Blog What are the goals of public procurement?

What are the goals of public procurement?

Public procurement is an integral part of any government’s operations, ensuring that the public receives the greatest value for their tax payments. But what are the specific objectives of public procurement? What are the government’s objectives when purchasing products and services using this method?

Procurement is the procedure of awarding private organisations government contracts. The goals of public procurement are to meet the public’s requirements with timely, cost-effective, and quality-controlled delivery of products and services. To achieve these goals, public procurement regulations must be strictly adhered to.


The two primary categories of government procurement are contractual and non-contractual. Contractual public procurement occurs when the government establishes specific conditions, requirements, and specifications for potential bidders to comply to. Non-contractual public procurement is when the government does not establish specific conditions or requirements, leaving it up to the contractor to decide what to do.

The primary advantages of government procurement are that it can save taxpayers money through competitive tendering on contracts, that it can guarantee timely delivery of goods and services, and that it can promote market competition, which can improve the quality of goods and services. However, there are risks associated with public procurement, including misconduct and surplus.


The different types of objectives

Public procurement is the authority of a government or private sector entity to purchase products or services from a specific supplier. Among the goals of public procurement are improvement of efficiency, competition, and accountability. Price, quality, timeliness, sustainability, fairness, and neutrality are the six primary categories of objectives.

  • 1. Price

    Price is the most essential objective of procurement because it ensures that the government or organisation can afford the purchase. The price should be reasonable in comparison to other similar choices on the market.

  • 2. Quality

    Quality is also an essential objective of public procurement, as it determines the degree to which the purchased products or services meet specified requirements. Products of higher quality will last longer and are less likely to malfunction.

  • 3. Timeliness

    Timeliness is an essential objective of public procurement because it enables timely purchases. Buying items fast reduces the amount of time required to complete a task and the associated expenses incurred due to delays.

  • 4. Sustainability

    Sustainability is an essential objective of public procurement because it ensures the durability of the products and services purchased. In the long term, purchasing sustainable products reduces environmental impact and saves money.

  • 5. Proportionality

    Proportionality is a key objective of procurement because it ensures that purchased products and services are used appropriately. Purchasing quantities that reflect actual requirements prevents the government or organisation from overspending.

The goals of public procurement within the context of privatisation

Traditionally, procurement has been viewed as a means of achieving economies of scale, fostering innovation, and promoting competition. Nevertheless, in the context of privatisation, these goals may not always be realisable or desirable. Privatisation may result in increased costs for government services and restricted access for those who cannot afford to pay more. In addition, it can contribute to corruption and favouritism in contract awarding, which can undermine public confidence in the system. In addition, privatisation may increase the influence of private companies in the economy and reduce government transparency and accountability.

When privatising public services, it is essential to thoroughly consider the objectives of government procurement. If the goals are not met, privatisation may not be the most effective means of attaining them.

The goals of government procurement in the context of market regulation

The procedure by which the government purchases products and services from vendors is known as public procurement. The goals can be categorised broadly as fiscal, technical, and administrative. The fiscal objectives include decreasing government expenditures, increasing tax revenues, and enhancing government operations’ efficacy. Technical objectives may centre on enhancing the quality of purchased products or services, reducing expenses, or boosting competition. Administrative objectives may include fostering innovation or ensuring that suppliers adhere to a particular set of standards.

Procurement must adhere to a variety of market regulation factors in order to accomplish the intended results. These factors include pricing, product quality, intellectual property rights, labour standards, and environmental protection regulations. Despite the fact that many of these regulations are sector- or country-specific, there are a number of general principles that should be considered when conducting public procurement. These principles include open and transparent tendering processes, equal treatment for all applicants regardless of size or location, effective monitoring and management of government contracts, and adherence to applicable laws and regulations.

Despite a number of obstacles, public procurement is crucial for supplying governments with high-quality goods and services at competitive prices. Businesses can ensure their success in this competitive market by adhering to market regulation factors and other common-sense best practices when bidding on contracts.