The Procurement Glossary » Public Procurement

Public Procurement

Compliance & Risk

Definition

The purchasing of goods and services by government and public-sector bodies, governed by strict rules on fairness and transparency.

Explanation

Public procurement must demonstrate value for money and fair, open competition, following detailed regulations on advertising, evaluation and appeals. Its transparency requirements exceed those of most private-sector buying.

Example

The public tender is advertised openly, evaluated on published criteria, and the award is published for transparency.

Related terms

• Tender — A formal, often public, invitation for suppliers to submit competitive offers for a defined contract, common in government and large-enterprise buying.
• Evaluation Criteria — The defined factors — and their relative weights — used to score and compare supplier bids or proposals.
• Procurement Compliance — Adherence to the policies, contracts, laws and controls that govern how an organisation buys.
• Audit Trail — A complete, time-stamped record of the steps and approvals in a transaction, showing who did what and when.

Frequently Asked Questions

What is Public Procurement?

The purchasing of goods and services by government and public-sector bodies, governed by strict rules on fairness and transparency. Public procurement must demonstrate value for money and fair, open competition, following detailed regulations on advertising, evaluation and appeals. Its transparency requirements exceed those of most private-sector buying.

Can you give an example of Public Procurement?

The public tender is advertised openly, evaluated on published criteria, and the award is published for transparency.

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