Public sector procurement

Launched: March 2004

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Purpose of the study

To investigate how public procurement can impact on competition both positively and negatively and to develop a screening process to identify sectors where the public sector is likely to be in a position to affect competition and which the OFT should consider.

(Study followed in-house work.)

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Findings

The findings showed that public procurement can affect competition in a number of ways, including:

1. Short term effects amongst potential suppliers - effects on the intensity of competition among potential suppliers in the course of a tender process.

2. Long term effects on investment, innovation and competitiveness.

3. Knock on effects on competition in the supply of other buyers.

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Recommendations

None.

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Action following market study

Report presented to and discussed by groups such as the Competition Forum, OGC Board and Chief Executives Advisory Group, and Cross Departmental Ministerial Group on Innovation. Strongly supported by OGC Kelly Team.

Later report 'More competition, less waste: public procurement in the municipal waste management sector' in collaboration with OGC and Defra, May 2006.

Report 'Making competition work for you' guidance for public procurers of construction services jointly published with OGC January 2007.

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Market study details and report

Download Summary 'Assessing the impact of public sector procurement on competition' September 2004 (pdf 421 kb)

Download Main report 'Assessing the impact of public sector procurement on competition' September 2004 (pdf 1,102 kb)

Download Case studies 'Assessing the impact of public sector procurement on competition' September 2004 (pdf 490 kb)

Download [oft749a[1].pdf] Summary and conclusions 'Empirical indicators for market investigations' (pdf 314 kb) September 2004

Download Main report part 1 'Empirical indicators for market investigations'   September 2004 (pdf 812 kb)

Download Main report part 2 'Empirical indicators for market investigations'  September 2004 (pdf 1Mb).

The OFT is working with the Office of Government Commerce see joint OFT / OGC press release 'OFT joins forces with OGC & Defra on review of procurement in waste management' 23 May 2005.

Download  Executive summary 18 May 2006 (pdf 97 kb).

Download 'More competition, less waste'  18 May 2006 (pdf 473 kb).

See press release 'More competition, less waste' 18 May 2006.

The OFT and the Office of Government Commerce (OGC) published a guide for public procurers of construction services: Making competition work for you 29 January 2007 (pdf 1.2Mb).

See also public subsidies 'Public Sector Procurement: OFT study of the impact of public sector procurement on competition' 29 January 2007.

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Background information

Preliminary research review is announced. See press release 'OFT to review public sector procurement'. 5 February 2004.

Back to: Completed market studies