Public procurement to pursue cohesion policy objectives (2018-2021)

Despite the importance of public procurement in achieving policy outcomes, many public authorities struggle to implement it in alignment with government's strategic objectives.

While implementing procurement strategically could create a stronger impact for countries' development, it requires a decision that goes beyond the cost-driven value for money (VfM) logic. Procurement processes are often overly focused on cost rather than broader social, environmental, and economic objectives, such as sustainability, promoting innovation or supporting small and medium-sized enterprises (SMEs). Barriers such as risk aversion, limited institutional capacity, and the failure to engage stakeholders early in the procurement process hinder the ability of contracting authorities to fully utilise public procurement’s potential. This narrow focus limits the ability to address current challenges, such as climate change, digital transformation, and economic disparities. 

There is a clear need for initiatives that ensure that public procurement is used as a lever to drive long-term sustainable growth and innovation.  It is essential that the significant amount of public funds allocated through public procurement are used effectively and efficiently to meet current and future societal needs.

This project is highly relevant to achieving broader EU, national, and regional goals. It supports EU Member States in ensuring that Cohesion Policy Funds are used more effectively, fostering sustainable growth, innovation, and social inclusion. By promoting the use of strategic public procurement, the OECD aims to help public authorities address environmental, social, and economic challenges while contributing to the green and digital transitions. Ultimately, the project enhances the effectiveness of public procurement across Europe, contributing to the achievement of broader economic and policy objectives, particularly in the context of regional cohesion and development.

The work carried out by the OECD consists in providing operational support and technical assistance to contracting and managing authorities in carrying out procurement processes in selected initiatives. The three components are:

• Identification of procurement initiatives in EU Member States which would highly benefit from strategic approaches.
• Selection of a representative sample of procurement initiatives and assistance to contracting and/or managing authorities to implement and promote strategic procurement procedures (or specific phase/part of the procedure); development of guidance & tools needed in order to implement strategic procurement and build relevant knowledge and skills.
• Summary of the experiences and lessons learned: Provision of recommendations and follow-up actions for further and wider promotion of strategic procurement for projects co-financed by ESI Funds under Operational programmes.

• Sterea Ellada Region (Greece) – Decontamination of Asopos River
  •  Guide – Designing an Infrastructure Procurement Strategy in 3 Steps
• Eastern Macedonia and Thrace Region (Greece) – Framework Agreements for Housing and Infrastructure
  • Handbook on Public Procurement Demand Aggregation and Framework Agreements: Developing strategies – Assessment of demand and supply
• Centro Region (Portugal) – Promotion of a Circular Economy
  • Video: Lessons Learned
  • Factsheet "Closing the loop: the power of circular procurement"
  • Briefing note on Criteria evaluation
  • Briefing note on Market Engagement
• Puglia Region (Italy) – Innovation in Wastewater Management
  • Video: Lessons Learned
  • Factsheet "Procuring innovation in water management"
  • Risk assessment tool
• Final Report - Mainstreaming Strategic Public Procurement to Advance Regional Development
• The Launch Event