We provide evidence of market power in public procurement. Firms with ex-ante similar markups witness a 10\% increase after winning a public procurement contract relative to firms which sell only to the private sector. Parallel with this increase in markups, profits increase as well, while labor share declines. Limited competition in public procurement is a potential driver behind these findings, given that 35% of contracts are awarded in a single bid procurement procedure. We show that single bid procurement consistently incurs higher prices than expected by the procuring body relative to a multi-bid setting, even for standardized products. Similarly, single bid procedures are also associated with an increase in firm-level markups.