### 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 . ### when a contract is to be awarded to the most economically advantageous tender , contracting authorities 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 lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label , provided that all of the following conditions are fulfilled : the requirements for the label only concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; the requirements for the label are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria ; the labels are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate , the labels are accessible to all interested parties ; the criteria of the label are set by a third party which is independent from the economic operator applying for the label . 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 . ### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear labels , provided that all of the following conditions are fulfilled : the requirements for the label only concern characteristics which are linked to the subject - matter of the contract or the production of the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; the requirements for the label are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria ; the labels are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors , social partners , environmental and social organisations may participate , the labels are accessible to all interested parties ; the attribution and verification of the label are undertaken by a third party which is independent from the economic operator applying for the label . contracting authorities requiring a 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 may also accept a technical dossier of the manufacturer or other appropriate means of proof of equivalence . the burden for providing proof of equivalence with a specific label should be placed on the tenderer claiming equivalence .


### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label , provided that all of the following conditions are fulfilled : the requirements for the label only concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; the requirements for the label are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria ; the labels are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate , the labels are accessible to all interested parties ; the criteria of the label are set by a third party which is independent from the economic operator applying for the label . ### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label and / or a certificate of a third party verified standard , provided that all of the following conditions are fulfilled : the requirements for the label and / or the certificate of a third party verified standard concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; the requirements for the label and / or the certificate of a third party verified standard are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria and data ; the labels and / or certificates of a third party verified standard are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate , the labels and / or certificates of a third party verified standard are accessible to all interested parties ; the criteria of the label and / or certificate of a third party verified standard are set by a third party which is independent from the economic operator applying for the label . the third party may be a specific national or governmental body or organisation .


### 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 the award criteria on the basis of which they will assess tenders in order to identify which one offers the best value , including environmental and social responsibility , for money . the determination of these criteria depends on the subject - matter of the contract or the subject matter of the production since they must allow the level of performance offered by each tender to be assessed in the light of the subject - matters of the contract and production , 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 and fair competition and be accompanied by requirements that allow the information provided by the tenderers to be effectively verified .


### 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 .


### 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 the concepts of the socially - sustainable production process must be integrated into the definition and implementation of the union policies and activities , in particular with a view to promoting sustainable development and ensuring , throughout the supply chain , compliance with rules on public health and safety , social standards and national and union labour laws . this directive clarifies how the contracting authorities contribute to the protection of the environment and the promotion of sustainable development , and in regard to technical specifications and award criteria use the powers of discretion at their disposal to select the ones that are the most likely to achieve socially sustainable public procurement thereby ensuring contracts still obtain best value for money for their purpose .


### financial services in connection with the issue , sale , purchase or transfer of securities or other financial instruments within the meaning of directive 2004 / 39 / ec of the european parliament and of the council27 , central bank services and operations conducted with the european financial stability facility ; ### financial services in connection with the issue , sale , purchase or transfer of securities or other financial instruments within the meaning of directive 2004 / 39 / ec of the european parliament and of the council27 , transactions to enable contracting authorities to raise money or capital , as well as central bank services and operations conducted with the european financial stability facility ;


### where the aim of the procurement is the creation or obtention of a work of art ; ### where the aim of the procurement is the creation , renovation , conservation , or obtention of a work of art — or of movable or immovable property , subject to artistic , historic and architectural constraints ;


### 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 , 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 and employment 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 .


### 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 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 may be determined in accordance with the commission guidelines of october 2010 : buying social : a guide to taking account of social considerations in public procurement 1258 final ) .


### 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 lots .


### 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 .


### the award criteria . ### the main award criteria .


### 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 .


### 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 .


### 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 .


### 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 . ### ‘ private interests’ shall be understood to mean any property or financial shared interests with the candidates or the tenderers or advantages stemming from direct financial payments linked to employment , an employment contract , investments and involvement in activities supported under the contracts .


