Public Procurement Procedures Research Articles

Innovative public procurement policy failure: a case analysis from Poland

Objectives: The rising popularity of innovation public procurement (IPP) sets a question about conditions as an effective tool of transformative policies, including the governance level, coordination and strategic development. The purpose of the article is to explore the failure of governance in a Polish IPP to present how IPP guidelines are implemented empirically. The other contributions refer to merging DARPA’s approach and IPP. Research Design & Methods: The research article presents conclusions from the case study of first large-scale trial of public procurement procedure with respect to an innovative partnership in Poland. Findings: The case is a rarely analyzed example of policy failure and shows that ignoring stakeholders’ needs, timeline constrains and market capacity can result in policy failure. Program history highlights that proper risk analysis and adaptation to the market context can prevent program failure. Implications / Recommendations: The article opens up a field for considering what steps are crucial in formulating IPP. The analysis leads to the main conclusion that transformative policy frameworks using demand- pull tools need to be embedded in the market realities and capabilities of national innovation systems. Article classification: research article

Ghosts in the Machine: How Big Data Analytics Can Be Used to Strengthen Online Public Procurement Accountability

The core of sustainable public procurement lies in its ability to stem uneconomical public expenditures that waste taxpayer money and stifle social trust and development. The external audit of public procurement proves problematic since current research fails to provide sufficient empirical studies aimed at identifying procurement fraud. The development of online portals with embedded e-procurement solutions, along with the big data revolution, open new horizons and allow us to reveal trends otherwise impossible to spot, such as transactions achieved in an exclusive commercial relationship, in which a vendor engages only with a single public entity. By using innovative data acquisition techniques, our research encompasses 2.25 million online direct public procurement procedures conducted in 2023 using the Romanian portal for public procurement, totaling EUR 3.22 billion. By aggregating databases obtained from various public sources, our analysis achieved remarkable granularity, using over 112 million data elements—50 pertaining to each transaction. Research results indicate a unique sub-population of public procurement procedures—those conducted with “in-house” vendors totaling 14.28% of all direct public acquisitions and which is significantly differentiated along the entire list of analyzed criteria—financial, geographical, statistical, or risk-wise—illustrating a troubling phenomenon: possible gerrymandering of the online public procurement landscape, which, at least in theory, resembles a perfect market, by cultivating preferential commercial relations, thus affecting the legality, regularity, and economical aspects of public procurement.

CHALLENGES IMPEDING THE ADOPTION OF E-PROCUREMENT BY PUBLIC SECTOR ORGANISATIONS (MINISTRIES, DEPARTMENTS AND AGENCIES) IN SIERRA LEONE – A SURVEY

The introduction and adoption of public procurement and e-procurement processes as recommended by donor organisations for governments of developing and/or under-developed countries has not achieved the intended objective of value for money. The human and material resources poured into building the capacities of countries like Sierra Leone could be considered as one of the steps of achieving the milestone i.e. value for money. The objective of this study is to examine the factors affecting e-procurement in organizations taking into consideration three factors including the value of e-procurement, e-procurement capability and e-procurement models. Data was collected through the use of a questionnaire targeted at procurement practitioners and Specialists and Heads of government ministries, departments and agencies using convenience sampling which is one of the methods of non-probability sampling. Descriptive statistical analysis techniques were employed for data analysis. Findings from the study revealed that a vast majority of the respondents believe that inadequate or limited capacity, credit facility or credibility and rigid laid-down rules of public procurement procedures and processes are the impediments responsible for the adoption and implementation of e-procurement in Sierra Leone. The paper recommends that the Government of Sierra Leone should put the necessary ICT infrastructure in place, review the current procurement act and adopt the implementation of e-procurement in order to achieve value for money.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0787/a.php" alt="Hit counter" /></p>

Economic and legal responsibility for anti-competitive collected actions in the form of correction of the results of tender, bids, auctions, competitions as a manifestation of collected behavior of procurement participants

