Evaluating the value for money in procurement for EU-funded projects: the perspectives of Slovak regional and local authorities

Abstract

Abstract Awarding public contracts using evaluation criteria that consider price and quality (MEAT) rather than the lowest price allows contracting authorities to pursue broader societal goals, thereby maximising the potential of value for money. This potential becomes even more important when procuring contracts funded by European Structural and Investment Funds (ESIF), which aim to promote environmental sustainability, encourage innovations, and support small and medium-sized enterprises. Despite this, there is a limited understanding of how public authorities adopt MEAT award criteria in procurement contracts co-funded by ESIF resources. Therefore, this paper investigates the effect of ESIF on adopting MEAT in the procurement practices of Slovak regional and local authorities. Using a unique dataset of below and above-threshold contracts, we find a positive effect of ESI co-funding on adopting MEAT criteria. However, this positive effect is significant only when projects are procured using more flexible and straightforward below-threshold procurement procedures. Accounting for prior experience and challenges of complying with above-threshold procurement procedures, the findings underline the importance of organisational capacity in navigating through burdensome procurement and ESIF regulations to obtain the best value using taxpayers’ money.