New EU-rules on public procurement - ensuring better value for money
Competition
New EU-rules on public procurement will ensure better quality and value for money when public authorities buy works, goods or services, thanks to new award criteria which will put more emphasis on quality, environmental considerations, social aspects and innovation. The new rules will also make it easier for small and medium-sized firms to bid and include tougher rules on subcontracting.
Public procurement rules govern the way public authorities buy goods, works and services by establishing the criteria for awarding contracts. They ensure that public purchases are made in a transparent manner so as to ensure fair competition and that contracting authorities get the best value for taxpayers' money.
The new EU public procurement rules are part of a legislative package comprising three directives and one regulation. Two of the directives deal with "classic" and "utilities" public procurement, described in this background note and the third with concession contracts (see separate Q&A). The regulation governs access for non-EU markets to the EU's public procurement market and is still under negotiation.
Public authorities spend around 18% of GDP on works, goods and services, making public procurement a powerful lever for achieving specific societal goals. The public procurement package is one of the 12 priorities in the "Single Market Act I" which aims to unlock the growth potential of the single market and is a key component of the EU 2020 strategy for smart, sustainable and inclusive growth.
See the Q&A below for more information about public procurement, the award criteria, the thresholds, what the new rules will mean for small and medium-sized enterprises, what the European Parliament fought for during negotiations with the member states and the significance of public procurement to the European economy.