Public procurement

Public procurement is the process by which public authorities, such as government departments, local authorities or state-owned enterprises, buy goods or services from the private sector.

Public procurement rules ensure that public money is used properly when public authorities make purchases from the private sector.

How do governments award contracts to companies?

To prevent fraud, waste, corruption, or local protectionism, the laws of most countries regulate government procurement to some extent. Laws usually require the procuring authority to issue public (competitive) tenders when the value of the procurement exceeds a certain threshold.

The standard way of awarding contracts for goods to companies is through competitive tendering, which allows as many companies as possible to bid. Within competitive tendering, there are different types of public procurement procedures.

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