### in order to ensure the integrity and the visibility of health warnings and maximise their efficacy , provisions should be made regarding the dimension of the warnings as well as regarding certain aspects of the appearance of the tobacco package , including the opening mechanism . the package and the products may mislead consumers , in particular young people , suggesting that products are less harmful . for instance , this is the case with certain texts or features , such as ‘ low - tar’ , ‘ light’ , ‘ ultra - light’ , ‘ mild’ , ' natural ' , ' organic ' , ‘ without additives’ , ‘ without flavours’ , ' slim ' , names , pictures , and figurative or other signs . likewise , the size and appearance of individual cigarettes can mislead consumers by creating the impression that they are less harmful . a recent study has also shown that smokers of slim cigarettes were more likely to believe that their own brand might be less harmful . this should be addressed . ### a minimum size should be set for all health warnings to ensure their visibility and effectiveness , and the opening mechanism of the package should not detract from the health warnings in any way . the package and the products may mislead consumers , in particular young people , by suggesting that products are less harmful . for instance , this is the case with certain texts or features , such as ‘ low - tar’ , ‘ light’ , ‘ ultra - light’ , ‘ mild’ , ' natural ' , ' organic ' , ‘ without additives’ , ‘ without flavours’ , ' slim ' , names , pictures , and figurative or other signs . likewise , the size and appearance of individual cigarettes can mislead consumers by creating the impression that they are less harmful . a recent study has also shown that smokers of slim cigarettes were more likely to believe that their own brand might be less harmful . this should be addressed .


### tobacco smoke contains over 70 substances known to cause cancer ### tobacco smoke contains over 70 substances which cause cancer


### all tobacco products have the potential to cause mortality , morbidity and disability and their consumption should be contained . it is therefore important to monitor developments as regards novel tobacco products . a notification obligation for novel tobacco products should be put on manufacturers and importers , without prejudice to the power of the member states to ban or to authorise them . the commission should monitor the development and submit a report 5 years after the transposition deadline of this directive , in order to assess whether amendments to this directive are necessary . ### all tobacco products have the potential to cause mortality , morbidity and disability and their consumption should be contained . it is therefore important to pre - authorise any novel tobacco products . an obligation to apply for a marketing authorisation for novel tobacco products should be put on manufacturers and importers .


### in order to ensure the integrity and the visibility of health warnings and maximise their efficacy , provisions should be made regarding the dimension of the warnings as well as regarding certain aspects of the appearance of the tobacco package , including the opening mechanism . the package and the products may mislead consumers , in particular young people , suggesting that products are less harmful . for instance , this is the case with certain texts or features , such as ‘ low - tar’ , ‘ light’ , ‘ ultra - light’ , ‘ mild’ , ‘ natural’ , ‘ organic’ , ‘ without additives’ , ‘ without flavours’ , ‘ slim’ , names , pictures , and figurative or other signs . likewise , the size and appearance of individual cigarettes can mislead consumers by creating the impression that they are less harmful . a recent study has also shown that smokers of slim cigarettes were more likely to believe that their own brand might be less harmful . this should be addressed . ### in order to ensure the integrity and the visibility of health warnings and maximise their efficacy , provisions should be made regarding the dimension of the warnings as well as regarding certain aspects of the appearance of the tobacco package , including the opening mechanism . the package and the products may mislead consumers , in particular young people , suggesting that products are less harmful . for instance , this is the case with certain texts or features , such as ' low - tar ' , ' light ' , ' ultra - light ' , ' mild ' , ' natural ' or ' organic ' .


### the current use of different reporting formats makes it difficult for manufacturers and importers to fulfil their reporting obligations and burdensome for the member states and the commission to compare , analyse and draw conclusions from the information received . in this light there should be a common mandatory format for the reporting of ingredients and emissions . the greatest possible transparency of product information should be ensured for the general public , while ensuring that appropriate account is taken of the commercial and intellectual property rights of the manufacturers of tobacco products . ### the current use of different reporting formats makes it difficult for manufacturers and importers to fulfil their reporting obligations and burdensome for the member states and the commission to compare , analyse and draw conclusions from the information received . making it mandatory to list the dangerous or potentially dangerous ingredients would enable greater transparency for the general public in terms of the harmful effects and the composition of tobacco products to be guaranteed , while ensuring that appropriate account is taken of the commercial and intellectual property rights of the manufacturers of tobacco products and fulfils the union’s international obligations contained in the wto treaties , the provisions on technical barriers to trade and agreements on trade - related intellectual property rights .


### ' characterising flavour ' means a distinguishable aroma or taste other than tobacco , resulting from an additive or combination of additives , including but not limited to fruit , spice , herb , alcohol , candy , menthol or vanilla observable before or upon intended use of the tobacco product ; ### ' characterising flavour ' means a distinguishable aroma or taste other than tobacco , resulting from an additive or combination of additives , with the exception of menthol , including but not limited to fruit , spice , herb , alcohol , candy , or vanilla observable before or upon intended use of the tobacco product ;


### in accordance with article 114 of the treaty of the functioning of the european union , a high level of health protection should be taken as a basis , regard being had , in particular , to any new developments based on scientific facts . tobacco products are not ordinary commodities and in view of the particularly harmful effects of tobacco , health protection should be given high importance , in particular to reduce smoking prevalence among young people . ### in accordance with article 114 of the treaty on the functioning of the european union , a high level of health protection should be taken as a basis , regard being had , in particular , to any new developments based on scientific facts . tobacco products are not ordinary commodities and in view of the particularly harmful effects of tobacco , health protection should be given high importance , in particular to reduce smoking prevalence among young people . in order to protect consumers and promote public health , a fundamental objective of the revision of the directive and its monitoring should be to put an end to the consumption of tobacco products , and legislation will continue to be tightened up to achieve this .


### member states shall , based on scientific evidence , prohibit the placing on the market of tobacco products with additives in quantities that increase in an appreciable manner at the stage of consumption the toxic or addictive effect of a tobacco product . ### annex - i shall not contain , based on scientific evidence , additives in quantities that increase at the stage of consumption the toxic or addictive effect of a tobacco product .


