EU proposes overhaul of public procurement rules with €650m savings predicted

EU proposes overhaul of public procurement rules with €650m savings predicted
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The European Commission has proposed a new EU-wide regulation to simplify public procurement rules and create a single digital system for public tenders.

Public procurement covers how public authorities buy goods and services, from transport and energy systems to schools and healthcare, the Commission said in a statement on Wednesday.

It noted the overhaul would consolidate three existing public procurement directives and rules spread across sector-specific laws into one directly applicable regulation, and reduce the number of procurement procedures to three from five.

Public buyers would be given more flexibility to negotiate with applicants during procedures, and a new “innovation procedure” would be introduced for developing and buying solutions not yet available on the market.

The changes are expected to deliver annual administrative savings of €650 million, made up of an €80 million reduction in burdens for public buyers and €570 million for companies bidding for contracts.

Single platform and new award criteria

A central part of the plan is an integrated digital procurement marketplace linking national eProcurement platforms — online systems used to publish tenders and submit bids — across EU member states, according to the Commission.

Companies would be able to take part in procurement procedures and submit tenders across the EU through any connected platform under a “once-only” principle intended to avoid repeated requests for the same information.

Under the proposal, the “best price-quality ratio” would become the standard way to award contracts, with quality criteria accounting for at least 30% of the score, or 50% for labour-intensive contracts, subject to a “comply or explain” requirement.

The Commission said the proposal would also allow — and in some cases require — public buyers to address risks linked to security and public safety, sensitive information, cybersecurity and “undue third-country influence”.

The proposed regulation will now be negotiated by the European Parliament and the Council of the European Union before it can be adopted and enter into force.


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