Public procurement in Italy, meaning tenders for works, services, and supplies in ordinary sectors, amounted to €200 billion in 2023, the equivalent of 10% of the nation’s GDP.
In this country, unlike what EU Directive 2014/24 envisioned, procurement has never truly been considered an active policy tool to foster development and innovation. Instead, it has mainly been associated with the objectives of cost containment and anti-corruption.
Two national-level players in procurement stand out: Consip and ANAC. The former was established in 1997 to manage the IT services of what was then the Ministry of the Treasury (hence the name, an acronym for Concessionaria Servizi Informativi Pubblici, i.e. Public Information Technology Services Concessionaire). This organization later became the operational arm of various spending review measures starting in 2012. ANAC, formerly known as AVCP (Autorità per la Vigilanza sui Contratti Pubblici, i.e. Authority for the Supervision of Public Contracts), the public procurement market regulator, was transformed into the National Anti-Corruption Authority (ANAC) in 2014.
Today in Italy, there are 22,013 contracting authorities, of which 4,554 are certified (i.e., meeting the necessary requirements to manage tenders); 533 are procurement centers (i.e., structured entities managing tenders on behalf of smaller administrations); 32 aggregating entities (Consip, one per region, and other entities including cities, municipal unions, and consortia); and 60 certified e-procurement platforms. The new Public Procurement Code, part of the reforms tied to Italy’s National Recovery and Resilience Plan (PNRR), has further promoted the qualification process for entities in charge of tenders. However, tenders are only one phase of the procurement process, sitting between needs assessment and market analysis upstream and contract management downstream.
In the public sector, unfortunately, most of the emphasis is placed on the tendering phase, mainly because it is strictly governed by legislation and shaped by a deeply rooted culture of formalism. But planning and contract management are becoming more relevant, especially for complex purchases, such as those involving healthcare or service delivery. (Think, for instance, of catering services for schools, where defining demand and setting down strategic goals like sourcing or waste reduction are essential).
For standardized purchases, centralized procurement is mandatory. The goal is to ensure an optimal price/quality ratio by leveraging economies of scale and specialization, ultimately escalating the efficiency of public spending. This obligation means that purchases must be made through framework agreements or contracts negotiated by Consip or other regional aggregating entities, unless better conditions can be found on the open market (conditions which must be proven).
About 20% of purchases made by municipalities follow the centralized procurement approach, particularly for interchangeable goods and services such as mobile and landline services, electricity, gas, software licenses, maintenance and repairs of buildings, and road vehicles. The remaining share (around €29 billion) is handled independently.
Over the years, both the monitored volume of spending covered by Consip's centralized tools (€80 billion in 2023) and the executed spending through those tools (€27 billion) have increased. However, the difference (over €50 billion) shows that local authorities retain a considerable degree of autonomy in their purchasing choices, often turning to the open market or other procurement centers.
As part of a study commissioned by ASMEL (an association representing over 4,500 local authorities, mainly small and medium-sized entities), SDA Bocconi investigated how and why public entities, particularly municipalities, either use Consip’s tools or opt for independent procurement.
Data from ANAC, the Ministry of Economy and Finance (MEF), and the Italian National Institute of Statistics (ISTAT) reveal a high degree of variability in the use of Consip tools, depending on:
Based on the analysis of available databases, the research found that per capita spending in 2023 on certain product categories (such as gas, fuel, building maintenance, and meal vouchers) was lower in municipalities that did not join the centralized purchasing agreements. This is often due to the fact that Consip tools define product and service standards that are more aligned with the needs of large municipalities. Moreover, the Consip framework typically serves to establish the maximum prevailing price (a so-called “signalling” function), which allows smaller municipalities to negotiate better quality-to-price ratios that are more suited to their specific needs. A sample analysis—first through a questionnaire administered to 72 municipalities with fewer than 50,000 inhabitants, and then via focus groups with procurement managers—confirmed that Consip tools, i.e., centralized national procurement frameworks, are adopted when they are truly cost-effective, especially considering the added benefit of streamlining administrative procedures. Overall, the research showed that municipalities are capable of selecting the most convenient solutions on a case-by-case basis.
Optimizing spending is essential to help any organization function properly, and even more so for public administrations. However, the study highlights that a one-size-fits-all approach does not work— it’s simply not enough.
More than ten years after centralized procurement obligations were introduced, it’s time to identify governance models that are better suited to the diverse needs of both large and small local authorities. The latter not only make up the majority of all urban centers, but also play a strategic role in the national economy. Consider this: 41% of private-sector employees and enterprises and 39% of the country’s added value are located in municipalities with fewer than 20,000 inhabitants (source: CGIA Mestre study for ASMEL).
Finally, we cannot overlook the key role procurement plays in strengthening the economy, at a local level too. Procurement should help counteract the depopulation of small towns and contribute to broader economic development and social inclusion goals. These aims are clearly embedded in EU Directive 2014/24. The new Public Procurement Code (Legislative Decree 36/2023) facilitates progress in this direction through its emphasis on outcomes and other guiding principles. But this will require greater awareness, proper policymaking (also at the regional level) and stronger local analytical capabilities and managerial expertise.
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