Complex Procurement

Public procurement is made complex because procurement specification are difficult to define, competition is restricted by market factors or the bundling and transfer of procurement risks (e.g. public-private partnerships) (OECD).

Information about Complex Procurement

A complex procurement generally refers to public sector procurement, which represents on average 40-45% of the developed world economies in terms of spending on providing services and procuring from the private sector. The main differences between public and private sector procurement lie in (1) internal (multiple goals and stakeholders, political goals), (2) external (transparency, accountability), (3) contextual (budget-driven, cultural settings), (4) process, and (5) organisational role demands, which are generally absent from the private sector (Knight et al., 2012). Inability to define upfront the technical means capable of satisfying the objective of the project, innovative or novel specification, restricted competition, and the contract being based on innovative commercial models are some of the factors that increase the complexity of public procurement (OGC, 2008).

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