The problem of the number of bids in public procurement procedures
In the last period, a serious problem has been noticed in connection with the number of bids submitted in public procurement procedures. Although the new Law on Public Procurement and the modernized Public Procurement Portal were supposed to contribute to greater transparency and competition, practice shows that in a significant number of procedures, a small number of bidders appear, often only one.
Causes of problems in practice:
- Low level of competition – a large number of procedures end with one or two offers, which reduces the possibility of choice and increases the risk of monopolistic behavior.
- Administrative complexity – business entities, especially small and medium-sized enterprises, often point out that the procedures are complicated and demanding, which deters them from participating.
- Distrust in the system – the perception that tenders are “targeted” in advance for certain bidders reduces the motivation of others to participate.
- Specialized requirements – in certain sectors (e.g. healthcare, pharmacy, construction) the criteria are so specific that a small number of companies can meet the requirements.
Consequences:
- Reduced efficiency of public spending – fewer offers mean weaker competition and often a higher price for the state.
- Risk of corruption – lack of competition increases the possibility of abuses.
- Limited market development – small and medium-sized enterprises remain outside the public procurement system, although their inclusion could contribute to innovation and lower prices.
Possible solutions:
- Simplification of procedures – reduction of administrative barriers for small and medium-sized enterprises.
- Strengthening control and transparency – stricter control of criteria and publication of all relevant information on the Portal.
- Education of bidders – trainings and guides for business entities, in order to facilitate participation in procedures.
- Incentives for competition – introduction of mechanisms that motivate a greater number of bidders to participate.
Also, one of the possible solutions is the hiring of an expert by the Bidder, who would provide them with the necessary support and enable them to participate in these demanding procedures. In this way, many things would be overcome, which today represent a problem in the form of reduced competition, i.e. low percentage of submitted bids, according to the public procurement procedure.
In our law office, Đorđe Gršić, a lawyer with a certificate of public procurement officer, is in charge of cases in the field of public procurement.
