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WHY THIS PRINCIPLE?

To ensure efficient and transparent sub-national procurement systems.
On average, general government procurement accounts for 13% of GDP and nearly a third of government expenditures in OECD countries, 55% of which is undertaken at sub national level. It is one of the government activities most vulnerable to waste, fraud and corruption. However, sub-national governments often lack procurement know-how or specialised personnel. Problematic systems can compromise the integrity of the investment process, deter investors and compromise the achievement of policy objectives. Transparency throughout the procurement cycle, professionalisation of the procurement function, and clear accountability and control mechanisms are all required.


To enhance the use of procurement by sub-national governments as a strategic tool.
In addition, governments should use procurement to ensure effective public service delivery while pursuing strategic government objectives – not only value for money and integrity, but also wider objectives such as greening public infrastructure, adapting to climate change, supporting innovation or SME development.

IN PRACTICE

• Provide guidance for sub-national governments for procurement (national level).
  
  
• Collaborate for procurement (e.g. purchasing alliances, networks, framework agreements, central purchasing bodies) (all levels).
  
  
• Use e-government tools to simplify and harmonise procurement practices (all levels).
  
  
• Professionalise procurement (all levels).
  
  
• Use procurement as a strategic tool in sub-national governments to foster green development and support innovation (sub-national level).

PITFALLS TO AVOID

• To create procurement functions in each single jurisdiction without mutualising the operations.
  
  
• To frequently change procurement rules, which put sub-national governments in a situation of uncertainty.
  
  
• To undermine training needs for procurement.
  
  
• To under-estimate the strategic potential of procurement

GOOD PRACTICES

‌‌‌‌	See real life examples on how countries have been putting this principle into practice. Read more

COUNTRY PROFILES

SELF ASSESSMENT QUESTIONS