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68% of public companies do not comply with procurement legislation.

They fail to comply with the measures on contracts causing damage to competition of more than one billion euros. In Italy almost 30% of contracts are awarded without a tender.

68% of public companies do not comply with procurement legislation.

68% of public companies do not apply the Public Contracts Code. This is what emerged from the annual report by Giuseppe Birenza, president of the Authority for the supervision of public contracts for works, services and supplies, presented to the Senate. The investee companies subtract a market share worth 1,2 billion euros every year from free competition. There are around 5 thousand companies that disregard the regulations on procurement, including communication obligations, despite being required to correctly apply these provisions . The main problem remains the awarding of contracts. According to the president of the Authority, the scarce management capacity "often leads to an extension of the completion times of the works as well as to exacerbate the level of litigation, already significant under normal conditions". Public works represent 8% of the GDP and employ 1,5 million workers. In 2010, the overall demand for public contracts (for amounts exceeding 150 euros) increased by 9,6% compared to the previous year. But it is a sector with too many distortions which do not make this increase effective: about a third of the contracts are awarded in Italy without a tender, the costs are therefore excessive and the competition limited. It is necessary to simplify the procurement market and offer clear and transparent rules. In this sense, Brienza urges the contracting authorities "to have prior knowledge of the mechanisms used in the procedures completed in order to then allow the necessary corrective measures to be taken, in order to correctly award the contracts and their correct execution".

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