What is a Public Procurement and why is it important?

Introduction to Public Procurement

The European economy relies heavily on public procurement, which today is one of its fundamental pillars, and these markets offer companies a valuable way to increase their influence and diversify their activities. The definition of public procurement is quite simple, it is a formalised contract between a public entity, such as a local authority, a national or European government, and a private provider. The aim of this entity is to satisfy a specific need for goods, services or works. It is important for companies to understand the mechanisms that govern these markets so that they can take full advantage of them. Indeed, by effectively responding to these tenders, they can not only access stable revenue flows, but also strengthen their relations with government entities.

Access to European public procurement opens the door to a market as large as it is dynamic. According to the European Commission, these markets account for approximately 14% of the GDP of the European Union, or about EUR 1900 billion, which illustrates their significant weight in the regional economy and their importance to businesses. The operation of these tenders is highly regulated, with transparency and fairness at the heart of their operation in order to ensure rigorous and responsible management of public funds. For companies, these opportunities to participate in large-scale projects can serve as a springboard for their long-term development. It is essential for business leaders and managers in these markets to master these gears, in order to navigate effectively in this competitive process and to take full advantage of the opportunities resulting therefrom.

Understanding European Public Procurements

European public procurement is governed by a rigorous legislative framework that is essential to reap the full benefits. This framework, which is enshrined in well-established European directives, guarantees all stakeholders fundamental principles such as equal treatment, non-discrimination and transparency. These principles have been established to maintain confidence in the system, but they also ensure healthy and balanced competition among applicants.

European directives set out many key aspects of public procurement, including procurement, financial thresholds to be met and precise selection criteria. To take just one example, European Regulation No 2019/1780 sets thresholds which, when exceeded, require publication at European level in order to increase the scope and visibility of the project.

For greater clarity, European public procurement is generally divided into three main categories: supplies, services and works. The set of standards and regulations is specifically tailored to each category, since each set may, for example, require quality standards based on recognized standards such as ISO 9001 that may differ from one to another. In the case of works contracts, another example could be illustrated, since they often have to comply with strict safety and environmental sustainability regulations.

All these tendering standards are of course the same for everyone, ensuring fair competition so that all participants have an equal chance of winning the bid. If you want to position yourself as a serious candidate in the competitive arena of European public procurement, it is vital to understand these tendering procedures in order to effectively structure your proposal and comply with each regulatory requirement.

Why Public Procurement Are Crucial for Enterprises

Public procurement has many advantages and can be a key strategic lever for any company that wants to increase growth and diversify its revenue sources. In the current economic context, these markets not only offer remarkable opportunities to secure lucrative contracts, but they are also an excellent way to establish stable and credible recognition of public institutions.

In addition to offering new opportunities for companies, they can have a positive impact in the way companies operate by pushing them to raise their standards and optimize their business practices. This improvement stems from the need to meet strict selection criteria based on recognised standards, such as those described by the European Union for public tendering. By taking part in these opportunities, your company can significantly improve its internal processes on several aspects, whether in terms of quality, resource management or innovation.

The benefits do not end there, the direct financial aspects and operational improvement are complemented by the possibility of consolidating your position in your sector of activity. Indeed, a successful contractual relationship with a public entity can promote loyalty, offering you not only continuity of work but also strong references that can attract new customers. This type of partnership strengthens your reputation and offers you a nice showcase that can prove to be a considerable asset in the long term.

Adopting a proactive strategy to engage with these opportunities can therefore be a transformative approach for your company, anchoring your presence on a stable and sustainable basis.

How Public Procurement Work

Without going into too much detail, it is vital to understand how a European public procurement works overall if you want to participate effectively. This process involves several key steps, each of which plays a crucial role in the success or failure of your approach.

The first step is the publication of tenders. Public entities will clearly define their needs and set out all the criteria they consider useful to be met by the claimant. These publications can be found in several locations, either on national platforms in each country or on common EU platforms such as the TED (Tenders Electronic Daily), the European Union's public procurement portal.

These scattered platforms, which are rarely user-friendly, will cost you a considerable amount of time to navigate. It is for this purpose that Tendeurope helps you, by centralizing and simplifying your access to these offers to save you considerable time and not to miss potential opportunities for your business.

Next comes the submission of bids. You must ensure that your offer is not only competitive, but also fully compliant with the specified requirements. A sloppy or missing offer to essential elements, such as essential documents, can be costly to compromise your chances.

The next phase involves the selection of bidders. One might think that the choice will be based on the best value for money, and even if this is not entirely wrong, the evaluation criteria for this stage are multiple. The evaluation will also include the analysis of the technical and financial capabilities of the providers. Transparency and equal treatment are the guiding principles of the tendering process, so you can expect a fair choice from the organization concerned and if not, the possibility of asserting your rights.

Finally, once the selection has been made, the final point of the process is the award of the contract. At this stage, public entities select the supplier that best meets the established criteria.

Keep in mind, therefore, that your preparation and understanding of the public market can make a difference. A well-structured and well-informed response that meets the entire selection criteria is a mandatory condition if you want to have a chance to take advantage of the vast opportunities offered by European public procurement.

Practical Tips for Applying for a Public Procurement

A methodical and well-structured approach is a necessity for successful submission to a European public procurement. The application must be solid and to do so, it is crucial to understand in depth the evaluation criteria set out for tenders. Ensure that your response demonstrates in a tangible way how your proposal meets or exceeds these criteria.

Do not submit documentation without an organization; it must be comprehensive. Integrate customer testimonials, solid references, and concrete case studies demonstrating your experience and expertise into similar projects. If you have them, quality certificates or accreditations can enhance your credibility.

Do not neglect your communication either. Keep open, clear and proactive communication with the public client. Be clear in your answers to any questions or concerns, understand the questions of the entity and do not leave room for ambiguity.

Internally, it is often recommended to set up a team dedicated to the management of tenders, which has a wide range of expertise in technical writing, project management and compliance. Each member of this team should be trained to understand the nuances of the public procurement, to know how the European public procurement works and to be able to respond quickly to urgent requests.

By following these tips, you increase your chances of success, improve your ability to stand out in a competitive environment and position yourself as a reliable and competent partner in public procurement.

Conclusion

European public procurement has many advantages for businesses. They offer important opportunities for companies seeking to boost their growth and increase their competitiveness on the international scene. Guided by regulated and transparent procedures, these markets give companies privileged access to a multitude of public contracts in a variety of sectors, from construction to information technology and consulting services. It is crucial that companies adopt a well-informed strategy to take full advantage of these opportunities.

For successful active participation in public procurement, it is necessary to adopt a constant watch over tenders and a regular updating of your knowledge of European legislation and directives. It is equally important to understand the selection and award criteria specific to each procurement, as well as to improve your skills in bidding to meet specific requirements. Despite a competitive landscape, based on a targeted strategy, you can guarantee your company a strong positioning that will maximize your chances of success. Integrating these practices into your business process may well be the key to transforming these public procurement opportunities into sustainable growth levers for your business.