PUBLIC PROCUREMENT - Lexnet

1. Executive Summary
The present public procurement market in the EU amounts to more than 5.000 million DKK. The
size of this market alone makes it interesting to look at the opportunities for Danish companies
abroad. However, only a very small part of this gigantic market is performed as cross border
contracts.
The lack of integration in procurement markets played a key role when the Commission initiated
a broad European debate on the future of public procurement in the EU, i.e. the Green Paper
(1997) and later the Communication (1998). The debate has centred an immense focus on SMEs.
What are their opportunities, their obstacles? How can SMEs be stimulated to seek new
procurement markets abroad?
In a Danish context, SMEs, in particular, play a vital role due to their dominant business structure.
With this background, the Danish Competition Authority has conducted a study into the experiences,
possibilities and barriers of Danish SMEs in relation to EU-procurement abroad. The
target is clear; by providing an insight into SMEs and EU-procurement, the Competition Authority
seeks to take on initiatives that stimulate a more fruitful EU-procurement climate. This will,
hopefully, lead to more Danish companies participating in procurement contracts in the Member
States.
The scope of the study is fivefold. Firstly, to provide information on which type of Danish companies
have experience in EU-procurement abroad, and which type of companies that do not.
Secondly, to provide information on future perspectives for Danish SMEs. Thirdly, to identify the
most important barriers for a higher participation in tenders abroad. Fourthly, to investigate views
and experiences of Danish companies on complaints over presumed legal breaches of the procurement
directives. And lastly, to bring forward concrete recommendations dealing with the perspectives
and barriers for Danish SMEs in the area of procurement contracts abroad.
The study is the first quantitative of its nature in Denmark, and is based on two telephone surveys
involving more than 2.000 interviews with Danish companies.
What are the conclusions?
The report concludes that Danish companies expect a higher degree of participation in EUprocurement
abroad. These positive assessments do not only stem from companies that presently
have sales primarily in the public sector in Denmark, but include to an even larger extent the
companies that are already engaged in EU-procurement abroad.
Thus, the analysis show that amongst companies with no experiences with procurement abroad,
some 10% have expectations to move into these markets. This would lead to an increase of active
Danish companies, in total, by some 30%. Furthermore, 47% of companies that are already active
on procurement markets abroad have expectations of more exports.
The analyses have also given a comprehensive insight into the companies that are particularly
targeted towards public contracts abroad. Despite the fact that larger companies have a higher export-rate
than smaller companies, the majority with exports to the public sector abroad (54%) are
to be defined as SMEs (those with less than 100 employees). Furthermore, 64% of these companies
are based in only three main lines of business – mainly production businesses within the
sectors of iron and metal, financial and business services and furniture.
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