Maximising theBenefits ofEffectiveCompetition inPublic ProcurementinSlovenia OECD Public Governance Reviews Maximising the Benefitsof Effective Competitionin Public Procurementin Slovenia This document was produced with the financial assistance of the European Union. The views expressed herein can inno way be taken to reflect the official opinion of the European Union. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty overany territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. ISBN 978-92-64-96656-7 (print)ISBN 978-92-64-55534-1 (PDF)ISBN 978-92-64-77137-6 (HTML) OECD Public Governance ReviewsISSN 2219-0406 (print)ISSN 2219-0414 (online) Corrigenda to OECD publications may be found at: https://www.oecd.org/en/publications/support/corrigenda.html.© OECD 2025 Attribution 4.0 International (CC BY 4.0) This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence(https://creativecommons.org/licenses/by/4.0/).Attribution– you must cite the work.Translations– you must cite the original work, identify changes to the original and add the following text:In the event of any discrepancy between the original work and thetranslation, only the text of original work should be considered valid.Adaptations– you must cite the original work and add the following text:This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed inthis adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material– the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and forany claims of infringement.You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shallbe Paris (France). The number of arbitrators shall be one. Foreword In Slovenia, public procurement is a key economic activity accounting for13.7% of GDP and27.6% ofgovernment expenditure. For this reason, Slovenia recognises public procurement as a strategic tool tosupport broader public policies and contribute to the country’s economic growth and recovery. Indeed,public procurement hasa significant impact on the quality of services provided to citizens and on theeconomic and social development of countries. Tosecure value for money in their public procurement processes, public buyersusuallyrely upon openand competitive bidding processestoensureoptimal participation fromsuppliers. However, many OECDcountries, including Slovenia,experience difficulties inattracting an adequate number of suppliers in theirpublic procurement procedures.In addition, several countries show a high rate in the use of non-competitive processes such as direct awards or negotiated procedures without prior publication. Access toprocurement opportunities is a key principle of a sound public procurement system. The 2015OECD Recommendation on Public Procurement highlights that ensuring broad access to the publicprocurement market promotes competition and creates a level playing field and is thus essential forachieving value for money and for driving innovation, quality, and efficiency. A healthy level of competitionprovides benefits for both governments and businesses by stimulating economic productivity and SMEdevelopment. Studies on the cost savings from increased competition in procurement markets concludethat rules and procedures that promote transparency and competition tend to reduce contractual pricessubstantially. A competitive environment can increase the trust of citizens and the private sector in thepublic procurement system, as it fosters integrity and reduces the risks of unfair market practices. Creating a healthy competitive environment in public procurement has nonetheless proven difficult.Improvingaccess and competition in public procurement requires a multi-pronged approach,encompassing a wide array of stakeholders and addressing multiple root causes. This report analysesthe root causesbehind low supplier participation in public procurement opportunities,single biddingproblems, and the high use of negotiated procedures without prior publication in Slovenia.Based on this analysis, it suggestsmeasures to boost the level of competition in the public procurementmarket. This report was developed under the project “Increasing competition in the Slovenian publicprocurement system through promoting collaborative public procurement” and designed by Slovenia, theOECD and the European Commission (EC).