Public procurement a vehicle for change?

Abstract

In this chapter, we explore not only the challenges with public procurement, but also how public organization can turn procurement into a useful tool that can help develop quality in public services provision and delivery. There is a belief that public procurement can be an instrument for change. The public sector is a large procurer, and the idea is that if public procurers demand better products or new types of solutions, the market has no choice but to provide more environmentally and socially sustainable products. However, the public sector is not one single unit; the public sector consists of many different organizations each responsible for their own procurement. Consequently, each procuring entity has no advantage against larger suppliers or groups of suppliers on a market. Still, research shows potential for public procurement to be a useful tool for public sector organization to stimulate innovation and the development of new and improved products and services. When discussing public procurement, we draw on literature from business law as well as organizational theory.