### the following nicotine - containing products may only be placed on the market if they were authorised pursuant to directive 2001 / 83 / ec : products with a nicotine level exceeding 2 mg per unit , or products with a nicotine concentration exceeding 4 mg per ml or products whose intended use results in a mean maximum peak plasma concentration exceeding 4 ng of nicotine per ml . 2 . the commission shall be empowered to adopt delegated acts in accordance with article 22 to update the nicotine quantities set out in paragraph 1 taking into account scientific developments and marketing authorisations granted to nicotine - containing products pursuant to directive 2001 / 83 / ec . 3 . each unit packet and any outside packaging of nicotine - containing products below the thresholds set out in paragraph 1 shall carry the following health warning : this product contains nicotine and can damage your health . 4 . the health warning referred to in paragraph 3 shall comply with the requirements specified in article 10 . in addition , it shall : be printed on the two largest surfaces of the unit packet and any outside packaging ; cover 30 % of the external area of the corresponding surface of the unit packet and any outside packaging . that proportion shall be increased to 32 % for member states with two official languages and 35 % for member states with three official languages . 5 . the commission shall be empowered to adopt delegated acts in accordance with article 22 to adapt the requirements in paragraphs 3 and 4 taking into account scientific and market developments and to adopt and adapt the position , format , layout , designand rotation of the health warnings . ### nicotine - containing products that are presented as having properties for treating or preventing disease in human beings , other than through any message specified in paragraph 3 , may only be placed on the market if they were authorised pursuant to directive 2001 / 83 / ec . 1 a . this directive shall not apply to nicotine - containing products authorised pursuant to directive 2001 / 83 / ec . 1 b . for nicotine - containing products where paragraph 1 does not apply , the products may be placed on the market if they comply with this directive 1 c . member states shall ensure that nicotine containing products comply with european union consumer protection , safety and other relevant legislation in force 1 d . no later than 12 months from entry into force of this directive , each member state shall provide the commission with a report on the measures it has taken to implement and enforce the legislation set out in [ new ] annex iv as it applies to nicotine containing products and the effectiveness of those measures . 1 e . member states shall ensure that nicotine - containing products are not sold to persons below the national legal age for purchasing tobacco products . 2 . the commission shall , by 1 april 2017 , carry out a study on nicotine - containing products in consultation with relevant stakeholders and the member states . this study will consider whether there is a need for specific legislation in regard to nicotine - containing products . 3 . each unit packet and any outside packaging of nicotine - containing products which do not fall under the scope of directive 2001 / 83 / ec shall carry the following health warning : this product contains nicotine which is addictive and may damage your health .


### the following nicotine - containing products may only be placed on the market if they were authorised pursuant to directive 2001 / 83 / ec : ### nicotine - containing products may only be placed on the market if they are authorised pursuant to directive 2001 / 83 / ec , taking into account the well - established use of nicotine .


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the esrb , upon its own initiative or following a request by the authority , the council , the european parliament or the commission , may issue a warning declaring the existence of an emergency situation in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### the authority shall act within the scope of directive 2006 / 48 / ec , directive 2006 / 49 / ec , directive 2002 / 87 / ec , directive 2005 / 60 / ec , directive 2002 / 65 / ec and directive 94 / 19 / ec , including all directives , regulations , and decisions based on these acts , and of any further community act which confers tasks on the authority . ### the authority shall act within the scope of directive 2006 / 48 / ec , directive 2006 / 49 / ec , directive 2002 / 87 / ec , directive 2005 / 60 / ec , directive 2002 / 65 / ec and directive 94 / 19 / ec , including all directives , regulations , and decisions based on these acts , and of any further eu act which confers tasks on the authority . the authority shall also act in the field of activities of credit institutions , financial conglomerates , investment firms , payment institutions and e - money institutions , including matters of corporate governance , auditing and financial reporting , provided that such actions by the authority are necessary to ensure the effective and consistent application of the legislation referred to in this paragraph .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations on technical standards and analyse the potential related costs and benefits before adopting draft technical standards . the authority shall also request an opinion or advice of the banking stakeholder group referred to in article 22 .


### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of community law and trust between national supervisors . ### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of eu law and trust between national supervisors .


### without prejudice to the competences of the community institutions , the authority may develop contacts with supervisory authorities from third countries . it may enter into administrative arrangements with international organisations and the administrations of third countries . ### without prejudice to the competences of the union institutions and member states , the authority may develop contacts and enter into administrative arrangements with supervisory authorities , international organisations and the administrations of third countries .


### given the globalisation of financial services and the increased importance of international standards , the authority should foster the dialogue and cooperation with supervisors outside the community . it shall fully respect the existing roles and competences of the european institutions in relations with authorities outside the community and in international forums . ### given the globalisation of financial services and the increased importance of international standards , the authority should represent the european union in the dialogue and cooperation with supervisors outside the union .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european banking authority should be established , along with a european insurance and occupational pensions authority and a european securities and markets authority . ### the european system of financial supervision should be an integrated network of national and european supervisory authorities , leaving ordinary day - to - day supervision of financial institutions at the competent authorities of member states , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and consistent and coherent application of european rules and standards for financial institutions and markets across the european should also be achieved . a european supervisory authority on banking should be established , along with a european supervisory authority on insurance and occupational pensions and a european supervisory authority on securities and markets as well as a joint committee among them . the european systemic risk board , as european authority in macro supervision , completes the esfs . the esfs is a progressive supervisory system that should evolve according to best practices recognised at european and international level . one line to follow may be the establishment of a new level of direct supervision by the authority ; to avoid international distortions and to strengthen the european system of financial supervision , its introduction should be previously and carefully evaluated and considered in order to add value to the supervision of large financial institutions , mainly those whose parent company is based in a third country , above all when they develop wholesale banking or other sensitive activities on the internal market , and those systemic financial institutions once they have been defined and identified at international level . this issue shall be further studied in the first revision of this regulation , which should take place not later than three years from its entry into force .


### upon request from one or more competent authorities , from the commission or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged incorrect application of community law . ### upon request from one or more competent authorities , from the commission , from the european parliament , the council or a member of the banking stakeholder group , or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged incorrect application of union law .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the competent authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the competent authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority shall , pursuant to the legislation referred to in article 1 , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### public contracts may be subdivided into homogenous or heterogeneous lots . for contracts with a value equal to or greater than the thresholds provided for in article 4 but not less than eur 500 000 , determined in accordance with article 5 , where the contracting authority does not deem it appropriate to split into lots , it shall provide in the contract notice or in the invitation to confirm interest a specific explanation of its reasons . ### public contracts may be subdivided into homogenous or heterogeneous lots .


