The first and most common meaning of the phrase government procurement refers to the government's use of its own public resources and the contracting of various contractors for a public service it is in charge of. Instead of using its own resources for the execution of the service, the state organization purchases the service of the other party in the contractual relationship. Considering the laws in force within the framework of this criterion, it can be said that the following regulations constitute the legal basis of this field.
• Concessions Law of 1910
• Law No. 351 on Higher Education Credit and Hostels Institution dated 16/8/1961
• Law No. 3096 on the Assignment to Entities other than Turkish Electricity Authority of the Generation, Transmission, Distribution and Trade of Electrical Energy dated 4/12/1984
• Law No. 3465 on the Authorization of Enterprises other than the General Directorate of Highways for Construction, Management and Operation of Access Controlled Highways (Motorways) dated 28/5/1988
• Law No. 3996 Pertaining to Outsourcing of Some Investments and Services within the Framework of Build-Operate-Transfer Model dated 8/16/1994
• Law No. 4283 on Establishment and Operation of Electrical Energy Generating Facilities and Regulation of Energy Sales under the Build-Operate Model dated 16/7/1997
• Public Procurement Law No. 4734 dated 4/1/2002
• Law No. 6428 on Construction, Renovation of Facilities and Procurement of Services by the Ministry of Health Under the Public-Private Partnership Model, and Amending Certain Laws and Decrees dated 21/2/2013
Income-generating tender processes, on the other hand, represent an increase in public resources in terms of cash. In fact, public expenditure might be involved in such processes. For example, when a government unit decides to sell an idle vehicle, there is a cash inflow to its budget, but a decrease in movable assets. Therefore, the government unit is spending a resource it has. However, since the purpose here is to generate income from the sale, the title of the classification can be determined in this way.
Below are the laws that regulate income-generating tender processes.
• Law No. 3653 on the Administration and Operation of Yalova Thermal Spas dated 26/6/1939
• State Procurement Law No. 2886 dated 8/9/1983
• Law No. 4046 on the Privatization Practices dated 24/11/1994
• Law No. 4458 on the Customs dated 27/10/1999 (Article 178 ff.)
• Law No. 5335 on the Amendment of Certain Laws and Decrees dated 27/4/2005 (Article 33)
• Law No. 5738 on Fixed Odds and Common Betting Games Related to Sports Competitions Made by Private Law Legal Entities dated 27/2/2008
Tender processes regarding government borrowing are regulated by the 6th article of the Law on Public Finance and Debt Management dated 28/3/2002 and numbered 4749. Bill and bond tenders are held as a domestic borrowing method of the Treasury. There is no direct responsibility or regulation of providing a public service here. An administrative act is regulated for public administration and financing of investments.
Tender processes in which one of the participants is the government are categorized under the first three headings. However, in some laws, tenders made among private entities/persons or by the state's enforcement power in favor of private entities/persons are regulated. The first of these regulations relate to “open auctions”, which is a specific type of sales regulated under Article 274 of the Turkish Law of Obligations and its following provisions. The second is the tender processes regulated in Article 114 of the Enforcement and Bankruptcy Law and its following provisions.
Within the framework of the four distinctions made above, it can be determined that the phrase public procurement defines the procurements established by the government as an administrative procedure in the first three headings. Therefore, as in the dictionary definition, this situation means that a public administration enters into legal relations with more than one bidder.