The number of tenders in public procurements is increasing

The report Statistics on Public Procurement, which is produced annually by the National Agency for Public Procurement and the Swedish Competition Authority, shows how public procurement develops in Sweden. In 2017, the purchases with a procurement requirement are estimated to have amounted to SEK 706 billion. This corresponds to 17.4% of GDP. In 2018, municipalities accounted for 7 out of 10 procurements, and 4 out of 10 contracts concerned construction work.

–Public deals are basically about creating the greatest possible benefit for citizens. By working strategically with procurements, the public sector can contribute to sustainable social development, says Inger Ek, Director General of the National Agency for Public Procurement.

Every year, approximately 18,500 public procurements are advertised in Sweden. In recent years, the number of bidders per procurement has decreased, but in 2018 there was a slight increase – from 4.1 to 4.3. The proportion of procurements with only one bidder is also decreasing – from 19% to 18%.

– Competition is important because it leads to a more efficient use of our resources. It also challenges the business community to create innovative solutions for the benefit of society. This means the increased interest in participating in public procurements is positive, says Inger Ek, Director General of the National Agency for Public Procurement.

A clear trend in this year's report is that the proportion of review applications continues to decline for the fourth consecutive year. In 2014, 8.1% of the procurements were reviewed. In 2018, the figure is 6.1%.

– It is obviously a positive development that the number of review applications is decreasing. One explanation may be that the public sector has improved public procurements. However, it is important, for legal certainty and the development of public procurements, that there is an opportunity to review public procurements so that the framework becomes clearer, says Rikard Jermsten, Director General of the Swedish Competition Authority.

This is the fifth consecutive year that the National Agency for Public Procurement and the Swedish Competition Authority jointly publish the statistical report. This year's report includes two novelties. For the first time, the authorities can present statistics on application and tender times and report on the distribution of the number of buyers per organisation.

• The value of purchases with a procurement requirement is estimated at approximately SEK 706 billion (2017).
• The most common bidder is a limited liability company with fewer than 50 employees.
• 75% of all bidders are small companies
• Approximately 4,100 organisations are subject to the procurement laws.
• 14% of all procurements are interrupted.
• Approximately 45 percent of all tenders lead to contracts.

Read the report, 2019:3 (Summary in Swedish)