The article is devoted to consideration of the issue of coordinated behavior of participants and customers of public procurement. The need to observe the principles of competition in the public procurement procedure is substantiated. The key point in conducting procurement is compliance with the conditions of competitive selection of the procurement winner, elimination of the possibility of victory of the "necessary” participants and overcoming corruption and speculation. Regulation of public procurement mechanisms is a combination of economic and legal and administrative legal aspects. Relations that arise in the process of procurement have different aspects of legal regulation, as well as the subjects of offenses in this area can be both business entities and bodies of state power, local self-government, management and control. It has been proven that public procurement involves a competitive selection of the winner, in compliance with all other procurement principles stipulated by the Law of Ukraine "On Public Procurement”. It was emphasized that the main purpose of the Law "On Public Procurement” is to ensure effective and transparent procurement, create a competitive environment in the field of public procurement, prevent corruption and develop fair competition. Public institutions must make purchases in accordance with special requirements of confidentiality and security, as well as taking into account national interests. It is argued that today the field of public procurement is quite corrupt, and many cases of violations of the main basic principles of the Law have been recorded, which leads to the distortion of the results of tenders, trades, and auctions. Distortion occurs due to the concerted behavior of procurement participants, or participants and customers. That is, concerted actions can be vertical and horizontal, mixed and conglomerate actions can also take place. Any concerted behavior during public procurement violates the terms of competition, is prohibited and entails liability in accordance with the legislation of Ukraine. The article emphasizes that proving collusion in procurement and actually bringing violators to justice is a complex issue that requires improvement both from the point of view of theoretical points and procedural aspects. Of course, the state is interested in ensuring transparent implementation of public procurement, and this can be achieved thanks to the introduction of a clear mechanism to overcome the corruption component. It is argued that regulation and control by state bodies play an important role in this institute. The state acts as a special customer, which is an expression of public interests. The use of such a legal instrument as public procurement of goods, works and services gives the state the right to choose business entities that will fulfill the state order on the most favorable market terms, on the basis of compliance with the terms of competition. Unfortunately, it is not always possible to observe honest and fair procurement.
 Attention was drawn to the fact that overcoming a large number of conspiracies in the field of public procurement and ensuring compliance with the principles of fair competition during procurement is one of the tasks of the Antimonopoly Committee of Ukraine, as a public procurement appeals body. However, issues of combating and implementing effective mechanisms to prevent the occurrence of collusion between public procurement entities and, as a consequence, procedural aspects regarding appeals and prosecution of offenders for concerted actions that led to the distortion of the results of tenders (tenders) remain problematic.

Considerations on the restrictive nature of certain tender requirements in public procurement procedures for construction works contracts

The public procurement landscape in Romania, much like its European counterparts, is governed by stringent directives and principles that strive to ensure transparency, equal treatment, and fairness in awarding contracts. Yet, a notable trend has emerged among contracting authorities in Romania: the establishment of restrictive requirements in tender documentation, particularly concerning construction works contracts. This article, informed by the European and Romanian legal frameworks, delves into these requirements, their implications for potential contractors, and the overarching need to balance specific experience criteria with the broader principles of inclusivity and competition.

Contract management of municipal public services: the Slovak experience

Contracting out services in the public sector should convey efficiency gains compared to the in-house delivery of these services because of the competition element. However, results from practice do not confirm this assumption. Generalising the reasons for this situation is still problematic, but there is no doubt that the quality of managing the processes of contracting out of public services should be the factor. The aim of this paper is to contribute to the discussion on contract management in the public sector by analysing the quality of contract management in Slovak municipalities in the context of contracting out risks as defined by the principal-agent theory. The study uses own methodological approach for quantifying the determinants of the quality of contract management in relation to the contracting out risks using Saaty’s expert method. In total, 7 variables were constructed, and 3416 contracts are evaluated. Similarly to most existing studies, the results indicate severe problems in the quality of contract management in municipal sector, which increase the risks associated with contracting out. The most prevalent reserves in the quality of contract management of contracted local public and ancillary services in the Slovak municipal conditions are related to the selection of the public procurement procedure; the irregular monitoring of the quality of external production; and the type of payment. The outcomes clearly show that potential increases in efficiency via contracting out are unequivocally limited by the low quality of contract management.

Public Procurement Rules and the Prevention of Corruption

The article points out the difficulties of defining the phenomenon of corruption, the main risks of public procurement related to the occurrence of corrupt behaviour, and the role of the proper application of public procurement rules as tools for the prevention of corruption. This is because these principles are a guide for the contracting authority on how to take certain actions during the procedure, and which ones to avoid in order to ensure that the public procurement procedure is carried out in a lawful manner and that public funds are spent in an efficient and reasonable manner. Where discretionary slack exists, this is an indicator of the proper use of the discretion left to the contracting authority. The risk of corruption in public procurement is mainly due to the fact that significant public funds are spent in the course of public procurement, and the risk of bribery or collusion in tendering exists, regardless of the stage of the procedure.

