Traditional Procurement versus Public-Private Partnership: A Comparison and Synergies with Focus on Cross-Border Contracts

Ludmila Štěrbová, Jaroslav Halík, Pavla Neumannová


Government purchases represent an important part of the world economy. Selling
to the public sector is a key business activity for certain industries or service
providers. The public procurement segment’s attractiveness is also underlined
by the security of payment and large extent of supplies. With globalisation as
a worldwide phenomenon, businesses do not have to rely only on domestic
institutions; they can enter international B2G markets as well. However, the
ability of private companies to do business with foreign governments is limited by
various national legislations as governments settle the procurement regulation
with respect to their national interests. In the following overview article, the
authors analyse the two main and typical procurement types – traditional
procurement and public-private partnership – with regard to recent development
trends, international regulatory framework, opportunities and barriers to entry for
European businesses. The main goal of the paper is to define, based on this analysis,
the main differences and possible synergies of the traditional procurement and
public-private partnership while focusing on cross-border contracts. This paper
can be regarded as useful for business, academia as well as the public sector.


public procurement, public-private partnership, cross-border contracts, cross-border bidding

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