Public procurement

Public procurement is the process by which public authorities and bodies purchase supplies, services or works in accordance with specific rules.

Glossary
Public procurement

Explained – what does public procurement involve?

Public procurement is an umbrella term for the procedures that public actors, such as central government authorities, municipalities and regions, must follow when purchasing supplies, services or works. The rules are primarily set out in the Swedish Public Procurement Act (LOU), the Swedish Utilities Procurement Act (LUF) and the Swedish Concessions Procurement Act (LUK), which are based on EU directives. The aim is to ensure competition, transparency and equal treatment in the market. A public procurement law firm can assist with drafting contracts that meet statutory requirements and with tender documentation preparation.

The term is used to describe the formal process applied when suppliers wish to offer supplies, services or works to public actors. It covers both national procedures and procedures governed by EU directives, which must therefore comply with common rules across the internal market. For many organisations and suppliers, understanding the public procurement definition and the public procurement process is key to effective participation.

When does public procurement become relevant?

The question of public procurement arises when an authority or other contracting organisation plans to procure supplies, services or works above certain EU threshold procurement values. This can range from consultancy services to major infrastructure projects. It is also relevant for direct awards, where specific rules apply, and for procurements that must be advertised in the EU-wide database TED. Professional public procurement services can help determine whether an open procedure procurement, restricted procedure procurement or negotiated procedure procurement is appropriate.

Illustration of a public procurement process with contract review and evaluation, showing authorities and suppliers assessing tender documents under public procurement law.

Points to note in public procurement

When conducting public procurement there are several important aspects organisations should consider to ensure the process is correct and lawful and to safeguard competition in public procurement.

Ensure the procurement follows the applicable statute, for example LOU or LUF, as implementations of public procurement law.
Identify the correct procedure: open, restricted, negotiated or direct award, in line with public procurement law.
Set clear and proportionate requirements in the procurement documents and clarify procurement documents meaning where needed.
Ensure advertising within the correct timeframes and through the appropriate channels.
Document the entire process to facilitate follow-up and any legal review.
Handle any questions from tenderers promptly and transparently.
Check that the award decision follows the stated criteria, is properly reasoned and supports procurement contract compliance.

By following these points, the risk of review proceedings is reduced and a fair, competitive process is supported. A public procurement law firm can provide targeted public procurement services to manage risk, procedure selection and documentation.

Public procurement

Why is public procurement important?

Public procurement is important because it ensures that public funds are used efficiently and responsibly. By complying with the procurement legislation derived from EU law, public bodies can promote competition and prevent corruption.

For suppliers, properly run procedures mean the market is open and everyone has the same opportunity to participate. This can lead to better business opportunities and innovation supported by compliant public procurement services.

From a societal perspective, public procurement builds trust in the public sector and promotes sustainable development by including social, environmental and ethical requirements in the process.

The purpose is to ensure competition, transparency and equal treatment in the purchase of supplies, services and works.

A procurement must be advertised when it exceeds the applicable threshold values under LOU, LUF or LUK. Smaller procurements can sometimes be conducted as direct awards.

A public procurement begins with needs identification and preparation of tender documents, followed by advertising, tender submission, evaluation and award. The process ends with contract signature and subsequent contract management.

Public procurement is primarily governed by three statutes in Sweden that implement EU rules:

Public Procurement Act (LOU)
Utilities Procurement Act (LUF)
Concessions Procurement Act (LUK)

All are based on EU directives and are complemented by case law from both national courts and the Court of Justice of the European Union.

LOU applies to procurements conducted by traditional contracting authorities such as municipalities and central government authorities, while LUF applies in the water, energy, transport and postal sectors.

Companies can improve their chances by:

Monitoring current notices in procurement databases
Analysing and understanding the requirements in the tender documents
Submitting competitive, clear tenders
Reviewing references and prior experience
Aligning the offer with any sustainability and quality requirements

Thorough preparation increases the likelihood of meeting the requirements and winning contracts. Engaging a public procurement law firm for public procurement services can support tender documentation preparation, procedure selection (open, restricted or negotiated) and procurement contract compliance.

We operate across Europe and support clients throughout the internal market with advice on public procurement law and the public procurement process.