Sustainable Public Procurement and Capability-Dependent Participation: Coordination and SMEs in Agri-Food Supply Chains

This paper investigates how sustainable public procurement (SPP) is operationalised in school catering in the Metropolitan City of Rome and how it reshapes market conditions affecting the participation of small and medium-sized enterprises (SMEs) in the region. While SPP is widely framed as a lever for sustainability and local development, its concrete effects on SME inclusion and supply-chain organisation remain underexplored. Drawing on procurement document analysis and supply-chain reconstruction in the Metropolitan City of Rome, the study examines how sustainability criteria—such as organic quotas, traceability requirements and quality standards—are translated into operational requirements. The findings show that SPP goes beyond the simple performative addition of sustainability requirements to existing markets and actively reorganises market coordination structures and supply-chain relations. Procurement shapes not only what is sourced, but also how logistics, continuity of supply, and coordination are organised across the agri-food chain. SME participation emerges as conditional and capability-dependent rather than automatically enabled by sustainability-oriented procurement. In fragmented agri-food systems, smaller firms often participate indirectly through intermediaries or larger catering operators rather than through direct access to contracts. Rather than interpreting these dynamics as a simple exclusion of SMEs, the paper argues that SPP operates as a form of selective and asymmetrical market-shaping, redistributing participation opportunities unevenly across actors depending on their organisational and coordination capacities. The paper contributes to the literature by conceptualising procurement as a governance instrument whose effects depend on the interaction between procurement architecture, sustainability requirements, and the structural characteristics of the supply base. More broadly, it highlights the importance of aligning sustainability objectives with existing supply-chain capacities and territorial market structures when designing procurement policies.