The public procurement system in Austria is a complex process, governed by a set of legal and regulatory frameworks designed to ensure transparency, competition, and fairness. This system covers government entities at all levels, including the federal government, provinces, municipalities, and public institutions. In total, 7,759 institutions operate within Austria’s public sector. This article aims to provide an overview of the complex topic and assist private companies.
In contrast to the private sector, where clients can freely choose the company executing a contract, public sector contracts are awarded through tenders. There are two primary procurement procedures: direct award, which applies to contracts under €100,000, and formal tendering, which is required for contracts exceeding this threshold. Direct awards allow the contracting authority to choose a qualified company without a formal process, like private sector practices. The tendering process, however, is more regulated and formal.
The public procurement process in Austria requires close collaboration between various institutions, making it highly demanding for all involved parties. The complexity of the requirements means that precise implementation is essential. Key players in Austria’s public procurement system include the Bundesbeschaffung GmbH (BBG), which coordinates procurement processes and offers a platform called the BBG E-Shop, which is used for direct ordering of items and services by public institutions from private companies. Another important player is ANKÖ, which is a central procurement agency in Austria that offers a comprehensive tendering platform for public procurement, aiming to make the publication and management of contracts efficient and transparent. It streamlines the process by offering an overview of current tenders, enabling companies to submit bids, and reducing bureaucracy for both public buyers and private suppliers. The DHL Express AT team has already developed a Tender Management Process with a focus on ANKÖ, which can assist private companies in successfully navigating this platform and is featured in our article "Checklist for Private Companies to Ensure Successful Tender Management in the Austrian Public Sector."
An emerging factor in the development of public procurement is the growing demand for environmentally friendly solutions. The Austrian government is committed to reducing CO2 emissions, and this shift is supported by subsidies and programs promoting sustainability across various sectors, such as the adoption of green technologies and renewable energy sources. This increasing focus on eco-friendly practices is driving transformation within the public sector procurement process. It is advisable for private companies to prioritize sustainability factors, as this will grant them a competitive advantage and contribute to their long-term success.
DHL Express AT not only has extensive experience in providing tailored express logistics solutions across the public sector, but also offers SAF (Sustainable Aviation Fuels), a sustainable alternative to kerosene that significantly reduces CO2 emissions and helps customers lower their Scope 3 emissions. This option is currently available exclusively worldwide through DHL Express. In the public sector, most tenders require logistics services for the efficient delivery of goods, documents, or services. Our expert team offers high-quality logistics solutions while managing the process, ensuring compliance, and enhancing your chances of success. With a deep understanding of the complexities of public procurement, DHL Express AT is well-equipped to help private sector companies navigate the tender process successfully. Therefore, we encourage you to contact us for expert guidance.