Analysing the efficiency of public procurement procedures using game-theory models

Subject. Public procurement plays an important role in providing public services and ensuring that the target programmes of government structures are implemented. Therefore, it is crucial to improve the efficiency of procurement procedures. The efficiency of public procurement is largely determined by the conditions and format of the procurement procedure. So, it is of particular interest to identify the factors influencing the customer’s choice of the optimal procedure for the procurement of different types of goods, as well as to assess the impact of these factors on the effectiveness of existing procedures.Objectives. The aim of the study was to develop a model for selecting procurement procedures for different types of goods and to assess the effectiveness of current public procurement procedures.Methodology. In the study, we used the findings of auction theory, qualitative and quantitative analysis techniques to identify public procurement, determine its value to participants, and assess its effectiveness. The following goods were selected for empirical assessment: paper, medicines, automotive components, and construction services. The empirical basis of the study was the data obtained from the Unified Information System (UIS) in Procurement website.Results. We developed and estimated a model for choosing a supplier selection procedure (for empirical assessment, the probability of choosing a certain procedure was determined by the number of uses of the procedures among completed procurement procedures). We also designed and estimated a model of price effectiveness for public procurement procedures that are actually in use (price effectiveness in this study means the final price of the contract, as well as the reduction of the final price against the initial maximum price).Conclusions. Based on the analysis, we concluded that it is necessary to introduce negotiations as an intermediate procedure between the auction and procurement from a single supplier. Such a procedure is used in other countries. The auction procedure fails to provide the best quality goods, especially in the case of complex goods or services with a high level of uncertainty. For simple goods, an auction is the most favoured procedure under the conditions of high competition and a preference for quality. It allows selecting the most experienced and financially reliable supplier.

Promoting local food systems through public procurement in the European Union

An attempt is made in this article to determine the possible role of strategic public procurement in the promotion of local food systems. The question asked is whether the principles of competition law that regulates the EU’s single market, fully applied in the framework of public procurement, stand in confrontation with the promotion of local food systems. It has been shown that local food systems can be a valid strategical clause included in public procurement procedures, as they enhance various social and environmental general interests that provide consumer’s welfare by improving competition. The local food clause should be defined in the public procurement procedures without reference to a specific administrative territory, whether national or regional and be proportional and suitable to secure the attainment of the general interests’ objectives.

Prividna jednostepenost postupka javnih nabavki – Ustavni sud opet u ulozi „pozitivnog zakonodavca“

The Constitutional Court recognized the constitutional appeal applicant’s right to submit an extraordinary legal remedy in the administrative dispute (judicial review procedure) – a request for reassessment of a court decision (legal remedy submitted to the Supreme Court against the decision of the Administrative Court) in the field of public procurement. One situation in which submission of this legal remedy is permitted is in matters where an administrative appeal was excluded. The Constitutional Court took the position that a request for the protection of rights, which is a regular legal remedy in the public procurement procedure, cannot be compared to the appeal in the administrative proceedings, and that, hence, filing request for reassessment of a court decision is permitted in the public procurement procedure. The Constitutional Court thus made a creative interpretative decision, which created a new legal rule. The paper examines the effects and correctness of the aforementioned decision of the Constitutional Court.

Procurement in Times of Crisis: The Portuguese Experience

Since 2020, Portugal has enacted legislation specific to addressing the SARS-CoV-2 pandemic, with two distinct moments in this process: one dedicated to the pandemic situation in particular and a more recent one, connected with European funding and its implementation, various energy crises, and effects of economic warfare. As regards the complex and intricately entangled Covid-19 legislation, swift public procurement procedures were established to comply with certain requirements to guarantee competition, since the pandemic constituted an abnormal and unforeseeable circumstance that did not fit into the forecast of urgency provided for in the Directives. Legislation was issued on the modification of long-term contracts, yet with presented a highly debatable solution for the changes’ implementation and prohibiting the use of pecuniary compensation. While that legislation has since been repealed, transitory rules and exceptions whose scope is still difficult to understand in full took its place – in the main, the current special legislation on public procurement, Law 30/2021, intended for executing the implementation plan for projects financed or co-financed by European funds, which contains several rules that deviate from the regime resulting from the European directives, plus re-establishment of monitoring by the Court of Auditors, creation of an Independent Commission for supervising the implementation of the associated legislation, and the passing of extraordinary price‑revision legislation. The paper presents a brief report on this Portuguese legislative context and on the respective monitoring by both jurisdiction-linked and non‑jurisdiction-associated bodies. It directs special attention to the difficulties and perplexities raised by the regimes involved.

