The topic of this paper is the analysis of public procurement with an emphasis on the example of the local self-government unit, the City of Vrgorac. Public procurement is a key aspect of public investment: it is an important element in strengthening the single market and fostering economic development in Europe. The main goal of the implementation of the public procurement procedure is to ensure economically justified spending of money. The aim of this paper is to determine the importance of implementing the public procurement procedure in accordance with the Public Procurement Act, in order to prevent favoritism and criminal acts, to ensure equal market conditions and increase transparency in procedures. All procedures must respect the principles of EU law, in particular the freedom of movement of goods, freedom of establishment and freedom to provide services, and the principles arising from them, such as the principle of equal treatment, non-discrimination, mutual recognition, proportionality and transparency. Competition, confidentiality and efficiency must also be respected. This paper will elaborate the procedure of planning the procurement, preparation and implementation of the procedure until the conclusion of the contract with the contractor based on the selected example, ie the implementation of the Energy Efficiency procedure of the Kindergarten Pčelica Vrgorac.