Organizing Public Procurement

Abstract

This chapter introduces organizational structures for public procurement and explains that the procurement function of any organization is broad and involves more than the procurement department. It discusses several options that public organizations have for organizing their procurement function, depending on their maturity and organizational coherence. For example, coordinated purchasing is a common organizational form for small public organizations, whereas center-led purchasing might be more suited for larger public organizations. Both forms can facilitate the transition to sustainable and social public procurement, using among other things a central sustainable procurement policy and guidelines, offering resources, and sharing best practices. This chapter ends by zooming in on joint procurement as a specific organizational form for cooperating public organizations. It presents four types of joint procurement (Hitchhiking, Bus Ride, Carpooling, Convoy, and Formula 1 Team) and explains that simple forms of joint procurement can be used for commodities and simple or non-emotional tenders and more intensive forms of joint procurement are more suitable for complex tenders.