ABSTRACT

Measuring the effectiveness of public procurement is challenging because procurement policy is often used to achieve different, changing objectives besides that of maximizing value for money. Cost and Savings Measurement and Management (CSMM) plays an important role in the evaluation of public procurement. However, savings measurement faces some special challenges. CSMM has received too little attention from practitioners and academics, making it a topic for future research in particular in the context of public procurement. Overall, the economic benefits of cost savings in procurement are enormous and in public procurement this would provide political leeway to allocate resources. This chapter discusses the framework for the debate of savings in public procurement, a case insight into how CSMM could be implemented in public contracts, the relevance of CSMM in the public sector and insights on the claim that legal procurement procedures are a dilemma situation to CSMM.