Green public procurement and sustainable development: the case of social welfare centres from the Łódź Province in Poland

The aim of the article is to discuss the issue of green public procurement in the context of public contract award procedures applied by social welfare centres from the Łódź Province (voivodeship) in Poland. The topic is set against the backdrop of the existing theories of green public procurement, a circular economy and sustainable development. The author applies the case study method, analytical methods, inference-based methods, source document study and literature review.
 The author explores the hypothesis that social welfare centres in the Łódź Province are reluctant to apply the green public procurement (GPP) approach or use environmental (GPP) criteria to evaluate tenders submitted by economic operators under the public procurement procedure. The study focuses on notices published by social welfare centres from the Łódź Province in the Public Procurement Bulletin from 1 January 2023 to 30 September 2023.
 The examination of 20 contract award procedures revealed that environmental aspects were mentioned in 2 tenders. It is noteworthy that both tenders referred to passenger transport services procured by the same social welfare centre. The results of the analysis corroborate the hypothesis that GPP was used to a limited extent. Therefore, public authorities should undertake measures to promote green public procurement as compatible with the concept of sustainable development.

INTERPRETATION OF THE SUBJECT CHANGE OF PUBLIC PROCUREMENT CONTRACTS BASED ON SUCCESSION THROUGH JUDGMENT NO C-461/20 OF THE COURT OF JUSTICE OF THE EUROPEAN UNION

During the performance of public procurement contracts such circumstances may arise that require modification of the original conditions. The freedom of classical public law contracts may not predominate as a result of the European Union directive regulations, since it is a basic requirement that the contract be fulfilled within the conditions of the original tender announcer and the offer, however the possibility of amending the contract must be ensured in cases where it is necessary. The question of the change of subject may be mentioned as a particular case. The Court of Justice of the European Union in its decision, case no C-461/20 examined the question of the change of subject arising from legal succession and examined the framework for the interpretation of the directive conditions, with regards of the context and without questioning other non-codified conditions. Based on the judgment, further issues such as the general theoretical foundations of the contract amendment, the relations between the change of subject and the contract amendment, the deviations from other directive cases due to the change of subject, the necessity of a new public procurement procedure and the unlawful omission of the public procurement procedure, may be investigated. Contract amendment options regulated in European Union directives like the above-mentioned C-461/20 of the Court of Justice of the European Union raise many questions of legal interpretation. The study analyses the legal basis that provides the possibility of subject change based on legal succession, going beyond the framework of traditional legal case analysis, comparing it with other legal bases for amending contracts, contrasting the arguments in the judgment, and relying on other relevant court decisions.

PUBLIC PROCUREMENT MANAGEMENT IN THE CONTEXT OF ROMANIA LEGISLATION: CHALLENGES AND PERSPECTIVES

The purpose of this article is to bring to public attention the view of managers from Romanian state organizations on the potential risks related to public procurement procedures, in the current context of the legislative framework. The research aims to identify and gain a deep understanding of the concerns, challenges and obstacles these professionals face in the procurement process, which is often complicated and subject to rigorous scrutiny. The purpose of the article is to provide recommendations based on the data collected, which will contribute to the improvement of the risk management framework in public procurement and to increase the awareness and training of managers to face the challenges in this field. In this way, the aim is not only a better understanding of the current landscape, but also the facilitation of possible legislative or procedural developments that increase efficiency and Clarity and openness in the public procurement process in Romania.

Restricting freedom of contract – the EU foreign subsidies regulation and its consequences for public procurement

