Public procurement

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Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012.

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The COVID-19 crisis disrupted global supply chains, underscoring the need for agile procurement systems to ensure public service delivery, economic resilience, public safety, and citizens’ well-being.

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This second report reviews progress achieved since the publication of the 2019 report, while identifying key areas for further action to ensure Adherents continue to strengthen their public procurement systems and equip them for future challenges.

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The report integrates data and evidence collected through the Survey on Public Procurement conducted in 2024 to assess progress on the implementation of the Recommendation against its twelve principles and since the implementation of the previous edition of the survey in 2018.

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Lessons learned during the COVID-19 pandemic have not been thoroughly integrated into emergency procurement procedures to strengthen accountability mechanisms.

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Overview of developments Since the adoption of the Recommendation in 2015, the field of public procurement has undergone significant changes driven by economic, financial, social, and technological developments.

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The importance of promoting private sector integrity through government procurement practices was also recognised in the UN Convention Against Corruption Conference of States Parties Resolution 10/9 adopted in 2023 and in a number of recent bilateral and multilateral agreements, such as the Indo-Pacific Economic Framework for Prosperity Fair Economy Pillar which entered into force in 2024.

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The primary source of information for this Report is a dedicated survey (the survey on the OECD Recommendation on Public Procurement 2024, hereinafter “2024 Survey”), designed by the Secretariat and finalised in collaboration with LPP Bureau members, who provided feedback on a first draft version.

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The 2024 Survey was specifically tailored to capture the current state of implementation of the Recommendation, also focusing on its ongoing relevance in a rapidly evolving procurement landscape.

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The 2019 implementation Report presents data collected through a questionnaire which was conducted in 2018 amongst Adherents and certain non-Adherents.

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The 2019 implementation Report highlighted increased transparency as a significant advancement in public procurement practices across Adherents.

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In addition to collecting previously monitored information on the extent of transparency in public procurement, the 2024 Survey was expanded to include newer elements such as publication of key information on e-procurement systems.

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Notably, 98% (39 out of 40) of Respondents have requirements to publish tender announcements and mandate the publication of tender documents, 95% (38 out of 40) require notifications of award, and 78% (31 out of 40) disclose the awarded price.

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While contract amendments are required to be published by the majority of Respondents (29 out of 40, or 73%), only 30% (12 out of 40) have requirements to publish contract completion certificates.

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To maximise usability, Respondents reported publishing relevant documents in a machine-readable format (23) or, where data is dispersed, aggregating it into regular reports (6).

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The OpenProcurement.fi service, launched in 2017, provides public access to information on state and other public organisations’ procurement.

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These include small-value purchases (21 Respondents, or 53%), defense and national security-related procurement (29 Respondents, or 73%), uncompetitive procedures (11 Respondents, or 28%), and emergency procurement (13 Respondents, or 33%).

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Indeed, 39 out of 40 Respondents reported that SOEs are subject to publication requirements, with the exception of Iceland.

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However, for 93% of them, this objective is pursued as part of a broader procurement strategy, typically alongside other goals.

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Hungary’s Action Plan to increase competition in public procurement for 2023-2026 The Government of Hungary has taken several steps to address competition challenges in public procurement and increase access to procurement opportunities, in connection with the measures contained in its Recovery and Resilience Plan.

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In February 2022, the Government adopted Decree 63/2022, introducing specific measures targeted at reducing the rate of single-bid procurements.

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Nearly all Respondents (93%) have policies in place to support specific categories of businesses, such as SMEs, social enterprises, businesses with green certifications, women-owned businesses, or indigenous businesses, in accessing public procurement tenders.

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The 2019 implementation Report highlighted that, as of 2018, the majority of Respondents already had some measures to encourage SMEs’ participation, including through the use of e-procurement (88%), the division of contracts (82%), and joint bidding (69%).

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Research also suggests that the division of contracts into smaller lots, a key feature of the 2014 EU Public Procurement Directives, has mainly benefitted contracts below EUR 25,000 in value.

