Why public tenders endanger our local economy!

Why public tenders endanger our local economy!

Public procurement has been criticized for years, especially in Delmenhorst, where contract awarding is often considered ineffective. The regional economy is suffering from a system that places more emphasis on the lowest price than on supporting local businesses. Loud Delmenews This approach increases the risk that tax resources will flow to other cities and federal states instead of strengthening the regional economy.

Public institutions often find it difficult to take regional companies into account in the procurement process. Many orders go to suppliers who often travel long distances in order to offer the cheapest prices. An example of this is the care of those in need of care in Bremen, where aids are supplied by companies from southern Germany because they offer the cheapest offers. Another example is the new building at the Max Planck High School in Delmenhorst, where contracts were awarded to companies from Burgwedel and Ahrensbök.

The challenges of public procurement

The problems when awarding contracts are diverse and affect different industries. It often remains unclear what quality the services provided actually have. Especially in an area where local companies could offer similar services, there is a risk that they will be excluded by the rigid procurement guidelines. Craftsmen for flooring work that are needed for the job at the high school, for example, travel from Morsbach.

As the legally established procurement law standards show, the focus in public tenders is often solely on the price and performance of the contractor. These practices contradict the principles of European public procurement established by DG Growth. These principles include transparency, open competition and proper management of procurement procedures, as set out in TED -Portal documented.

EU directives and their effects

All tenders exceeding a certain contract value must be published in an official supplement, which is done in a fee-free electronic format. The thresholds are clearly defined, for example for public works contracts at EUR 5,538,000. These EU directives were issued to ensure a competitive, open and well-regulated procurement market and to encourage tendering bodies to make targeted use of procurement notices.

Every year, contracts worth a total of around EUR 815 billion are published within the EU, with over 3,000 new tenders every day. Despite these regulations, the challenge remains that the quality of services often remains unclear, while local companies that could potentially offer the same service are overlooked due to the existing competitive situation.

At a time when many industries are seeking price consolidation, contracting authorities and existing procedures appear to be hindering rather than supporting this process. It remains to be seen to what extent public procurement will develop in Delmenhorst and other cities in the future.