic procurement methods. This project addresses these challenges, equipping authorities to manage EU funds more effectively and deliver projects that advance the EU’s key priorities.
Project outputs and activities
- Develop an inception report based on a needs assessment of the Programme Authorities directly involved in the management of EU funds and make proposals for the way forward.
- Raise awareness and promote SPP through dissemination efforts such as developing promotional materials, implementing social media campaigns, creating communication packages, organising roadshows, and showcasing successful projects.
- Develop a toolbox on different aspects of strategic public procurement with a focus on raising awareness and providing advanced tools, particularly targeting EU Member States lacking national policies in this area.
- Develop a comprehensive model action plan to enhance the strategic public procurement capabilities of managing authorities.
- Provide support function for piloting the model action plan and using the toolbox.
- Support the establishment of ‘’communities of practice’’ and organise webinars or seminars on strategic public procurement to encourage peer learning.
- Draft a final report and organise a closing event.
If you are interested to learn more about the project, please reach out to us at: spp.ipp@oecd.org.
Funded by the European Union, and implemented by the OECD, in cooperation with the European Commission.
