Optimising Public Procurement Through Circular Practice: The Power of Intermediation

Abstract

The public sector is a key economic player in society with a significant purchasing power and therefore has the potential to promote societal change while maintaining a degree of control over use of public funds, transparency and fairness. However, current public procurement processes largely result in purchasing products and services through a generally more pre-planned and rigid type of process. In this paper we argue that the current public procurement process is not “fit for purpose” for a transition to large-scale circular public procurement which aims to optimise value retention. In order to overcome this, we propose a conceptual framework that could support public organisations in aligning the procurement processes and structures with the value propositions of their own operations. We suggest that intermediation is the key enabler for a transition to a more circular economy by stimulating innovation in public procurement and with an ecosystem perspective.