Why the medium-sized business requirement and the procurement practice for public tenders should be reformed.

Why the medium-sized business requirement and the procurement practice for public tenders should be reformed.

According to a report by amp2.wiwo.de, the middle class requirement has been criticized in public tenders. Experts demand that the division of lots for large orders should be designed in such a way that medium-sized companies can also bid. However, this would lead to further bureaucratization, as the state contracting authorities could be overwhelmed with coordination. A possible solution would be to enforce the medium-sized business requirement through general contractors, who have to pass on a certain percentage of the lots to medium-sized companies.

Does it make sense that in public tenders the cheapest provider always gets the contract? This question is also addressed in the article. It is argued that procedures that do not just focus on price but also specify quality standards would make more sense. Although such procedures are already possible, administrations rarely take advantage of them because they are afraid of legal consequences.

This discussion has a direct impact on the market and the financial industry. If the medium-sized business requirement in public tenders is reformed, this could improve the competitive conditions for small and medium-sized companies. A change in the selection process for tenders could mean that qualified providers, who are not necessarily the cheapest, have a better chance of being successful.

Overall, the article discusses important aspects of public procurement that have a direct impact on market participants and must be carefully considered. It remains to be seen whether political and economic actors will take up this discussion and lead to concrete changes.