Public procurement is often treated as a technical process for buying goods and services. Martin Schiefer, chief executive of Austrian law firm Schiefer Rechtsanwälte, argues that it should also be used to strengthen supply chains, support innovation and build industrial capacity.
In an interview with LEADERSNET, Schiefer said public authorities should look beyond the lowest initial price when choosing suppliers. He believes contracts should reward businesses that can help mak...
Continue Reading This Article
Enjoy this article as well as all of our content, including reports, news, tips and more.
By registering or signing into your SRM Today account, you agree to SRM Today's Terms of Use and consent to the processing of your personal information as described in our Privacy Policy.
e essential supplies more secure and contribute to a stronger domestic economy.
That approach does not mean abandoning competition, he said. Rather, procurement rules should be designed to give buyers room to consider resilience, quality and long-term value alongside cost. He favours more focused regulation, with clearer priorities and less administrative burden.
Schiefer’s route into procurement law was unconventional. He told LEADERSNET that he worked as a museum guide while studying law, and later encountered European procurement rules through work connected with a European election campaign in Brussels. A university report on the subject led to a specialism that, he recalled, was initially regarded with scepticism. His firm now has 50 staff across six locations in Austria, advising on areas including defence, research, healthcare, housing, infrastructure and digital sovereignty.
The scale of public spending gives procurement considerable influence. Austria’s Federal Ministry for Innovation, Mobility and Infrastructure puts annual public purchasing at about €70 billion on its innovation-procurement page. A separate ministry release gives a figure of approximately €67 billion, illustrating that estimates vary. Either figure represents substantial buying power that can help bring new products and services into use.
The ministry’s Public Procurement Promoting Innovation programme is intended to help public bodies use that demand to support innovative solutions. It offers advice and training to procurers, and helps connect public organisations with start-ups and other businesses. A public-sector contract can provide a new supplier with an early customer and a practical setting in which to demonstrate its technology.
The European Commission likewise describes procurement as a means of delivering value for taxpayers while supporting competition, transparency and sustainable or innovative spending. Its assessment of the EU rules points to continuing concerns about complexity and legal clarity, even as transparency has improved. The Commission has also noted that environmental, social and innovation criteria are being adopted unevenly, while lowest price remains the only award criterion in many procedures.
In Austria, procurement is not an unrestricted choice of supplier. The government’s Unternehmensserviceportal says covered public authorities generally have to follow formal procedures based on fair competition, equal treatment and non-discrimination. Businesses, including small firms and sole traders, can bid; the process may include published tenders, questions from bidders, evaluation and a review route for certain decisions. The applicable procedure depends on the contract and its value, with higher-value tenders subject to EU-wide rules.
Schiefer sees supply-chain transparency as part of making that system more strategic. Buyers need to understand where products and components come from, he told LEADERSNET, particularly when disruption or rising raw-material costs expose weaknesses. In his view, procurement should favour suppliers able to contribute to resilient systems, rather than simply selecting a low-cost offer built around older methods.
The same principle, he argued, could apply to rail infrastructure, food, schools and military research. Public contracts can help sustain industrial expertise and encourage investment, provided the criteria are clear and the process remains open. He has also stressed that supporting European or Austrian industry need not amount to protectionism, but should preserve fair conditions for businesses competing in the market.
A 2026 Austrian government declaration on “Made in Europe” sets out a similar policy direction, proposing greater weight for quality, life-cycle costs, innovation and security of supply in major purchasing decisions. It presents public spending as a way to connect investment with jobs, research and industrial capability, while saying that measures must remain within applicable legal and economic requirements.
Defence procurement makes the balance between openness and security particularly clear. The European Commission says the rules allow safeguards for classified information and security of supply, while also seeking transparency and opportunities for cross-border competition. It identifies administrative, legal and certification hurdles as barriers for smaller businesses, and recommends clearer procurement plans, proportionate criteria and greater scope for SMEs to participate in research and innovation.
For Schiefer, the future system should be faster and easier to navigate, with decisions that are explained and predictable rules for businesses. International standards remain important, he told LEADERSNET, but should not create unnecessary bureaucracy or leave firms uncertain as policy shifts.
His broader case is that transparency and strategic purchasing need not be opposing aims. Public authorities can maintain open competition while taking account of resilience, regional considerations and environmental, social and governance factors. Done well, procurement can turn public expenditure into a tool for lasting value rather than a contest determined by price alone.
Source: Noah Wire Services
