What is a
procurement
A procurement is when the public sector purchases goods, services, or construction works. This can range from buying office chairs to building a new school. The process follows specific rules to ensure fair competition and responsible use of public funds.
How does a procurement work?
When the public sector carries out a procurement, the process often begins with a contracting authority (for example, a municipality) creating a notice describing what they intend to buy. This is typically published on Doffin, which is the national database for public procurement.
A typical procurement process might look like this:
- The contracting authority describes their needs in the tender documentation
- They set qualification criteria that suppliers must meet
- They define award criteria that determine who wins the competition
- Suppliers submit their bids
- The best bid is selected, followed by a standstill period before the final contract conclusion
Different types of procurement
There are several ways to carry out a procurement. A common approach is to enter into a framework agreement, which is an agreement that allows multiple purchases over time. For example, a municipality might enter into a framework agreement for office supplies that lasts four years.
Another type is direct procurement, which can be used for smaller purchases below certain thresholds (threshold values). Here, the contracting authority can approach a preferred supplier directly without conducting a full competition.
Digital tools like Cobrief make it easier for suppliers to participate in public procurement by automating parts of the process and providing an overview of relevant opportunities.
At its core, a procurement is about ensuring that the public sector gets the best value for money while giving all suppliers a fair chance to compete for contracts. This drives both efficiency and innovation in the market.