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Strategies in public procurement. Business Model Canvas - bidding tools
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Publisher: Editura Universitară
Author: Ecaterina-Milica Dobrota
Edition: I
Pages: 342
Publisher year: 2025
ISBN: 978-606-28-1937-8
DOI: 10.5682/9786062819378
Product Code:
9786062819378
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The SMEs account for more than 99% from the total number of non‑financial enterprises, but their public procurement participation is below this level due to various impediments. The tendering and contract planning is a key element that helps enterprises to improve their efficiency. The aim of this study is to present a business strategy model taking into account external and internal factors influencing the enterprise to access the public sector contracts.
During the research, some factors were the subject of a questionnaire, with a focus on the training level of the staff with responsibilities in public procurement and on the activities' digitalisation. Based on the factors analysed, a business strategy is proposed, starting from the Business Model Canvas (BMC). The nine blocks of the BMC model were completed taking into account the rules of public procurement, the requirements of the beneficiary, but also the reasons for rejection of bids resulting from the jurisprudence of the Court of Justice of the European Union (CJEU), the National Council for Complaints Solving (CNSC) and the Romanian Courts of Appeal.
The business strategy model is useful for entrepreneurs from two perspectives: the orientation of the business towards the public sector, by creating a BMC table at the macro level, and the orientation of the bidding decision to an identified tender procedure, by elaborating the BMC table at the macro level.
The research also reveals that the factor with the greatest impact on winning a public procurement procedure is staff training, and this area continually requires a significant number of highly trained specialists. In this respect, further development of university education programmes is proposed. Thus, the study is also relevant to universities for the development of courses in this field with a view to provide support to business and public institutions.
The research highlights the urgency for establishing the profession of procurement expert given the need for unified application of procurement rules and the need for credibility of those working in the procurement process, in tendering, but also in third party institutions that have responsibilities in the field of procurement.
During the research, some factors were the subject of a questionnaire, with a focus on the training level of the staff with responsibilities in public procurement and on the activities' digitalisation. Based on the factors analysed, a business strategy is proposed, starting from the Business Model Canvas (BMC). The nine blocks of the BMC model were completed taking into account the rules of public procurement, the requirements of the beneficiary, but also the reasons for rejection of bids resulting from the jurisprudence of the Court of Justice of the European Union (CJEU), the National Council for Complaints Solving (CNSC) and the Romanian Courts of Appeal.
The business strategy model is useful for entrepreneurs from two perspectives: the orientation of the business towards the public sector, by creating a BMC table at the macro level, and the orientation of the bidding decision to an identified tender procedure, by elaborating the BMC table at the macro level.
The research also reveals that the factor with the greatest impact on winning a public procurement procedure is staff training, and this area continually requires a significant number of highly trained specialists. In this respect, further development of university education programmes is proposed. Thus, the study is also relevant to universities for the development of courses in this field with a view to provide support to business and public institutions.
The research highlights the urgency for establishing the profession of procurement expert given the need for unified application of procurement rules and the need for credibility of those working in the procurement process, in tendering, but also in third party institutions that have responsibilities in the field of procurement.
Thanks/5
Preface/7
Summary /9
Summary/11
Contents /13
Introduction/15
1. Public procurement rules and the role of SMEs/24
1.1. Legislation applicable to public procurement/26
1.2. Involvement of SMEs in public procurement/30
1.3. The issue of business strategy for the participation of companies in public procurement/32
1.4. The application of BMC in the realization of a business strategy/36
2. Analysis of companies' participation in public procurement/40
2.1. Analysis of the parties involved in public procurement /40
2.1.1. Contracting authority/41
2.1.2. Bidder/46
2.2. Analysis of SME access to public procurement contracts/51
2.2.1. Comparative analysis of the number of SMEs in Romania and in the EU/52
2.2.2. Comparative analysis of contracts awarded to SMEs/53
2.2.3. Facilities granted to SMEs in bidding /60
2.2.4. Barriers encountered by SMEs in participating in public procurement/74
2.3 Bid rejection rate - indicator of participation in public procurement/76
3. Factors influencing the participation of companies in public procurement/82
3.1. Research objectives and methodology/85
3.2. Table of questions from the questionnaire/92
3.3. Centralized analysis of the results of the questionnaire/96
3.4. Horizontal analysis of the results of the questionnaire /105
3.5 Focused analysis of the results, by sections of the questionnaire/147
4. Realization of a business strategy model in compliance with public procurement rules/155
4.1. Essential questions for the preparation of the business strategy/160
4.2. Preparation of the BMC business table with the application of public procurement rules/161
4.2.1. BMC (business strategy) at the macro level/ 165
4.2.2. BMC (business strategy) at the micro/ 191 level
5. Business development proposals by improving internal resources/207
5.1. Training of personnel with duties in the field of public procurement/208
5.1.1. Quantitative and qualitative aspects regarding the need for training in public procurement/213
5.1.2. Prospects for the training of public procurement experts in universities/226
5.1.3. Development of internal procedures for the bidding process activities/238
