In Slovenia, public procurement is a key economic activity accounting for 13.7% of GDP and 27.6% of government expenditure. For this reason, Slovenia recognises public procurement as a strategic tool to support broader public policies and contribute to the country’s economic growth and recovery. Indeed, public procurement has a significant impact on the quality of services provided to citizens and on the economic and social development of countries.
To secure value for money in their public procurement processes, public buyers usually rely upon open and competitive bidding processes to ensure optimal participation from suppliers. However, many OECD countries, including Slovenia, experience difficulties in attracting an adequate number of suppliers in their public procurement procedures. In addition, several countries show a high rate in the use of non-competitive processes such as direct awards or negotiated procedures without prior publication.
Access to procurement opportunities is a key principle of a sound public procurement system. The 2015 OECD Recommendation on Public Procurement highlights that ensuring broad access to the public procurement market promotes competition and creates a level playing field and is thus essential for achieving value for money and for driving innovation, quality, and efficiency. A healthy level of competition provides benefits for both governments and businesses by stimulating economic productivity and SME development. Studies on the cost savings from increased competition in procurement markets conclude that rules and procedures that promote transparency and competition tend to reduce contractual prices substantially. A competitive environment can increase the trust of citizens and the private sector in the public procurement system, as it fosters integrity and reduces the risks of unfair market practices.
Creating a healthy competitive environment in public procurement has nonetheless proven difficult. Improving access and competition in public procurement requires a multi-pronged approach, encompassing a wide array of stakeholders and addressing multiple root causes.
This report analyses the root causes behind low supplier participation in public procurement opportunities, single bidding problems, and the high use of negotiated procedures without prior publication in Slovenia. Based on this analysis, it suggests measures to boost the level of competition in the public procurement market. This report was developed under the project “Increasing competition in the Slovenian public procurement system through promoting collaborative public procurement” and designed by Slovenia, the OECD and the European Commission (EC).
The project is part of the OECD work on strategic public procurement that helps governments design and implement policies that respond to today's societal, environmental and economic challenges, especially when it comes to creating sustainable growth and jobs. It also builds on the 2015 OECD Recommendation on Public Procurement. Data for the report were gathered through desk research of existing procurement practices in Slovenia, surveys of Slovenian contracting authorities and economic operators, interviews with key stakeholders, and data analysis of Slovenian’s procurement portals (e-JN and e-Narocanje).
The report was approved and declassified by the Public Governance Committee on 16 January 2025, and prepared for publication by the Secretariat.