The Public Procurement Authority and the Turkish Competition Authority Expand Their Cooperation For AI-assisted Competition Analysis in Public Procurement (5.11.2024)

The current cooperation protocol between the Public Procurement Authority and the Turkish Competition Authority on the development and protection of competitive environment in public procurements is moving to a new stage. The protocol signed today by the President of the Public Procurement Authority Mr. Hamdi GÜLEÇ and the President of the Turkish Competition Authority Mr. Birol KÜLE expands the cooperation between the two authorities to cover developing AI-assisted tools for detecting competitive risks and possible violations in public procurements as well as conducting joint statistical modeling and analysis work. 

Public procurements constitute a significant part of economic activities throughout the world. According to the OECD data, the share of public procurements in GDP in many countries is about 12-15% and those procurements constitute about 30% of total public expenditure. In Türkiye, while the share of public procurements in GDP is nearly 6%, 36% of central administration budget expenditure consists of public procurement. In this context, establishing a competitive process in public procurement not only ensures efficient use of public resources but also contributes to the well-functioning of price formation in the markets. 

A competitive procurement process ensures a fair and transparent contest environment for undertakings in addition to the efficient use of public resources. However, procurement cartels, which prevent competition in procurement processes and which occur in several forms such as bid rigging or allocating procurements, may undermine the process causing a public loss. Under the scope of the new cooperation between the two authorities, which is signed today, the Turkish Competition Authority and the Public Procurement Authority will use AI-assisted technologies to fight such cartels. Within this framework, it is planned especially to strengthen data analysis in procurement processes and develop innovative tools to detect possible violations ex officio.

While the joint work of the Turkish Competition Authority and the Public Procurement Authority shows the determination of the two authorities in the protection of competition in public procurements, efficient use of public resources and ensuring fair competitive conditions in a sustainable manner in procurement markets, this step will also contribute to Türkiye gaining a strong place among the world economies with its competitive and transparent procurement system.  

Respectfully announced to the public.