Open participation and competition. This principle implies that all potential qualified suppliers should be allowed to participate in public procurement procedures, except in special, regulated and justified circumstances that allow for exceptions.

Fairness and Equality. All interested/potential bidders should have access to and rely on clear, objective and complete information and criteria publicly disseminated by the contracting entity. Bidders also have the right to expect to be treated fairly and on equal conditions with other participants. In practice, the principle of fairness and equality in public procurement also includes:

• fair distribution of rights and responsibilities between the procuring party and suppliers, procurement participants, consultants and contractors;
• robust procurement-related processing of complaints and remedy mechanisms.

Integrity and Transparency. Taxpayers and citizens in general have the right to expect that public procurement is conducted in good faith, solely in the public interest and in a transparent manner. The principle of integrity refers to the use of funds, resources, assets and authority in accordance with intended purposes and in a manner that is well-informed, in the public interest and broadly consistent with good governance principles. Integrity also implies drafting, integrating and proactively applying anti-corruption principles, guidelines and other manuals.

Transparency means that the procuring entity and contractors shall ensure that stakeholders are able to properly analyze the procurement activity, which shall be supported by appropriate documentation and disclosure. Transparency also requires:

1. consistent and timely provision of relevant procurement information to all stakeholders through accessible and common sources at reasonable cost or free of charge;
2. proper reporting of procurement activities;
3. inclusion of confidentiality clauses in contracts only where justified.

Economy, Efficiency and Effectiveness (3E Principle). The principle can also be described as best value for money (Value for Money, VfM) for goods, construction (works) or services. It also implies that these items are procured in the required quality, quantity and on time. In public procurement, some 3E parameters may include the following aspects:

1. Economy. The economy principle takes into account factors, such as sustainability, quality, nonprice factors and/or life cycle costs, that support value for money. It also ensures that economic, environmental and social aspects are included in the procurement requirements.
2. Efficiency. The government, represented by relevant bodies and other organizations, always has a limited set of resources to deliver on its obligations. Thus, the effectiveness of procurement is defined through the ability to provide the best result that meets the goals and objectives of public policy using the available resources.
3. Effectiveness. Procurement procedures tend to be time sensitive, while procuring entities seek to avoid delays. The principle of efficiency requires that procurement processes be adequate in terms of the cost and risks linked to the main project activity.

In addition, the World Bank points out that the price alone does not necessarily represent value for money. Thus, the principle of value for money, in addition to assessing costs and benefits, requires an assessment of relevant risks as well as non-price parameters and/or life-cycle costs, as appropriate.

Fit for Purpose. The principle applies to both procurement outcomes and procurement procedures in determining the most adequate approach to achieve project development objectives and results, taking into account socio-economic and other conditions, major risks, timing, cost and complexity of the procurement.

Given that public procurement includes both the procurement by a large number of national, regional and municipal authorities, as well as by state-owned companies and other authorized legal entities, collecting data on all contracts is a difficult task.

The problem stems from the previously mentioned factor. In particular, the Open Contracting Partnership estimates that the amount of funds for open contracts in public procurement is less than 3% of the total. Meanwhile, the UK (just over 28% of the contract amount) and the US (up to 6.5% of the total contract amount) disclose the most data.

For a number of areas, primarily related to national defense, security and law enforcement, as well as health care (especially since the COVID-19 pandemic), due to their specific nature, disclosure of information about facilities as well as procurement costs may violate government secrets.

Published procurement and contracting data are not always presented in a uniform manner. At the same time, according to several estimates, the format of data presentation may change annually, which makes it difficult to use open statistics to estimate the size of public procurement.

The growth of public procurement sector, both in absolute and relative terms. The most vivid example thereof is that of the OECD member countries, where the volume of public procurement grew steadily from 11.8% of GDP in 2007 to 12.9% in 2021. In many respects, the growth of the public procurement sector is due to measures to support economic sectors after the financial and economic crisis of 2008-2009 and the COVID-19 pandemic.

Public procurement centralization. Combining the capabilities of multiple government agencies and/or organizations allows for a more advantageous position when negotiating prices and procurement volumes, thereby improving overall value for money. In addition, according to recent studies, even if an entity does not participate in centralized procurement, the cost of goods, construction and services for it also becomes lower.

Framework agreements. This type of agreement reduces the time required to evaluate and sign the necessary documents, as well as facilitates the participation of suppliers in subsequent procurement activities.

Public procurement digitalization. The creation and implementation of digital platforms facilitates the procurement process, provides more potential participants with access to procurement, reduces costs and increases the transparency of the procurement process. In addition, digitalization allows for the integration of the management systems of procuring entities and suppliers, simplifying document flow and subsequent reporting, including taxes and duties, as well as procurement audits.

New approaches to procurement. The relationship between government agencies and suppliers is becoming more and more similar to the relationship between participants of trading platforms (or marketplaces), allowing, on the one hand, to simplify the process of selecting and comparing suppliers, and on the other hand, to reduce the time needed for procurement.

Introduction of artificial intelligence (AI) and data analysis. In particular, SpendNetwork estimates that integrating selected elements of AI can significantly reduce the cost and time of identifying potential suppliers and managing the contracting process. In turn, analyzing big data in public procurement will allow early identification of risks and possible violations.

Finally, another important trend is the introduction of a strategic approach to public procurement, including “green” or sustainable public procurement. Within this trend, public procurement is seen as a tool to stimulate innovation and the introduction of environmental and resource-saving technologies, as well as to achieve the Sustainable Development Goals (SDG 12: Responsible Consumption and Production, target 12.7).