European Commission proposes new Public Procurement Regulation to simplify and modernise EU rules

The European Commission has adopted a proposal for a new Public Procurement Regulation designed to simplify and modernise the European Union's public procurement framework. The proposed reform consolidates the three existing public procurement directives and various sector-specific procurement provisions into a single, directly applicable Regulation. This consolidation aims to establish a more coherent and predictable framework, reducing the number of available procurement procedures from five to three.

The proposal introduces greater flexibility for public buyers, allowing for negotiations with applicants during procedures and encouraging market consultations. It also establishes an innovation procedure specifically for developing and acquiring solutions not yet available on the market. To streamline administration, the reform proposes an integrated digital procurement marketplace. This marketplace will interconnect Member States' eProcurement platforms and apply the "once-only" principle, enabling companies to submit tenders across the EU without repeatedly providing the same information and documentation.

Under the proposed rules, the Best Price-Quality Ratio (BPQR) will become the standard award method. Quality criteria must account for at least 30% of the evaluation, rising to 50% for labour-intensive contracts, subject to a "comply or explain" mechanism. This requires contracting authorities to systematically evaluate environmental, social, innovation, security, and resilience factors alongside price.

Addressing geopolitical and security concerns, the proposal enables public buyers to mitigate risks related to cybersecurity, sensitive information, and third-country influence. It introduces provisions on resilience and supply chain security for contracts involving entities linked to critical infrastructure. Furthermore, a horizontal European preference framework is introduced, allowing the Commission to restrict procurement coverage for third countries that fail to grant reciprocal market access or where necessary to protect economic security.

The proposal, which responds to recommendations in the Draghi and Letta reports as well as shortcomings identified by the European Court of Auditors, is expected to generate €650 million in annual administrative savings. The draft Regulation will now undergo negotiations by the European Parliament and the Council of the European Union before its formal adoption.