### at least five tenders have been submitted . ### at least three tenders have been submitted .


### without prejudice to national laws , regulations or administrative provisions concerning the remuneration of certain services , the criteria on which contracting authorities shall base the award of public contracts shall be one of the following : the most economically advantageous tender ; the lowest cost . costs may be assessed , on the choice of the contracting authority , on the basis of the price only or using a cost - effectiveness approach , such as a life - cycle costing approach , under the conditions set out in article 67 . ### without prejudice to national laws , regulations or administrative provisions concerning the remuneration of certain services , the criteria on which contracting authorities shall base the award of public contracts shall be the most economically advantageous tender .


### by reference to technical specifications and , in order of preference , to national standards transposing european standards , european technical approvals , common technical specifications , international standards , other technical reference systems established by the european standardisation bodies or ‐ when those do not exist ‐ national standards , national technical approvals or national technical specifications relating to the design , calculation and execution of the works and use of the supplies ; each reference shall be accompanied by the words ‘ or equivalent’ ; ### by reference to specifications and standards , as defined in point 2 of annex viii , with preference given to european and international standards , and only in the absence thereof to national standards ; each reference shall be accompanied by the words ' or equivalent ' ;


### the most economically advantageous tender ; ### the most economically , socially and environmentally advantageous tender ;


### ‘ life cycle’ means all consecutive and / or interlinked stages , including production , transport , use and maintenance , throughout the existence of a product or a works or the provision of a service , from raw material acquisition or generation of resources to disposal , clearance and finalisation . ### ‘ life cycle’ means all consecutive and / or interlinked stages , including production and location of production , transport , use and maintenance , throughout the existence of a product or works or the provision of a service , from raw material acquisition or generation of resources to disposal , clearance and finalisation .


### public procurement plays a key role in the europe 2020 strategy12 as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors13 and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts14 have to be revised and modernised in order to increase the efficiency of public spending , facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union . ### public procurement plays a key role in the europe 2020 strategy as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to enable procurers to make better use of public procurement in support of sustainable development compliance with social and labour rights and other common societal goals and in order thereby to increase the efficiency of public spending , guaranteeing the best possible result in terms of cost - effectiveness and facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to simplify union rules on public procurement , in particular as regards the method used to achieve the sustainability objectives which should be part and parcel of public procurement policy and clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union .


### where the value of a modification can be expressed in monetary terms , the modification shall not be considered to be substantial within the meaning of paragraph 1 , where its value does not exceed the thresholds set out in article 4 and where it is below 5 % of the price of the initial contract , provided that the modification does not alter the overall nature of the contract . where several successive modifications are made , the value shall be assessed on the basis of the cumulative value of the successive modifications . ### where the value of a modification can be expressed in monetary terms , the modification shall not be considered to be substantial within the meaning of paragraph 1 , where its value does not exceed the thresholds set out in article 4 and where it is below 10 % of the price of the initial contract , provided that the modification does not alter the overall nature of the contract . where several successive modifications are made , the value shall be assessed on the basis of the cumulative value of the successive modifications .


### procurement within the meaning of this directive is the purchase or other forms of acquisition of works , supplies or services by one or more contracting authorities from economic operators chosen by those contracting authorities , whether or not the works , supplies or services are intended for a public purpose . ### procurement within the meaning of this directive is the purchase of works , supplies or services via public contracts by one or more contracting authorities from economic operators chosen by those contracting authorities .


### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , also where contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , for instance where the chosen award criteria include factors linked to the production process . as a result , contracting authorities should be allowed to adopt as award criteria either ‘ the most economically advantageous tender’ or ‘ the lowest cost’ , taking into account that in the latter case they are free to set adequate quality standards by using technical specifications or contract performance conditions . ### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , and that contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , include factors linked to the criteria governing the socially sustainable production process and also involve disadvantaged persons . as a result , contracting authorities should adopt as the award criterion ‘ the most economically advantageous tender’ , taking into account that it should refer to quality standards which reflect technical specifications or contract performance conditions .


### where no tenders or no suitable tenders or no requests to participate have been submitted in response to an open procedure or a restricted procedure , provided that the initial conditions of the contract are not substantially altered and that a report is sent to the commission or the national oversight body designated according to article 84 where they so request . ### where no tenders or no suitable tenders or no requests to participate have been submitted in response to an open procedure or a restricted procedure , provided that the initial conditions of the contract are not altered .


### where the economic operator has shown significant or persistent deficiencies in the performance of any substantive requirement under a prior contract or contracts of a similar nature with the same contracting authority . ### where the economic operator has shown significant or persistent deficiencies in the performance of any substantive requirement under a prior contract or contracts of a similar nature .


### an agreement concluded between two or more contracting authorities shall not be deemed to be a public contract within the meaning of article 2 of this directive where the following cumulative conditions are fulfilled : the agreement establishes a genuine cooperation between the participating contracting authorities aimed at carrying out jointly their public service tasks and involving mutual rights and obligations of the parties ; b ) the agreement is governed only by considerations relating to the public interest ; c ) the participating contracting authorities do not perform on the open market more than 10 % in terms of turnover of the activities which are relevant in the context of the agreement ; d ) the agreement does not involve financial transfers between the participating contracting authorities , other than those corresponding to the reimbursement of actual costs of the works , services or supplies ; e ) there is no private participation in any of the contracting authorities involved . ### an agreement concluded between two or more contracting authorities shall not be deemed to be a public contract within the meaning of article 2 of this directive where the following cumulative conditions are fulfilled : the agreement establishes cooperation between the participating contracting authorities for the purpose of the performance of a shared public service task or the pooling of resources in order to enable them to perform their own tasks ; b ) the agreement does not provide for or have any bearing on the award of the contracts which may have to be concluded so that the public service task referred to in point a ) can be performed ; c ) the agreement is concluded only between public authorities , with no participation by a private party with the exception of forms of private participation specific to the participating contracting authorities acting in their capacity as public - law bodies which have been mandated by a member state to perform a public service task , in accordance with the concept of a social enterprise .


### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the award criterion of the most economically advantageous tender , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may only concern the protection of health of the staff involved in the production process or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in accordance with directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services22 and in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as an award criterion the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality of contract performance and , as a result , the economic value of the tender . ### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to life cycle characteristics , such as a specific production process , including for example social and environmental aspects , a specific mode of provision of services , functional or performance requirements aimed at minimising or maximising environmental or social impacts , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . the link to the subject matter rule should be interpreted broadly . accordingly , in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the technical specifications and award criteria , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may for example concern the protection of health of the staff involved in the production process , gender balance , access to vocational training , users ' involvement and consultation , affordability , human rights , ethical trade or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in accordance with directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services22 and in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as technical specifications or award criteria the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality and sustainability of contract performance and , as a result , the economic value of the tender . contracting authorities may also integrate into technical specifications or award criteria social considerations relating to external social costs directly linked to the life - cycle , such as the impacts of production on the surrounding environment and adjacent communities . contracting authorities should lay down in the technical specifications obligations relating to social and employment conditions , health and safety in the workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration awards , collective agreements and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed ; these obligations should also apply in cross - border situations , where workers from one member state provide services in another member state .


### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , also where contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , for instance where the chosen award criteria include factors linked to the production process . as a result , contracting authorities should be allowed to adopt as award criteria either ‘ the most economically advantageous tender’ or ‘ the lowest cost’ , taking into account that in the latter case they are free to set adequate quality standards by using technical specifications or contract performance conditions . ### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , also where contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , for instance where the chosen award criteria include factors linked to the production process . as a result , contracting authorities should adopt as award criteria ‘ the most economically advantageous tender ' .


### where contracting authorities choose to award a contract to the most economically advantageous tender , they must determine the award criteria on the basis of which they will assess tenders in order to identify which one offers the best value for money . the determination of these criteria depends on the subject - matter of the contract since they must allow the level of performance offered by each tender to be assessed in the light of the subject - matter of the contract , as defined in the technical specifications , and the value for money of each tender to be measured . furthermore , the chosen award criteria should not confer an unrestricted freedom of choice on the contracting authority and they should ensure the possibility of effective competition and be accompanied by requirements that allow the information provided by the tenderers to be effectively verified . ### where contracting authorities award a contract to the most economically advantageous tender , they must determine the award criteria on the basis of which they will assess tenders in order to identify which one offers the best value for money . the determination of these criteria depends on the subject - matter of the contract since they must allow the level of performance offered by each tender to be assessed in the light of the subject - matter of the contract , as defined in the technical specifications , and the value for money of each tender to be measured . furthermore , the chosen award criteria should not confer an unrestricted freedom of choice on the contracting authority and they should ensure the possibility of effective competition and be accompanied by requirements that allow the information provided by the tenderers to be effectively verified .


### without prejudice to national laws , regulations or administrative provisions concerning the remuneration of certain services , the criteria on which contracting authorities shall base the award of public contracts shall be one of the following : ### without prejudice to national laws , regulations or administrative provisions concerning the remuneration of certain services , the criterion on which contracting authorities shall base the award of public contracts shall be the most economically advantageous and sustainable tender .


### under article 11 of the treaty on the functioning of the european union , environmental protection requirements must be integrated into the definition and implementation of the union policies and activities , in particular with a view to promoting sustainable development . this directive clarifies how the contracting authorities may contribute to the protection of the environment and the promotion of sustainable development , whilst ensuring that they can obtain the best value for money for their contracts . ### under articles 9 , 10 and 11 of the treaty on the functioning of the european union , environmental protection requirements and social considerations must be integrated into the definition and implementation of the union policies and activities , in particular with a view to promoting sustainable development . this directive clarifies how the contracting authorities may contribute to the protection of the environment and the promotion of sustainable development and how they can use their discretionary power to select technical specifications and award criteria with the aim of achieving sustainable public procurement , whilst ensuring the link to the subject matter of the contract and obtaining the best value for money for their contracts . under article 9 of the treaty on the functioning of the european union , requirements linked to the guarantee of adequate social protection and the fight against social exclusion in defining and implementing its policies and activities should be taken into account when defining and implementing union policies and activities , especially to promote a high level of employment . this directive also specifies how contracting authorities can help promote social criteria and improve employees’ rights whilst ensuring that they can obtain the best social value for money for their contracts by encouraging sustainable public procurement , the respect of social criteria in all stages of the procurement procedure and the respect of obligations established by union and / or national legislation and / or collective agreements in the field of social and employment protection provisions and working conditions or environmental law or of the international social and environmental law provisions listed in annex xi , which are in force in the member state , in the region or locality where the works are to be carried out or the services are to be provided .


### contract performance conditions are compatible with this directive provided that they are not directly or indirectly discriminatory , are linked to the subject - matter of the contract and are indicated in the contract notice , the prior information notice used as a means of calling for competition or the procurement documents . they may , in particular , be intended to favour on - site vocational training , the employment of people experiencing particular difficulty in achieving integration , the fight against unemployment , protection of the environment or animal welfare . for instance , mention may be made , amongst other things , of the requirements — applicable during performance of the contract — to recruit long - term job - seekers or to implement training measures for the unemployed or young persons , to comply in substance with fundamental international labour organisation conventions , even where such conventions have not been implemented in national law , and to recruit more disadvantaged persons than are required under national legislation . ### contract performance conditions are compatible with this directive provided that they are not directly or indirectly discriminatory , are linked to the subject - matter of the contract and are indicated in the contract notice , the prior information notice used as a means of calling for competition or the procurement documents . they may , in particular , be intended to favour on - site vocational training , the employment of people experiencing particular difficulty in achieving integration , the fight against unemployment , protection of the environment , protection of public health or animal welfare . for instance , mention may be made , amongst other things , of the requirements – applicable during performance of the contract – to recruit long - term job - seekers or to implement training measures for the unemployed or young persons , to comply in substance with fundamental international labour organisation conventions , in particular ilo convention 94 , even where such conventions have not been implemented in national law , and to recruit more disadvantaged persons than are required under national legislation .


