Negative effects on SMEs’ success rates when framework agreements are used in bidding for public contracts

Abstract

IMPACT This article presents a critical analysis of the impact of public procurement rules on small and medium enterprises (SMEs), specifically focusing on framework agreements within the EU. Addressing procurement specialists, policy-makers, and public management professionals, the authors highlight how framework agreements, particularly in the IT sector in Spain, reduce SMEs’ chances of securing public contracts by 34%. The article speaks to practitioners at all levels of public procurement—especially those in policy development and implementation—offering valuable insights into the issues that jeopardize SME success in procurement competitions. The findings are crucial for those striving to balance administrative efficiency with fair market access for SMEs, thereby shaping a more competitive market landscape.