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Only 18% (7 out of 40) of Respondents carry out frequent debriefing sessions with suppliers after the tender process to offer insights into procurement and promote mutual understanding, while 25% (10 out of 40) only exceptionally do so.

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Mainstreamed use of centralised platforms is not new, as the 2019 implementation Report already noted that access to procurement opportunities was increasingly facilitated by centralised platforms and e-procurement systems.

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The use of most e-procurement functionalities has increased between 2018 and 2024, reflecting a growing trend towards comprehensive e-procurement solutions.

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Only 8% of Respondents have systems integrated with asset registries and beneficial ownership databases, 13% with enterprise resource planning, 23% with social security databases, and 20% with budgeting systems.

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KONEPS is linked with 227 external platforms or tools to share and retrieve information, allowing for greater efficiency and the broader use of procurement data.

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The Next-generation KONEPS Project, first launched in July 2021, will unify four additional data systems and integrate 25 other procurement platforms to KONEPS.

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Beginning in January 2023, contracting authorities are obliged to report monthly on payments made under public procurement contracts through the payments’ portal.

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Sector-specific CPBs are also common, with 50% of Respondents using them for health sector procurement and 30% for ICT-related6 procurement.

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In particular, 83% of Respondents (29 out of 35) finance the management of framework agreements or dynamic purchasing systems through the central/federal budget, while only 37% (13 out of 35) use user fees.

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Similarly, training activities are funded by the central/federal budget in 81% of Respondents (21 out of 26), compared to 31% (8 out of 26) using user fees.

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For example, while the majority of Respondents provide traditional support mechanisms, such as helpdesks (95%), automated notifications (83%), and responses to frequently asked questions (FAQs) (80%), only 43% have implemented a mobile version of their e-procurement system, despite increasing reliance on mobile platforms to perform professional tasks more conveniently and efficiently (Figure ).

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The platform, accessible via www.chilecompra.cl and its e-marketplace Mercado Público (www.mercadopublico.cl), enables real-time, digitalised procurement, fostering participation from micro and small enterprises, which constitute 90% of the suppliers registered on the system.

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These practices have seen a slight increase from 52% in 2018 to 55% in 2024 among countries that replied to both surveys.

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Although regular audits and performance evaluations are crucial to reviewing procurement performance within public financial management, only 35% of Respondents reported systematically conducting them to assess procurement effectiveness and efficiency.

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40% of Respondents stated carrying out occasional reviews or project-based evaluations, which may not provide a comprehensive assessment of procurement efficiency.

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To develop a procurement workforce having the capacity to continuously deliver value for money, Respondents are largely investing in professionalisation initiatives, as demonstrated by the increasing share of those who report introducing measures such as the creation of competency models and certification frameworks since 2018.

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38% of Respondents stated having a certification framework in place to recognise procurement as a separate professional discipline within the public sector, highlighting that this is not yet a common practice.

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Additionally, 55% of Respondents (22 out 40) indicated that a certification framework is under development or being considered.

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To obtain certification, candidates must pass a closed-book exam consisting of 50 single or multiple-choice questions within minutes, achieving a minimum score of 80% (40 correct answers).

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Less than half of them (42%) have a certification framework, but the rest are currently developing one or considering developing one, with the exception of Estonia (due to high administrative costs), New Zealand, and Sweden (that relies on certification frameworks provided by private entities).

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73% of the Respondents that have a competency model have also developed a certification framework and/or recognised public procurement as a specific profession.

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Notably, only 15% of Respondents reported offering competitive salaries, which are key to make public procurement an attractive and competitive career choice, given the complexity and the risks faced by the profession.

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While incentives to motivate procurement officials are implemented in approximately half of Respondents (21 out of 40, or 53%), they are mostly non-financial.

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Nearly all Respondents (38 out of 40, or 95%) reported having provisions in their regulatory frameworks to ensure that the private interests of public procurement officials do not inappropriately impact public procurement decisions.