### in the procurement documents , the contracting authority may ask or may be required by a member state to ask the tenderer to indicate in its tender any share of the contract it may intend to subcontract to third parties and any proposed subcontractors . ### in the procurement documents , the contracting authority may ask or may be required by a member state to ask the tendered to indicate in its tender any share of the contract it may intend to subcontract to third parties and any proposed subcontractors . contracting authorities may refuse subcontractors that don ' t bring added value or that represent a technical , legal or financial risk . contracting authorities may indicate in the tender document the part which may not be subcontracted . procurement documents will stipulate the reasons for this restriction .


### there is considerable legal uncertainty as to how far cooperation between public authorities should be covered by public procurement rules . the relevant case - law of the court of justice of the european union is interpreted divergently between member states and even between contracting authorities . it is therefore necessary to clarify in what cases contracts concluded between contracting authorities are not subject to the application of public procurement rules . such clarification should be guided by the principles set out in the relevant case - law of the court of justice . the sole fact that both parties to an agreement are themselves contracting authorities does not as such rule out the application of procurement rules . however , the application of public procurement rules should not interfere with the freedom of public authorities to decide how to organise the way they carry out their public service tasks . contracts awarded to controlled entities or cooperation for the joint execution of the public service tasks of the participating contracting authorities should therefore be exempted from the application of the rules if the conditions set out in this directive are fulfilled . this directive should aim to ensure that any exempted public - public cooperation does not cause a distortion of competition in relation to private economic operators . neither should the participation of a contracting authority as a tenderer in a procedure for the award of a public contract cause any distortion of competition . ### there is considerable legal uncertainty as to how far cooperation between public authorities should be covered by public procurement rules . the relevant case - law of the court of justice of the european union is interpreted divergently between member states and even between contracting authorities . it is therefore necessary to clarify in what cases contracts concluded between contracting authorities are not subject to the application of public procurement rules . such clarification should be guided by the principles set out in the relevant case - law of the court of justice . the sole fact that both parties to an agreement are themselves contracting authorities does not as such rule out the application of procurement rules . however , the application of public procurement rules should not interfere with the freedom of public authorities to decide how to organise the way they carry out their public service tasks . this directive should aim to ensure that any exempted public - public cooperation does not cause a distortion of competition in relation to private economic operators . neither should the participation of a contracting authority as a tenderer in a procedure for the award of a public contract cause any distortion of competition .


### member states shall ensure that contracting authorities may take into account the need to ensure quality , continuity , accessibility , availability and comprehensiveness of the services , the specific needs of different categories of users , the involvement and empowerment of users and innovation . member states may also provide that the choice of the service provider shall not be made solely on the basis of the price for the provision of the service . ### member states shall ensure that contracting authorities take into account the need to ensure high quality , continuity , accessibility , affordability , availability and comprehensiveness of the services , the specific needs of different categories of users , including disadvantaged and vulnerable groups , the involvement and empowerment of users and innovation . member states shall ensure that the choice of the service provider is not made solely on the basis of the price for the provision of the service but takes into account quality and sustainability criteria for social services as set out above .


### in the procurement documents , the contracting authority may ask or may be required by a member state to ask the tenderer to indicate in its tender any share of the contract it may intend to subcontract to third parties and any proposed subcontractors . ### in the procurement documents , the contracting authority shall ask the tenderer to indicate in its tender any share of the contract it may intend to subcontract to third parties and any proposed subcontractors .


### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the award criterion of the most economically advantageous tender , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may only concern the protection of health of the staff involved in the production process or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in accordance with directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services and in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as an award criterion the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality of contract performance and , as a result , the economic value of the tender . ### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , including for example social and environmental aspects , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . the link to the subject matter rule shall be interpreted broadly . accordingly , in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the technical specifications and award criteria , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may for example concern the protection of health of the staff involved in the production process , gender balance , access to on - site vocational training , users ' involvement and consultation , human rights , ethical trade or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as technical specifications or award criteria the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality of contract performance and , as a result , the economic value of the tender .


### the name of the successful tenderer and the reasons why its tender was selected and , where known , the share of the contract or framework agreement which the successful tenderer intends to subcontract to third parties ; ### the name of the successful tenderer and the reasons why its tender was selected and , where known , the share of the contract or framework agreement which the successful tenderer intends to subcontract to third parties and information on their subcontractors including their names , contact details and legal representatives ;


### member states shall ensure that contracting authorities may take into account the need to ensure quality , continuity , accessibility , availability and comprehensiveness of the services , the specific needs of different categories of users , the involvement and empowerment of users and innovation . member states may also provide that the choice of the service provider shall not be made solely on the basis of the price for the provision of the service . ### member states shall ensure that contracting authorities take into account the need to ensure a high level of quality , continuity , accessibility , affordability , availability and comprehensiveness of the services , the specific needs of different categories of users , including disadvantaged and vulnerable groups , users ' satisfaction , social inclusion , the involvement and empowerment of users and , where relevant , innovation . member states shall provide that the choice of the service provider is not made solely on the basis of the price for the provision of the service . when drawing up quality criteria , contracting authorities may refer to the criteria set out in the voluntary european quality framework for social services . 2a . contracting authorities may choose to limit the participation in a tender procedure for the provision of social and health services to non profit organisations , provided that a national law that is compatible with european law provides for restricted access to certain services for the benefit on non profit organisations , in line with the ecj ' s jurisprudence . the call for competition shall make reference to this provision . the basic principles of transparency and equal treatment should be respected .


### procurement within the meaning of this directive is the purchase or other forms of acquisition of works , supplies or services by one or more contracting authorities from economic operators chosen by those contracting authorities , whether or not the works , supplies or services are intended for a public purpose . ### procurement within the meaning of this directive is the purchase or other forms of acquisition of works , supplies or services as referred to in this directive by one or more contracting authorities from economic operators chosen by those contracting authorities , whether or not the works , supplies or services are intended for a public purpose .


### where the value of a modification can be expressed in monetary terms , the modification shall not be considered to be substantial within the meaning of paragraph 1 , where its value does not exceed the thresholds set out in article 4 and where it is below 5 % of the price of the initial contract , provided that the modification does not alter the overall nature of the contract . where several successive modifications are made , the value shall be assessed on the basis of the cumulative value of the successive modifications . ### where the value of a modification can be expressed in monetary terms , the modification shall not be considered to be substantial within the meaning of paragraph 1 , where its value does not exceed the thresholds set out in article 4 or where it is below 10 % of the price of the initial contract , provided that the modification does not alter the overall nature of the contract . where several successive modifications are made , the value shall be assessed on the basis of the cumulative value of the successive modifications .


### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , also where contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , for instance where the chosen award criteria include factors linked to the production process . as a result , contracting authorities should be allowed to adopt as award criteria either ‘ the most economically advantageous tender’ or ‘ the lowest cost’ , taking into account that in the latter case they are free to set adequate quality standards by using technical specifications or contract performance conditions . ### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , and that contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , include factors linked to the criteria governing the socially sustainable production process and also involve disadvantaged persons . as a result , contracting authorities should adopt as the award criterion ‘ the most economically advantageous tender’ , taking into account that it should refer to quality standards which reflect technical specifications or contract performance conditions .


### contracting authorities authorising variants shall state in the procurement documents the minimum requirements to be met by the variants and any specific requirements for their presentation . they shall also ensure that the chosen award criteria can be usefully applied to variants meeting those minimum requirements as well as to conforming tenders which are not variants . ### variants may be authorised in the procurement documents which define the minimum requirements to be met by the variants and any requirements for their presentation . these minimum requirements are mandatory to ensure that the variants will not affect the subject matter of the contract . the contracting authority may reject any variants on the ground that it would affect the subject matter of the contract . they shall also ensure that the chosen award criteria can be usefully applied to variants meeting those requirements as well as to conforming tenders which are not variants .


### member states shall ensure that contracting authorities may take into account the need to ensure quality , continuity , accessibility , availability and comprehensiveness of the services , the specific needs of different categories of users , the involvement and empowerment of users and innovation . member states may also provide that the choice of the service provider shall not be made solely on the basis of the price for the provision of the service . ### member states shall ensure that contracting authorities may take into account the need to ensure quality , continuity , accessibility , availability and comprehensiveness of the services , the specific needs of different categories of users , the involvement and empowerment of users and innovation as well as consumer protection and social inclusion . contracting authorities shall ensure that , for the choice of the service provider , due account is given to social standards and considerations in accordance with point 22b of article 2 and articles , 40 , 54 , 55 , 56 and 71 . when choosing the service provider , contracting authorities shall consider using reserved contracts as provided for in article 17 .


### without prejudice to national laws , regulations or administrative provisions concerning the remuneration of certain services , the criteria on which contracting authorities shall base the award of public contracts shall be one of the following : the most economically advantageous tender ; the lowest cost . ### without prejudice to national laws , regulations or administrative provisions concerning the remuneration of certain services , the criteria on which contracting authorities shall base the award of public contracts shall be the most economically advantageous tender .


### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the award criterion of the most economically advantageous tender , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may only concern the protection of health of the staff involved in the production process or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in accordance with directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services22 and in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as an award criterion the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality of contract performance and , as a result , the economic value of the tender . ### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service or the production of the subject - matter of the contract . in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the award criterion of the most economically advantageous tender , characteristics related to the working conditions . contracting authorities may require the production of certificates / labels drawn up by independent bodies attesting that the economic operator complies with rules and standards in the field of health and safety , social and labour law defined by union and national legislation and by collective agreements which apply in the place where the work , service or supply is to be performed .


### contracting authorities requiring a specific label shall accept all equivalent labels that fulfil the requirements of the label indicated by the contracting authorities . for products that do not bear the label , contracting authorities shall also accept a technical dossier of the manufacturer or other appropriate means of proof . ### for products that do not bear the label , contracting authorities may also accept a technical dossier of the manufacturer or other appropriate means of proof . for products that do not bear the label , contracting authorities may also accept a technical dossier of the manufacturer or other appropriate means of proof , but only from economic operators that do not have access to such certificate , or no possibility of obtaining them within the relevant time limit .


### public contracts should not be awarded to economic operators that have participated in a criminal organisation or have been found guilty of corruption , fraud to the detriment of the union ' s financial interests or money laundering . non - payment of taxes or social security contributions should also be sanctioned by mandatory exclusion at the level of the union . furthermore , contracting authorities should be given the possibility to exclude candidates or tenderers for violations of environmental or social obligations , including rules on accessibility for disabled persons or other forms of grave professional misconduct , such as violations of competition rules or of intellectual property rights . ### public contracts should not be awarded to economic operators that have participated in a criminal organisation or have been found guilty of corruption , fraud to the detriment of the union ' s financial interests or money laundering . non - payment of taxes or social security contributions should also be sanctioned by mandatory exclusion at the level of the union . furthermore , contracting authorities should be given the possibility to exclude candidates or tenderers for violations of environmental , labour or social obligations , including rules on working conditions , collective agreements and accessibility for disabled persons , health and safety at work or other forms of grave professional misconduct , such as violations of competition rules or of intellectual property rights .


### public contracts may be subdivided into homogenous or heterogeneous lots . for contracts with a value equal to or greater than the thresholds provided for in article 4 but not less than eur 500 000 , determined in accordance with article 5 , where the contracting authority does not deem it appropriate to split into lots , it shall provide in the contract notice or in the invitation to confirm interest a specific explanation of its reasons . ### with a view to maximizing competition and access of smes to public procurement , public contracts may be subdivided into lots . for contracts with a value equal to or greater than eur 500 000 , determined in accordance with article 5 , where the contracting authority does not deem it appropriate to split into lots , it shall provide in the contract notice or in the invitation to confirm interest a specific explanation of its reasons .


### public contracts may be subdivided into homogenous or heterogeneous lots . for contracts with a value equal to or greater than the thresholds provided for in article 4 but not less than eur&#160 ; 500&#160 ; 000 , determined in accordance with article 5 , where the contracting authority does not deem it appropriate to split into lots , it shall provide in the contract notice or in the invitation to confirm interest a specific explanation of its reasons . ### with a view to maximising competition , and unless the subject - matter of the contract makes division on the basis of the nature of the services involved impossible , the contracting authority shall award the contract in separate lots . for contracts with a value equal to or greater than the thresholds provided for in article 4 but not less than eur&#160 ; 500&#160 ; 000 , determined in accordance with article 5 , if the contract cannot be split into lots because its subject - matter makes division on the basis of the nature of the services involved impossible , the contracting authority shall provide in the contract notice or in the invitation to confirm interest a specific explanation of its reasons .


