Public Procurement: Finding Contracts and Realistically Assessing Opportunities

18%

Around 18% of European GDP is awarded through public procurement.

$18.8 billion

The United Nations procurement system alone has a total annual volume of around $18.8 billion.

520,000 EU tenders

TED, the EU’s tender platform, lists 520,000 tenders per year.

Is the public market relevant for your company?

In principle, SMEs and sole proprietorships can also take part in public tenders. It is not company size alone that matters, but the required qualifications and the ability to reliably fulfill the contract. Depending on the procedure, participation is possible as a main bidder, as part of a bidding consortium, or as a subcontractor.

Why should you turn to the public market?

Public procurement opens up a large and diverse sales market. Public contracting authorities are important buyers, particularly in the fields of energy, transport, defense, IT, and healthcare. The following arguments in particular speak in favor of companies taking part:

  • Significant market potential in almost all business areas
  • Comparatively high payment security from public contracting authorities
  • Harmonized basic principles and procurement guidelines across the EU
  • Competition, public visibility, transparency, and non-discrimination
  • Opportunities for subcontracting agreements, bidding consortia, and longer-term references

What challenges should companies consider?

The public market offers opportunities but requires a structured approach to formal requirements. Companies in particular perceive the following potential hurdles:

  • A strong focus on price, or the perception that only the cheapest offer counts
  • Fragmented tenders and a high administrative burden
  • Short deadlines as well as hard-to-understand tender jargon and complex technical specifications
  • From the perspective of unsuccessful bidders, sometimes too little transparency and feedback
  • Strong local or national competition
  • No subsequent price negotiation after submission of the offer

Whether these points actually apply in a specific case depends on the procedure and the published award criteria. In addition to price, quality, technical performance, life-cycle costs, or other criteria can also be decisive.

The Tender Process in 12 Steps

Number 01 white

The public authority identifies a specific need.

Number 02 white

It decides whether a procurement process will be carried out.

Number 03 white

It determines which service is to be procured.

The expected contract value is estimated.

The appropriate tender or award procedure is selected.

The tender documents are prepared.

The technical specifications are developed.

The award and evaluation criteria are defined.

The tender is published.

Bids from bidders are received.

The submitted bids are evaluated.

The procedure ends with or without the award of a contract.

Michaela Ahlgrimm-Siess at the UN event in Vienna

Although getting started can often seem daunting, don’t miss the chance to tap into this extensive procurement market. I’d be happy to help you!

Michaela Ahlgrimm-Siess, ICS

The Public Procurement Institutions

Tenders in Austria

The Federal Procurement Act (Bundesvergabegesetz) governs procurement by public contracting authorities. It covers in particular supply contracts, service and service concession contracts, construction and construction concession contracts, as well as competitions. Which type of procedure is permissible and appropriate depends, among other things, on the type and scope of the contract as well as the estimated contract value.

Depending on the contract value, a distinction is made between the below-threshold and above-threshold range. Contracts above the applicable EU thresholds must generally be announced EU-wide. Award procedures in the above-threshold range are handled electronically. Since thresholds and special regulations can change, you can find the current amounts and applicable legal status on the Unternehmensserviceportal (Business Service Portal).

More Information

Events on This Focus Topic

CERN Procurement: Access to Excellence

11. November 2026 – 12. November 2026 Genf, Schweiz

Major Project Gate A at Zurich Airport (Webinar)

13. November 2026 11:00 Uhr Online

International Projects in Emerging Markets

10. December 2026 Online

Expert consulting – directly accessible

Our expert provides reliable advice on all questions relating to public procurement.

Michaela Ahlgrimm-Siess, ICS

Michaela Ahlgrimm-Siess

EU Project Management

T +43 316 601 560 M +43 664 81 79 266 E michaela.ahlgrimm-siess@ic-steiermark.at

Frequently Asked Questions About Public Procurement

The tender search on the Unternehmensserviceportal (Business Service Portal) compiles tenders published under the Federal Procurement Act and can be used without registration. In addition, individual contracting authorities and specialized platforms publish further information.

TED – Tenders Electronic Daily is the central platform for notices on public contracts in the EU and the European Economic Area. The search can be narrowed down by country, place of performance, contracting authority, CPV code, and deadline, among other criteria.

Yes. According to the Unternehmensserviceportal (Business Service Portal), all companies, including SMEs and sole proprietorships, can take part in public tenders. What matters is whether the requirements of the specific procedure are met.

In particular, check participation and eligibility criteria, technical specifications, required evidence, deadlines, calculations, financing, delivery capability, and contract terms. Tender documents are binding.

No, not as a general rule. The award is based on the criteria set out in the tender. Depending on the procedure, factors besides price—such as quality, technical performance, life-cycle costs, or other criteria—can also be relevant.

The ICS Internationalization Center Styria offers initial guidance on procurement markets, information sources, and possible next steps. Specialized procurement experts are required for legal or contractual review.