PurposeThe purpose of this paper is to analyze the recently enacted Regulation (EU) 2022/2560 of the European Parliament and of the Council of December 14, 2022, on foreign subsidies distorting the internal market (foreign subsidies regulation [FSR]) and its repercussions on the European Union (EU) public procurement marketplace and corporations from third countries. The purpose of this paper is to analyze the geopolitical and economic backgrounds for the Regulation and its efficiency.Design/methodology/approachIn this study, the authors used doctrinal and analytical legal methodologies, meticulously examining pertinent EU law sources. The authors systematically collated and scrutinized applicable literature and legislative process materials to discern the essence and substance of the norms enshrined in the law. In this study, the authors also applied a socio-legal methodology when focusing on the economic and geopolitical context surrounding the adoption of the FSR. The contextual analysis traces the evolution of changes in international cooperation and recent political shifts.FindingsImplementing the FSR should pave the way for a more equitable competitive landscape within the EU public procurement market, bolstering EU values. However, its potential to prolong public procurement procedures and create uncertainties regarding their outcomes could pose challenges, possibly affecting the effectiveness of public procurement regulations. Only time will reveal the extent of the EU’s interventionist approach and how necessary adjustments must be made to align with market demands.Social implicationsThis study highlights socially relevant aspects of the implementation of EU policies – European New Green Deal and European Industrial Policy in the context of public procurement. The analysis contained in this study concerns issues directly related to meeting the collective needs of the citizens.Originality/valueTo the best of the authors’ knowledge, this study is the first in-depth analysis of the solutions contained in the FSR in terms of geopolitical and economic aspects. Furthermore, there have been no studies so far, which have analyzed the FSR in detail from the point of view of its effectiveness. The effectiveness concept contained in this study is the authors’ own solution.

Legal Aspects of the Evaluation of Tenders in Public Procurement Procedures in the Polish Mining Industry

Public procurement procedures facilitate the purchase of products, services, or civil works by public administrations. In Poland, they follow the national rules specified in the Public Procurement Act. Public procurement aims to ensure a transparent and competitive purchasing process, effective use of public resources, equal treatment of all tenderers, and supply of the best products and services. Various aspects of tender evaluation often determine public procurement and the actual process. Of fundamental importance are price and quality. The Polish mining industry is very mature and includes many stakeholders, such as underground, surface, and borehole mines. Public procurement in the mining industry is specialised and involves complex contracts between the contracting authority and the contractor. Additionally, the mining industry involves very high-risk levels and requires special safety efforts. Therefore, this article presents the analysis results related to evaluating offers in public tenders in the most prominent Polish enterprises of the mining industry. The results indicated what procedures should be carried out and what offer evaluation criteria are essential. The emphasis was placed on ensuring that the selection of offers in this industry are not based only on one criterion: price.

Public food procurement as a tool for more sustainable and high quality food offer in public institutions

Abstract As children spend almost a third of their day in kindergarten or school and consume a large part of their daily energy intake in educational environments, those environments are important factors in the development of healthy eating habits at one hand or unhealthy ones with possible consequence of childhood obesity on the other. Strong evidence of the importance of access to healthy and balanced nutrition in schools for children's health is available, and a nutritionally regulated school environment is associated with a lower risk of childhood obesity, which can also be facilitated by a transparent and quality-oriented procurement system. JRC has estimated the value of the European social food service market as sizeable in both reach and force of €82 billion. Progressive and targeted public procurement of food for health can reward food business operators who provide nutritionally balanced meals. According to the EU AP on childhood obesity 2014-2020, action such as use of nutritional criteria in food service procurement should be required in schools and kindergartens. JA Best-ReMaP situation analyses showed that current implementation of public food procurement across EU Member States differs substantially. Project activities aimed to support the establishment of the intersectoral working mechanisms (groups) for the public procurement of foods in participating MSs, to increase the understanding, knowledge and skills regarding public procurement of food/food products in public health and other selected public institutions, to pilot Slovene best practice tool for PFP as optional approach for implementation of the sustainable and high quality PFP procedures and to recommend further institutionalised implementation of the public procurement procedure for foods, based on quality standards, in the Member States and propose minimum criteria for sustainable public procurement, in line with the developments at the European Commission level.

Do internet marketing capabilities interact with the effect of procedural capabilities for public procurement participation on SMEs’ sales performance?

PurposeThis study aims to examine the influence of procedural capabilities for public procurement participation on small and medium enterprises’ (SMEs) sales performance in Tanzania. Also, the study establishes the interaction effect of internet marketing capabilities on the relationship between procedural capabilities and sales performance.Design/methodology/approachThe authors conducted confirmatory factor analysis and PROCESS macro for simple interaction analysis to analyse cross-sectional data that were obtained through questionnaire from surveyed SMEs’ managers. The included SMEs are those that are involved in supplying goods, services and works to public entities in Dodoma, Tanzania.FindingsThe findings reveal that procedural capabilities for participation in public procurement enhance SMEs to improve sales performance. Also, there is a significant and positive relationship between internet marketing capabilities and sales performance. Lastly, internet marketing capabilities strengthen the relationship between procedural capabilities and sales performance.Social implicationsThis study is a wake-up call to SMEs to better comprehend public procurement procedures and e-business practices to use the available public procurement opportunities. It is argued that SMEs should invest in technology to market their businesses through social media and online platforms. According to the study, SMEs may benefit from improving their sales performance by fully utilising their internet marketing capabilities and participating in public procurement opportunities.Originality/valueThis study adds to the two main streams of literature that emphasise harnessing public procurement opportunities for SMEs (through public procurement participation) and leveraging internet marketing capabilities for SMEs to improve their sales performance.