### compliance , at least in an equivalent manner , with obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi or , where not applicable , with other provisions ensuring an equivalent level of protection ; ### compliance with the provisions relating to employment protection and working conditions in force at the place where the work , service or supply is to be performed ;


### the notices referred to in paragraphs 1 and 2 shall contain the information referred to in annexes vi part h and i , in accordance with the standard forms . ### the notices referred to in paragraph 2 shall contain the information referred to in annex vi part i .


### the agreement is governed only by considerations relating to the public interest ; ### the agreement is governed by considerations relating to the public interest , and the services and requisite ancillary services relate thereto ;


### the most economically advantageous tender referred to in point of paragraph 1 from the point of view of the contracting authority shall be identified on the basis of criteria linked to the subject - matter of the public contract in question . those criteria shall include , in addition to the price or costs referred to in point of paragraph 1 , other criteria linked to the subject - matter of the public contract in question , such as : ### the most economically advantageous tender referred to in paragraph 1 from the point of view of the contracting authority shall be identified on the basis of criteria linked to the subject - matter of the public contract in question . those criteria shall include , in addition to the price or costs , other criteria linked to the subject - matter of the public contract in question , such as :


### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the award criterion of the most economically advantageous tender , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may only concern the protection of health of the staff involved in the production process or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in accordance with directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services and in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as an award criterion the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality of contract performance and , as a result , the economic value of the tender . ### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to life - cycle characteristics and the socially sustainable production process , provided that these characteristics or this process are linked to the subject - matter of the public contract . the technical specifications and award criteria should be interpreted broadly . accordingly , the technical specifications and award criteria may refer to the life cycle characteristics and the socially sustainable production process , including the social and environmental aspects of the production process or of the provision of products or services . contracting authorities may also use the technical specifications and award criteria to minimise damaging social or environmental effects or maximise positive social or environmental effects . in order to better integrate social considerations in public procurement , procurers may also be allowed to incorporate in the technical specifications and award criteria characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . they should be applied in the framework of the provision of services and in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as technical specifications and award criteria the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality and social sustainability of contract performance and , as a result , the identification of the tender which offers the best value for money .


### public procurement plays a key role in the europe 2020 strategy12 as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors13 and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts14 have to be revised and modernised in order to increase the efficiency of public spending , facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union . ### public procurement plays a key role in the europe 2020 strategy as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to enable procurers to make better use of public procurement in support of sustainable development compliance with social and labour rights and other common societal goals and in order thereby to increase the efficiency of public spending , guaranteeing the best possible result in terms of cost - effectiveness and facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to simplify union rules on public procurement , in particular as regards the method used to achieve the sustainability objectives which should be part and parcel of public procurement policy and clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union .


### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the award criterion of the most economically advantageous tender , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may only concern the protection of health of the staff involved in the production process or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in accordance with directive 96 / 71 / ec of the european parliament and of the council of 16 december 1996 concerning the posting of workers in the framework of the provision of services and in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as an award criterion the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality of contract performance and , as a result , the economic value of the tender . ### furthermore , in technical specifications and in award criteria , contracting authorities should be allowed to refer to a specific production process , including for example social and environmental aspects , a specific mode of provision of services , or a specific process for any other stage of the life cycle of a product or service , provided that they are linked to the subject - matter of the public contract . the link to the subject matter rule shall be interpreted broadly . accordingly , in order to better integrate social considerations in public procurement , procurers may also be allowed to include , in the technical specifications and award criteria , characteristics related to the working conditions of the persons directly participating in the process of production or provision in question . those characteristics may for example concern the protection of health of the staff involved in the production process , gender balance , access to on - site vocational training , users ' involvement and consultation , human rights , ethical trade or the favouring of social integration of disadvantaged persons or members of vulnerable groups amongst the persons assigned to performing the contract , including accessibility for persons with disabilities . any award criteria which include those characteristics should in any event remain limited to characteristics that have immediate consequences on staff members in their working environment . they should be applied in a way that does not discriminate directly or indirectly against economic operators from other member states or from third countries parties to the agreement or to free trade agreements to which the union is party . for service contracts and for contracts involving the design of works , contracting authorities should also be allowed to use as technical specifications or award criteria the organisation , qualification and experience of the staff assigned to performing the contract in question , as this may affect the quality of contract performance and , as a result , the economic value of the tender .


### the acquisition , development , production or co - production of programme material intended for audiovisual media services , that are awarded by broadcasters , or contracts for broadcasting time that are awarded to audiovisual media service providers ; ### the acquisition , development , production or co - production of programme material and related preparatory services intended for media services , or contracts for broadcasting or distribution and transmission ;


### the technical specifications as defined in point 1 of annex viii shall be set out in the procurement documents . they shall define the characteristics required of a works , service or supply . ### the technical specifications shall be set out in the procurement documents . they shall define the characteristics required of a works , service or supply in order to achieve both the use and sustainability objectives of the contracting authority .


### for the purposes of this article , ‘ private interests’ means any family , emotional life , economic , political or other shared interests with the candidates or the tenderers , including conflicting professional interests . ### for the purposes of this article , ‘ shared interests’ means any economic interest or family ties , shared with the candidates or the tenderers , including conflicting professional interests .


### contracting authorities may decide not to award a contract to the tenderer submitting the best tender where they have established that the tender does not comply , at least in an equivalent manner , with obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi . ### contracting authorities shall not award a contract to the tenderer submitting the best tender where they have established that the tender does not comply with obligations in the field of social and labour law or environmental law established by union or national legislation or collective agreements which apply in the place where the work , service or supply is performed , or by the international social and environmental law provisions listed in annex xi .


### procurement within the meaning of this directive is the purchase or other forms of acquisition of works , supplies or services by one or more contracting authorities from economic operators chosen by those contracting authorities , whether or not the works , supplies or services are intended for a public purpose . ### procurement within the meaning of this directive is the purchase of works , supplies or services via public contracts by one or more contracting authorities from economic operators chosen by those contracting authorities .


