Enforcing Sustainability in Public Procurement through Effective Contract Management – Policy Brief Series

Jul 29, 2024 | News, Policy Briefs

1. Continuing the SAPIENS Policy Brief Series with a Focus on Contract Management for SPP

Sustainable public procurement (SPP) under the European legal framework focuses on “what to buy” and “whom (not) to buy from” under the rules regulating “how to buy” which leaves post-award predominantly unregulated. However, whether SPP delivers its potential depends on the contract management practices to be employed by public buyers after the contract is awarded. 

Ezgi Uysal’s policy brief titled “Enforcing Sustainability in Public Procurement through Effective Contract Management” delves into how the lack of SPP-oriented contract management practices post-award not only falls short in delivering the potential of SPP but also is detrimental to the principle of equal treatment leaving the contract susceptible to challenges by other economic operators. This policy brief is mainly based on the author’s research on the use of sustainability clauses in public contracts and the interplay between public procurement law and contract law.

This policy brief is directed to public buyers at all levels incorporating sustainability considerations in their procurement contracts. Additionally, it may also prove helpful for public procurement practitioners.

2. Insights from the Policy Brief 

For SPP to reach its full potential, sustainability criteria in procurement contracts should be reinforced through monitoring (soft enforcement), relational/informal enforcement, and termination. Monitoring ensures transparency throughout contract execution but cannot alone guarantee compliance. When non-compliance occurs, relational enforcement tools should be applied, with termination as a last resort if necessary.

Three-Step Enforcement for SPP 

1.Monitoring (Soft Enforcement): Self-declarations, audits, third-party labels and certifications

2.Relational/Informal Enforcement: Meetings, KPIs, Self-cleaning and Corrective Action Plans, Improvement/Staircase clauses, Financial incentives and disincentives

3.Termination (as last resort): Termination clauses, Potential loss of future contracts

Written by Ezgi Uysal

Ezgi Uysal conducts her research at the University of Turin on enforcing sustainability in the performance of public procurement contracts. After graduating from the Faculty of Law at Bilkent University, she was awarded Jean Monnet a scholarship to study EU acquis within the framework of Turkey’s EU harmonization process. She holds a master’s degree from Leiden University in European and International Business Law, where she graduated as valedictorian. During her studies in Leiden, she investigated whether the EU Public Procurement regime was in line with the UNGPs on Business and Human Rights.

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