Public Procurement in Germany

Strategic Dimensions for Well-being and Growth

image of Public Procurement in Germany

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.

English Also available in: German

Strategic centralisation of procurement to maximise economic benefits in Germany

The centralisation of procurement operations through the aggregation of needs, framework agreements or centralised oversight of procurement performance among other techniques, can produce numerous benefits for countries. This chapter assesses the centralisation strategies that Germany has developed at the federal level, and compares them to international initiatives. The chapter then offers recommendations to maximise the benefits reaped through centralisation. These recommendations align with the German government’s renewed interest in optimising centralised procurement processes. The recommendations also support the conclusions of a parallel spending review on the coverage of centralised procurement instruments at the federal level in Germany.

English Also available in: German

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