5.1.4. The rigor of establishing the public procurement expert profession/245
5.1.5. Creation of public procurement clusters/250
5.2 Digitization of company activities/251
5.2.1. Digitization of the bidding process/254
5.2.2. Use of electronic signature/263
Conclusions/267
Bibliography/285
Appendices /319
List of abbreviations/335
List of tables/337
List of figures/338
List of annexes/341
Preface/7
Summary /9
Summary/11
Contents /13
Introduction/15
1. Public procurement rules and the role of SMEs/24
1.1. Legislation applicable to public procurement/26
1.2. Involvement of SMEs in public procurement/30
1.3. The issue of business strategy for the participation of companies in public procurement/32
1.4. The application of BMC in the realization of a business strategy/36
2. Analysis of companies' participation in public procurement/40
2.1. Analysis of the parties involved in public procurement /40
2.1.1. Contracting authority/41
2.1.2. Bidder/46
2.2. Analysis of SME access to public procurement contracts/51
2.2.1. Comparative analysis of the number of SMEs in Romania and in the EU/52
2.2.2. Comparative analysis of contracts awarded to SMEs/53
2.2.3. Facilities granted to SMEs in bidding /60
2.2.4. Barriers encountered by SMEs in participating in public procurement/74
2.3 Bid rejection rate - indicator of participation in public procurement/76
3. Factors influencing the participation of companies in public procurement/82
3.1. Research objectives and methodology/85
3.2. Table of questions from the questionnaire/92
3.3. Centralized analysis of the results of the questionnaire/96
3.4. Horizontal analysis of the results of the questionnaire /105
3.5 Focused analysis of the results, by sections of the questionnaire/147
4. Realization of a business strategy model in compliance with public procurement rules/155
4.1. Essential questions for the preparation of the business strategy/160
4.2. Preparation of the BMC business table with the application of public procurement rules/161
4.2.1. BMC (business strategy) at the macro level/ 165
4.2.2. BMC (business strategy) at the micro/ 191 level
5. Business development proposals by improving internal resources/207
5.1. Training of personnel with duties in the field of public procurement/208
5.1.1. Quantitative and qualitative aspects regarding the need for training in public procurement/213
5.1.2. Prospects for the training of public procurement experts in universities/226
5.1.3. Development of internal procedures for the bidding process activities/238
5.1.4. The rigor of establishing the public procurement expert profession/245
5.1.5. Creation of public procurement clusters/250
5.2 Digitization of company activities/251
5.2.1. Digitization of the bidding process/254
5.2.2. Use of electronic signature/263
Conclusions/267
Bibliography/285
Appendices /319
List of abbreviations/335
List of tables/337
List of figures/338
List of annexes/341
The present paper is based on the doctoral thesis "Strategy of concluding a business under the conditions of compliance with public procurement rules", which I defended at the Academy of Economic Studies in Bucharest, on May 22, 2024. The book reproduces, from the thesis, the chapters of great relevance for those who work in the field of public procurement.
The research theme was inspired by the activity I carried out in this field, for more than 20 years, during which time I worked for tenderers, for contracting authorities, in the control of public procurement and in the resolution of appeals. At the same time, I was a trainer at various postgraduate programs, conferences, courses, training sessions, but also the author of dozens of specialized articles.
Throughout this period, we found that many companies lose the opportunity to win the award of public procurement contracts due to mistakes that could have been avoided, if they had not lacked a dedicated business strategy, respectively a bidding strategy.
Designing such a strategy increases the chances of firms to receive the execution of a public sector contract.
Starting from the business table known as the "Business Model Canvas (BMC)", designed by Alexander Osterwalder and Yves Pigneur, through this work I encourage its use and indicate a way to adopt a strategy for the participation of companies in public procurement.
The book is of interest, on the one hand, to entrepreneurs, who, by using the BMC table, can form an overview of the bidding and, then, the execution of the contract, but also foresee the problems they may face.
At the same time, it is also useful to contracting authorities, as well as to third-party institutions involved in public procurement, in order to improve the level of training of personnel with duties in this field. Last but not least, it reveals the opportunities for universities to develop bachelor's, master's and postgraduate programs in the field of public procurement.
The research theme was inspired by the activity I carried out in this field, for more than 20 years, during which time I worked for tenderers, for contracting authorities, in the control of public procurement and in the resolution of appeals. At the same time, I was a trainer at various postgraduate programs, conferences, courses, training sessions, but also the author of dozens of specialized articles.
Throughout this period, we found that many companies lose the opportunity to win the award of public procurement contracts due to mistakes that could have been avoided, if they had not lacked a dedicated business strategy, respectively a bidding strategy.
Designing such a strategy increases the chances of firms to receive the execution of a public sector contract.
Starting from the business table known as the "Business Model Canvas (BMC)", designed by Alexander Osterwalder and Yves Pigneur, through this work I encourage its use and indicate a way to adopt a strategy for the participation of companies in public procurement.
The book is of interest, on the one hand, to entrepreneurs, who, by using the BMC table, can form an overview of the bidding and, then, the execution of the contract, but also foresee the problems they may face.
At the same time, it is also useful to contracting authorities, as well as to third-party institutions involved in public procurement, in order to improve the level of training of personnel with duties in this field. Last but not least, it reveals the opportunities for universities to develop bachelor's, master's and postgraduate programs in the field of public procurement.
THE AUTHOR
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