Public Sector Procurement Definition
Public sector procurement is the process of acquiring goods and services from external suppliers for use by the government, public corporations, or other public bodies. It is usually overseen by a government agency or department, and the procurement process is often governed by national or supranational laws and regulations.
In many countries, public sector procurement makes up a large percentage of total government spending. In the European Union, for example, public procurement accounts for around 19% of GDP. In the United States, federal government spending on contracts with private firms totaled $1.3 trillion in Fiscal Year 2016 alone.
Given the importance of public sector procurement, there has been a great deal of research into ways to improve its efficiency and effectiveness. One common area of focus is streamlining the bureaucratic procedures that often slow down the process. Another is ensuring that contracts are awarded to the firms offering the best value for money, rather than simply those with the lowest bid price.
