Competition in public procurement

Competition is essential to ensuring that public procurement delivers value for money, quality public services and resilient outcomes. Yet, in many economies, competition is under pressure, as reflected in single bidding, the use of non-competitive procedures and increasing supplier concentration. This policy brief examines the factors shaping competition in public procurement and how governments can foster effective competition throughout the procurement lifecycle. It explores how market analysis and engagement, procurement design, transparency, digitalisation, professionalisation and risk management help facilitate market access and supplier participation, while recognising that their effectiveness depends on market characteristics and procurement features. The brief sets out how governments can assess and strengthen competition by combining market and procurement indicators, supported by robust procurement data. Regular monitoring can help identify emerging risks such as supplier concentration and dependence, understand what is driving competition, and enable governments to adapt procurement policies and strategies to maintain open, competitive and resilient public procurement markets.