### sub - central contracting authorities may set the time limit for the receipt of tenders by mutual agreement between the contracting authority and the selected candidates , provided that all candidates have the same time to prepare and submit their tenders . where it is not possible to reach agreement on the time limit for the receipt of tenders , the contracting authority shall fix a time limit which shall be at least 10 days from the date of the invitation to tender . ### sub - central contracting authorities may set the time limit for the receipt of tenders by mutual agreement between the contracting authority and the selected candidates , provided that all candidates have the same time to prepare and submit their tenders . where it is not possible to reach agreement on the time limit for the receipt of tenders , the contracting authority shall fix a time limit which shall be at least 15 days from the date of the invitation to tender .


### the most economically advantageous tender referred to in point of paragraph 1 from the point of view of the contracting authority shall be identified on the basis of criteria linked to the subject - matter of the public contract in question . those criteria shall include , in addition to the price or costs referred to in point of paragraph 1 , other criteria linked to the subject - matter of the public contract in question , such as : ### the most economically , socially and environmentally advantageous tender referred to in point of paragraph 1 from the point of view of the contracting authority shall be identified on the basis of criteria linked to the subject - matter of the public contract in question . those criteria shall include , in addition to the price or costs referred to in point of paragraph 1 , other criteria linked to the subject - matter or the production of the subject - matter of the public contract in question , such as :


### where contracting authorities choose to award a contract to the most economically advantageous tender , they must determine the award criteria on the basis of which they will assess tenders in order to identify which one offers the best value for money . the determination of these criteria depends on the subject - matter of the contract since they must allow the level of performance offered by each tender to be assessed in the light of the subject - matter of the contract , as defined in the technical specifications , and the value for money of each tender to be measured . furthermore , the chosen award criteria should not confer an unrestricted freedom of choice on the contracting authority and they should ensure the possibility of effective competition and be accompanied by requirements that allow the information provided by the tenderers to be effectively verified . ### contracting authorities must determine award criteria on the basis of which they will assess tenders in order to identify which one offers the best value for money . to identify the tender representing best value , contracting authorities should use objective criteria that are linked to the subject matter of the contract . the chosen award criteria should not confer an unrestricted freedom of choice on the contracting authority , however . rather , the award procedure should guarantee effective competition through strict compliance with the principles of transparency , non - discrimination and equal treatment . these principles require , among other things , that the information provided by the tenderers be effectively and transparently verified .


### they may also provide that contracting authorities may use a competitive procedure with negotiation or a competitive dialogue in any of the following cases : ### they may also provide that contracting authorities may use a competitive procedure with negotiation or a competitive dialogue provided this does not lead to distortion of competition or discrimination .


### where it is aware of any violation of obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi . compliance with union legislation or with international provisions also includes compliance in an equivalent manner . ### where it is aware of any violation of obligations in the field of social and labour law or environmental law established by union or national legislation , of collective agreements applicable in the place where the work is performed or the service is provided , or of the international social and environmental law provisions listed in annex xi . compliance with union legislation or with international provisions also includes compliance in an equivalent manner .


### tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in order to prevent possible disadvantages during contract performance , contracting authorities should be obliged to ask for an explanation of the price charged where a tender significantly undercuts the prices demanded by other tenderers . where the tenderer cannot provide a sufficient explanation , the contracting authority should be entitled to reject the tender . rejection should be mandatory in cases where the contracting authority has established that the abnormally low price charged results from non - compliance with mandatory union legislation in the fields of social , labour or environmental law or international labour law provisions . ### tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in order to prevent possible disadvantages during contract performance , contracting authorities should be obliged to ask for an explanation of the price charged where a tender significantly undercuts the prices demanded by other tenderers . where the tenderer cannot provide a sufficient explanation , the contracting authority should reject the tender . rejection should be mandatory in cases where the contracting authority has established that the abnormally low price charged results from non - compliance with union legislation in the field of environmental law or with obligations relating to social and employment conditions , health and safety in the workplace , social security and working conditions as set out by eu and national laws , regulations or administrative provisions , arbitration awards , collective agreements and contracts , and international labour law provisions listed in annex xi , that apply in the place where the work , service or supply is performed ; these obligations shall also apply in cross - border situations , where workers from one member state provide services in another member state .


### the most economically advantageous tender referred to in point of paragraph 1 from the point of view of the contracting authority shall be identified on the basis of criteria linked to the subject - matter of the public contract in question . those criteria shall include , in addition to the price or costs referred to in point of paragraph 1 , other criteria linked to the subject - matter of the public contract in question , such as : ### the most economically advantageous tender referred to in point of paragraph 1 from the point of view of the contracting authority shall be identified on the basis of criteria linked to the subject - matter of the public contract in question . those criteria shall include other criteria linked to the subject - matter of the public contract in question , such as :


### there is a widespread need for additional flexibility and in particular for wider access to a procurement procedure providing for negotiations , as is explicitly foreseen in the agreement , where negotiation is allowed in all procedures . contracting authorities should , unless otherwise provided in the legislation of the member state concerned , be able to use a competitive procedure with negotiation as provided for in this directive , in various situations where open or restricted procedures without negotiations are not likely to lead to satisfactory procurement outcomes . this procedure should be accompanied by adequate safeguards ensuring observance of the principles of equal treatment and transparency . this will give greater leeway to contracting authorities to buy works , supplies and services perfectly adapted to their specific needs . at the same time , it should also increase cross - border trade , as the evaluation has shown that contracts awarded by negotiated procedure with prior publication have a particularly high success rate of cross - border tenders . ### there is a widespread need for additional flexibility and in particular for wider access to a procurement procedure providing for negotiations , as is explicitly foreseen in the agreement , where negotiation is allowed in all procedures . contracting authorities should be able to use a competitive procedure with negotiation as provided for in this directive , in various situations where open or restricted procedures without negotiations are not likely to lead to satisfactory procurement outcomes . this procedure should be accompanied by adequate safeguards ensuring observance of the principles of equal treatment and transparency . this will give greater leeway to contracting authorities to buy works , supplies and services perfectly adapted to their specific needs . at the same time , it should also increase cross - border trade , as the evaluation has shown that contracts awarded by negotiated procedure with prior publication have a particularly high success rate of cross - border tenders .


### in the procurement documents , the contracting authority may ask or may be required by a member state to ask the tenderer to indicate in its tender any share of the contract it may intend to subcontract to third parties and any proposed subcontractors . ### in the procurement documents , the contracting authority shall ask the tenderer to indicate in its tender any share of the contract it may intend to subcontract to third parties and any proposed subcontractors .