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Similarly, the vast majority of Respondents (34 out of 40, or 85%) have provisions that establish the integrity principles for the public procurement workforce, by for example including and clearly explaining the principle of integrity in the code of conduct for public procurement officials.

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Slovakia’s 2023 Strategy for Combating Conflicts of Interest Slovakia is one of the Adherents that includes a specific definition of conflict of interest in its Public Procurement Act.

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To mitigate risks associated with public-private role shift, around half of Respondents (55%) reported having cooling-off periods for officials moving between sectors, which may be defined on a case-by-case basis (in 41% of Respondents that have such policies) or as a fixed period of time between 1 to 3 years on average (in 59% of cases).

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Most often bidders must declare this information either during their first supplier registration process (in 9 Respondents), every time they participate in a public procurement process (in 10 Respondents), only in certain procurements (in 6 Respondents), or upon request of the authorities (in 15 Respondents).

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Moreover, in 18 Respondents the information is shared systematically through information exchange with other government systems, such as the tax registry.

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In the end of 2019, an EU Directive on the protection of persons who report breaches of Union law (Whistleblowing Directive) entered into force.

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While more than a third of Respondents (40% or 16 out of 40) reported using data analytics to identify, analyse, and monitor integrity risks in public procurement, much fewer (10% or 4 out of 40) leverage emerging and innovative technologies such as artificial intelligence (AI) and blockchain.

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All 40 Respondents reported having ex post control measures, either internal or external, applied to public procurement procedures and systems as of 2024, while ex ante internal or external control measures exist in 88% of Respondents.

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Real-time audits on procurement processes exist in 19 Respondents (48%), but they are only common practice in 11 of them.

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Although the COVID-19 pandemic prompted countries to adopt special measures for emergency procurement, evidence suggests that Respondents may not have fully capitalised on this experience to strengthen the crisis preparedness of their procurement systems.

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Before the pandemic, most Respondents did not have a public procurement strategy as a part of crisis preparedness, but emergency procurement has gained prominence since 2020 (see Box 2.12 for a country example where emergency procurement was developed before the pandemic).

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Box 2.13 provides good practice examples from New Zealand and Norway, which illustrate how public procurement can be leveraged to advance climate-related and human rights considerations.

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Strategic use of public procurement across selected Adherents Using green public procurement in New Zealand The Government Procurement Rules in New Zealand set out the requirement to integrate environmental considerations in procurement procedures, across all levels of government and for all contracts that meet or exceed the value threshold of NZD 100 000.

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The Transparency Act applies to all companies that are registered in Norway meeting at least two of the three following conditions: more than 50 employees, an annual turnover exceeding NOK 70 million (approximately EUR 6 million) and a balance sheet exceeding NOK 35 million (approximately EUR 3 million).

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The most common incentives are networking and events (45% or 18), dedicated training courses (40% or 16), technical support to assist in procurement procedures (35% or 14), excellence award systems (25% or 10), dedicated funding (23% or 9), and performance-based bonuses (5% or 2).

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Those measuring the impact of such strategies do so mainly through assessing the number or share of procedures integrating such objectives (63% or 25 out of 40).

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Only 30% of the Respondents (12 out of 40) have developed a strategy specifically for managing public procurement risks.

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The score, ranging from 1 to 10, considers factors such as country-specific risks, as well as child labour reports, high level of informal employment, and other high-risk indicators.

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While regulatory and compliance risks (68%) are still the main focus of risk management strategies, economic and contextual risks (64%) as well as operational risks (57%) are gaining prominence.

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More than two thirds of the Respondents (73% or 29 out of 40) have developed at least one type of tool for managing public procurement risks, although there remain opportunities for improvement.

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Among the tools used by Respondents, the most common include risk assessment checklists (40% or 16) and red flag systems (35% or 14).

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Aware of the need to change working methods, in its 2020-22 Strategic Plan TdC identified the necessity to strengthen the use of risk analysis techniques at various levels of its audit activity, including strategy and priority setting as well as the planning of audits and other control actions.

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