THE IMPLICATIONS OF THE NEW EU FOREIGN SUBSIDIES REGULATION AND ITS DRAFT IMPLEMENTING REGULATION FOR INVESTORS AND BENEFICIARIES

This article examines the notification obligations according to the draft implementing regulation of the Foreign Subsidies Regulation (“FSR”), which was implemented by the European Parliament and the Council on January 12, 2023. The draft implementing regulation establishes an extensive notification system for mergers and acquisitions (M&A) cases and public procurement, including tenders. The article outlines the main notification obligations and the required data that must be submitted to the Commission under the FSR and its draft implementing regulation.The FSR came into effect on January 12, 2023, and will be applicable starting from July 12, 2023. As of October 12, 2023, companies are required to notify the Commission of mergers and participation in public procurement procedures when the relevant thresholds are met.The purpose of this article is to examine the FSR and its Draft Implementing Regulation, which aim to address potential distortions in the EU internal market caused by subsidies from third countries to companies operating within the EU.The analysis in this article is based on a review of the FSR and its Draft Implementing Regulation, and relevant legal sources. The article also considers the consultation period of the European Commission and feedback received from companies and stakeholders during the development of the draft implementing regulation. The methodology involves a detailed examination of the provisions, definitions, and notification requirements outlined in the FSR and its draft implementing regulation. The draft implementing regulation of the Foreign Subsidies Regulation presents new compliance and reporting requirements for companies operating within the EU, aiming to address potential distortions in the EU market caused by foreign subsidies. While the specific legal challenges can vary, companies and beneficiaries should be prepared for the new obligations and requirements. These include ensuring compliance, understanding the subsidy assessment criteria, cooperating with authorities during investigations, balancing transparency with the protection of confidential information, and potentially addressing legal challenges or disputes.The implementation of the Foreign Subsidies Regulation represents a significant step in regulating third country subsidies and promoting fair competition in the EU internal market.

The reservation of the right to participate in public procurement procedures for social and professional integration of veterans and other disadvantaged persons as a legal means of promoting justice in society

The present article is dedicated to the potential use of public procurement as a means of establishing justice in society and the implementation of social policy goals, particularly regarding the professional and social integration of war veterans and other disadvantaged persons. It is emphasized that one of the mechanisms for realizing these goals is the reservation of the right to participate in public procurement for certain categories of economic operators. The paper highlights the experience of the EU in reserving the right to participate in procurement, as provided for in Article 20 of Directive 2014/24/EU on public procurement. Special consideration is given to the fact that the use of the concept of “indigent persons” in translations of Directive 2014/24/EU into Ukrainian narrows the purpose of this norm. Therefore, it is proposed to use the concept of “disadvantaged persons” along with the concept of “disabled persons”. The authors suggest envisaging in the Law of Ukraine “On Public Procurement” a provision regarding the reservation by contracting authorities of the right to participate in procurement for specified economic operators, with the purpose of promoting the social and professional integration of disabled and disadvantaged persons. Furthermore, the authors propose the possibility of such reservation in the context of implementing relevant sheltered employment programmes as it is provided by the Directive 2014/24/EU. Based on the experience of the EU Member States, it is concluded that war veterans, as defined in the Law of Ukraine “On the Status of War Veterans, Guarantees, and Their Social Protection”, can be covered by the concept of “disadvantaged persons” and can benefit from the reservation of public procurement contracts. It is proposed not to define the list of disadvantaged persons as exhaustive, considering that in the conditions of war and post-war reconstruction, such individuals may include family members of fallen soldiers, women and young people returning from abroad, internally displaced persons, and others based on the priorities of post-war reconstruction in Ukraine. It was emphasized on the important requirement for economic operators to use the right of participation in reserved procurement, in particular the main purpose of their activity, which can be confirmed – social and professional integration of war veterans or other disadvantaged persons. Furthermore, suggestions have been developed to ensure non-discrimination and compliance with international obligations when introducing provisions regarding reserved procurement contracts in domestic legislation.