The public procurement system reform in Latvia envisages a significant transformation of the system, centered on transparency, traceability, and the strengthening of public trust. Given that public procurement constitutes a substantial part of the economy – with the value of awarded contracts reaching nearly 8 billion euros in 2025 – the primary goal of the reform is to ensure that every euro invested publicly is traceable and transparent to the public. Therefore, additional transparency mechanisms are being reinforced to guarantee broad accessibility of information regarding the investment of funds across all procurement stages starting from the very first euro, while simultaneously reducing administrative burden and introducing a more flexible approach to procurement organization.
Within the framework of the reform, the operational capacity and flexibility of contracting authorities in organizing procurements are being expanded, while balancing this flexibility with enhanced transparency requirements. Procedures will become simpler and less bureaucratic; however, the availability of information to the public will be broader and more systematic. Even below the thresholds set by the European Union, the obligation to publish information regarding procurements is maintained and strengthened. To ensure full transparency, contracting authorities will be required to publish procurement plans, while local governments will have to provide this information centrally regarding their institutions and state-owned enterprises.
Furthermore, the obligation to publish information on concluded contracts, their actual execution, and payments made is maintained and strengthened. In addition, it is planned to disclose information on the total amount of payments made within transactions even in cases where the transactions are not based on written contracts. Such regulation will ensure that the flow of public funds is fully transparent regardless of the form of the transaction.
A significant innovation is the development of a reference pricing tool, which would allow for the comparison and evaluation of contract price consistency with the market situation. This will strengthen financial discipline and provide additional tools for supervisors and the public to assess the utility of public fund investments.
In turn, the oversight model of the procurement system is based on data and key performance indicators (KPIs), transitioning to the principle of post-audit or ex-post monitoring. The Procurement Monitoring Bureau, as the central management authority, will maintain the Electronic Procurement System and the Publication Management System, as well as provide an annual report to the Cabinet of Ministers on the operation of the public procurement system. This will ensure a systematic evaluation of the system and analysis of the performance of contracting authorities.
The reform also aims to reduce administrative burden and shorten the duration of procurement processes by approximately 25%. Simultaneously, the implementation of the reform is linked not only to changes in the regulatory framework but also to a shift in practice and institutional culture, as the quality and efficiency of the procurement outcome will depend on both the legally established framework and the conduct of the contracting authorities.