State of Public Procurement 2026 Report

Pressures and Priorities Reshaping Public Procurement Right Now

Public sector procurement teams are doing more with less. Rising costs, budget reductions, and growing compliance demands are converging at a time when most teams are small, stretched, and still running largely on spreadsheets and email. The 2026 State of Public Procurement report from Euna Solutions draws on survey data from 100 public sector procurement professionals to examine the tools they rely on, the challenges slowing them down, and the priorities driving their work.

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This report is based on insights from 100 public sector procurement professionals across North America who are directly responsible for sourcing, contracting, supplier management, and spend oversight. Their perspectives reflect the operational realities of organizations managing fiscal pressure, workforce constraints, and rising compliance expectations.

Download the 2026 State of Public Procurement report to explore:

  • Why economic uncertainty has been the top external challenge for three consecutive years and what that means for how teams plan
  • How manual processes and disconnected tools are limiting procurement team performance
  • What the data reveals about supplier management, post-award visibility, and contract compliance confidence
  • The strategic positioning gap and what it means for procurement’s seat at the executive table
  • Where AI adoption stands in public sector procurement and what is holding teams back
  • Five actions procurement leaders can take now to close the gap between intent and infrastructure
The Pressure on Public Sector Procurement Teams Has Never Been Greater

Public sector procurement teams are navigating one of the most demanding environments in recent memory. Rising costs of goods and services, budget reductions, and growing regulatory requirements are converging at a time when most teams are small, stretched, and still relying on spreadsheets and email to hold everything together.

The challenge is not a lack of awareness. Procurement leaders have a clear view of what needs to change: 50% cite streamlining and automating processes as their top priority, and 40% want stronger cost reduction strategies. The gap is between intent and infrastructure. The tools most organizations rely on were not built for the complexity they now face.

The result is a widening imbalance. Expectations are rising, workloads are expanding, and the operational infrastructure supporting these teams has not kept pace. The 2026 State of Public Procurement report examines where that gap is most visible and what organizations can do about it.

Our research highlights several trends shaping the future of public sector procurement:

  • 46% of respondents continue to manage procurement primarily through spreadsheets, email, or paper.
  • 59% do not formally assess supplier performance or only review it when problems arise.
  • 50% say procurement is viewed as a value driver in their organization — but the other half disagrees or is unsure.
  • 41% are not confident their organization is prepared to adopt AI responsibly.
  • Streamlining and automating processes have ranked as the #1 priority for three consecutive years, from 2024 to 2026.
Economic Uncertainty Has Become the Default Setting

Rising costs of goods and services have been the top external challenge for three consecutive years. Budget reductions and flat funding follow closely, compressing what teams can realistically accomplish with existing resources.

Manual Processes and Internal Friction Are Slowing Operations

46% of teams still manage procurement through spreadsheets, email, or paper. Only 7% operate on a dedicated cloud-based eProcurement platform. Every unplanned request lands directly on the people.

Supplier Management Is Largely Reactive

59% of respondents either do not formally assess supplier performance or only review it when problems arise. Fewer than half are confident in their ability to monitor contract compliance after award.

Procurement’s Strategic Seat Is Still Uneven

50% of teams say procurement is viewed as a value driver. The other half disagrees or is unsure. 55% can only sometimes provide accurate reporting and analytics to leadership on demand.

AI Interest Exists, But Readiness Does Not

39% of respondents want AI integrated into their procurement workflow. But 41% are not confident their organization is prepared to adopt it responsibly. The infrastructure gap comes first.

Frequently Asked Questions

The 2026 State of Public Procurement report is a research-based publication for public sector procurement professionals, including Procurement Directors, Chief Procurement Officers, Purchasing Managers, Contract Administrators, and City and County Managers. It examines the tools, challenges, and priorities shaping public sector procurement today and provides five actionable recommendations for modernizing operations.

The report includes five specific actions procurement leaders can take to close the gap between their goals and their current infrastructure. Each recommendation is grounded in survey data from real public sector practitioners, from replacing spreadsheets to building supplier performance reviews, improving reporting capabilities, and preparing for AI adoption.

Unlike general guides, this Euna Solutions report is based on firsthand survey data from 100 public sector procurement professionals. It focuses specifically on the operational and technology realities facing these teams, including process limitations, evolving compliance demands, and the emerging role of AI in public sector procurement.

“Having the Achievement of Excellence in Procurement Award, being able to say that our e-procurement solution played into that, helps build credibility. It shows that we’re always trying to do things smarter, not harder.”

Jennifer Hyde

Procurement Manager, Indian River County, Florida

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