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E-book Public Procurement : Theory, Practices and Tools
In the European Union (EU) over 250,000 public organizations spend around 2 tril-lion € annually, which is about 14% of GDP, procuring works, supplies, and ser-vices. Also, in countries outside the EU, around 12% of the GDP is spent by public organizations. This can add up to values between 5000 and 8000 € per citizen per year. Despite the considerable impact that public procurement has on the market, economy, public organizations, citizens, and businesses, it has not (yet) matured into a broad academic field. This book therefore seeks to shed light on public pro-curement by discussing what it is, how you can procure in the public sector, and ways to bring public procurement into the modern era, an era where public procure-ment is more than a management function and actively contributes to societal goals such as the reduction of greenhouse gas emissions or creation of job opportunities for long-term unemployed citizens and the overall creation of public value. By read-ing this book the reader will not only learn what public procurement entails, but also learn how they can become an agent of change via public procurement and actively contribute to the achievement of societal goals and creation of public value.This book addresses the influence of the economic, legal, societal, organiza-tional, and political context of public procurement. This first chapter lays the foun-dation of the book, explaining its necessity and the relevance of presenting an integrated and multidisciplinary view on procurement practices and tools to prepare for a new era of public procurement.Section 1.2 addresses what is public and what is private. In Section 1.3, this chapter introduces and defines the concept of public procurement. Section 1.4explains the main differences between public procurement and private purchasing. In Section 1.5, the procurement process is introduced as a process of prepare, pur-chase, and perform. Section 1.6 introduces the seven development stages of public procurement. Section 1.7 addresses how the economic, legal, societal, political, and organizational perspectives intertwine in public procurement. Section 1.8 provides a reading guide for the rest of the book. To determine what public procurement is and how it is different from its private counterpart, it is important to first define what ‘public’ means and what public orga-nizations are. The degree to which the organization is public determines, among other things, to what extent public procurement rules apply. In general, a distinction can be made between organizations that are purely public (e.g., municipalities or ministries) and who are usually required to abide by public procurement law (e.g., public transport or semi-public health care organizations) and purely private (e.g., furniture companies or supermarkets) that fall outside the scope of EU public pro-curement law. However, in today’s society, the lines between public and private are blurring, due to developments such as externalization, outsourcing, and public-private partnerships. The ‘publicness’ of organizations is now no longer a dichot-omy but a continuum. Organizations can embody the characteristics of the public and private domain and therefore create and safeguard both public and private val-ues. The position on the public-private continuum is partly determined by the extent to which organizations are constrained by political control, how they are funded and financed, and the extent to which they perform public and private tasks. This means that if an organization is considered public or private can vary per country, depen-dent on whether institutions that provide public services such as health care, trans-port, and education are privately or publicly owned. This is further addressed in Chapter 2.
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