Public Procurement in Germany

Strategic Dimensions for Well-being and Growth

As the largest economy in Europe, Germany has a massive public procurement market, accounting for around 15% of GDP (EUR 500 billion) per year and affecting many areas of the economy and society. This review analyses public procurement's impact on the well-being of Germany's citizens by focusing on six areas: economic impact and beyond, the legal and governance framework, centralisation, e-procurement, strategic procurement and human capital. In addition, it analyses procurement at subnational level, since almost 80% of procurement in Germany is conducted by Länder and local governments.

Published on August 26, 2019Also available in: German

In series:OECD Public Governance Reviewsview more titles

TABLE OF CONTENTS

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Preface	Read PDF
Foreword	Read PDF
Abbreviations and acronyms	Read PDF
Executive summary	Read PDF
The impact of public procurement in Germany: Economic effects and beyond	Read PDF
Enhancing the legal framework and governance structure for public procurement in Germany	Read PDF
Strategic centralisation of procurement to maximise economic benefits in Germany	Read PDF
Electronic procurement in Germany	Read PDF
The use of strategic procurement in Germany	Read PDF
The human resource capital of the German public procurement system	Read PDF

Public procurement represents a large part of the economy in Germany

EUR 500 billion

15% of GDP

35% of government spending

With such amounts involved, public procurement can play an important role in shaping society and affect citizen’s well-being. This is why analyses of public procurement need to go beyond spending. In particular, Germany could increase data gathering and measurement of public procurement’s impact on four dimensions of future well-being: social, environmental, economic and human capitals:

Germany review - figure of the 4 capitals

Since "What doesn’t get measured, doesn’t get done", the OECD compiled a set of indicators to measure the impact of public procurement (See Table 1.2).

Key Recommendations

Germany’s 2016 public procurement reform changed profoundly the procurement system at all levels of government. It significantly streamlined the legal framework, and aligned Germany’s system with the new EU directives on procurement. More can be done to maximise the potential of public procurement:

Track the impact of public procurement on the four capitals for future well-being (social, natural, economic, human)
Further streamline the legal framework
Use bundling more strategically and systematically
Continue developing the e-procurement system
Align strategies for sustainability and public procurement practices
Invest in professionalisation of public procurers

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Portal to OECD work on public procurement
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OECD work on Germany

*Bundling: combining two or more procurement needs previously provided or performed under separate smaller contracts into a solicitation for a single contract)

For more information, contact the Public Procurement Unit: public.procurement@oecd.org