Sustainable public procurement models

The project aims to examine and explain how to design innovative, competitive and sustainable procurement models capable of meeting climate, resource and environmental challenges.

Public procurement processes account for one-third of public spending in OECD countries, and can therefore play a key role in efforts to achieve sustainability.

Until now, public procurement has essentially been rooted in the prevailing business model, i.e. buying and selling goods and services. But a trend has recently developed towards another type of transaction, known as “functional sales”, in which the purchaser pays for a function – a result – instead of a good. This means it is in the seller’s interest to make sure that the function lasts as long as possible.

The project, which is interdisciplinary, brings together leading researchers in law, economics, social sciences and engineering from Stockholm School of Economics and Linköping University.

The aim is to study and explain how innovative, competitive and sustainable public procurement models can be designed in relation to regulatory frameworks and organizational requirements so they help to promote prosperity for customers, businesses and communities.