Public procurement (the purchase by governments and state-owned enterprises of goods, services and works) accounts for a significant percentage of GDP and has a direct impact on the economy. Obtaining more accurate and comprehensive information about one of governments’ largest spending processes, therefore, is key to improving the quality of government services, better allocating resources and providing greater value for taxpayers’ money.

In public procurement, the financial interests at stake, the volume of transactions, and the close interaction between the public and the private sectors create multiple opportunities for private gain and waste at the expense of taxpayers. Providing an adequate degree of transparency throughout the entire public procurement cycle is critical to minimising the risk of fraud, corruption and mismanagement of public funds, and to levelling the playing field for businesses thereby promoting competition. The accessibility of information, stakeholder participation in key stages of the procurement cycle, and the possibility of review and remedy in case of dispute are essential to transparency and accountability in public procurement.

E-procurement, the use of information and communication technologies in public procurement, facilitates access to public tenders and increases competition. It also improves the transparency of the procurement cycle, empowering citizens and businesses to hold public authorities more accountable. In addition, the use of information technologies in public procurement can decrease administrative burdens and reduce costs for both governments and businesses. Electronic channels can also lead to a shorter order cycle and increase compliance levels, helping – potentially – to lower prices.

OECD member countries are increasingly taking greater account of environmental sustainability in public procurement. Through green procurement, member countries make an important contribution to sustainable consumption and production. However, despite green policies being front and centre, less than half of OECD member countries have not established a standard definition for green procurement. Only six countries (Denmark, France, Italy, Japan, Luxembourg and Slovenia) incorporate a definition in the law, while the majority of the countries that have defined green procurement have done so in an environmental policy or strategy document.