### member states may provide that contracting authorities may apply innovation partnerships as regulated in this directive . ### member states shall provide that contracting authorities may apply innovation partnerships as regulated in this directive .


### these sector - specific measures must be complemented by an adaptation of the public procurement directives empowering contracting authorities to pursue the objectives of the europe 2020 strategy in their purchasing strategies . it should hence be made clear that contracting authorities can determine the most economically advantageous tender and the lowest cost using a life - cycle costing approach , provided that the methodology to be used is established in an objective and non - discriminatory manner and accessible to all interested parties . the notion of life - cycle costing includes all costs over the life cycle of works , supplies or services , both their internal costs and their external costs , provided they can be monetised and monitored . common methodologies should be developed at the level of the union for the calculation of life - cycle costs for specific categories of supplies or services ; whenever such a methodology is developed its use should be made compulsory . ### these sector - specific measures should be complemented by an adaptation of the public procurement directives empowering contracting authorities to pursue the objectives of the europe 2020 strategy in their purchasing strategies . it should hence be made clear that contracting authorities should determine the most economically advantageous tender using an approach based on life - cycle costing and costing of the sustainable production process , in accordance with articles 9 , 10 and 11 of the treaty on the functioning of the european union , which refer to the social and environmental requirements to be taken into account in the definition and implementation of union policies . the notion of life - cycle costing includes all costs over the life cycle of works , supplies or services , both their internal costs and their external costs , provided they can be monetised and monitored . common methodologies should be developed at the level of the union for the calculation of life - cycle costs for specific categories of supplies or services ; whenever such a methodology is developed its use should be made compulsory .


### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label , provided that all of the following conditions are fulfilled : the requirements for the label only concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; the requirements for the label are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria ; the labels are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate , the labels are accessible to all interested parties ; the criteria of the label are set by a third party which is independent from the economic operator applying for the label . ### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label and / or a certificate of a third party verified standard , provided that all of the following conditions are fulfilled : the requirements for the label and / or the certificate of a third party verified standard concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; the requirements for the label and / or the certificate of a third party verified standard are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria and data ; the labels and / or certificates of a third party verified standard are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate , the labels and / or certificates of a third party verified standard are accessible to all interested parties ; the criteria of the label and / or certificate of a third party verified standard are set by a third party which is independent from the economic operator applying for the label . the third party may be a specific national or governmental body or organisation .


### 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 .


### contracting authorities may use electronic auctions , in which new prices , revised downwards , and / or new values concerning certain elements of tenders are presented . ### contracting authorities may use electronic auctions , in which new prices , revised downwards , and / or new values concerning certain elements of tenders are presented . the scope for electronic auctions shall be restricted to fully standardised supplies and services .


### quality , including technical merit , aesthetic and functional characteristics , accessibility , design for all users , environmental characteristics and innovative character ; ### quality , including technical merit , aesthetic and functional characteristics , accessibility , design for all users , environmental characteristics and innovative character , support for local training , local support chain , social cohesion , and fair trade considerations , as well as commitment to recruit target groups , such as long term unemployed , young people and disabled people to complete the contract .


### 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 . 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 . these conditions should , in particular , take account of the concept of the social business , as defined in the commission communication of 25 october 2011 entitled ‘ social business initiative’ . 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 .


### 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 .


### for service contracts and contracts involving the design of works , the organisation , qualification and experience of the staff assigned to performing the contract in question may be taken into consideration , with the consequence that , following the award of the contract , such staff may only be replaced with the consent of the contracting authority , which must verify that replacements ensure equivalent organisation and quality ; ### for service contracts and contracts involving the design of works , the organisation , qualification and experience of the staff assigned to performing the contract in question shall be taken into consideration , with the consequence that , following the award of the contract , such staff may only be replaced with the consent of the contracting authority , which must verify that replacements ensure equivalent organisation and quality ;


### contracting authorities may use electronic auctions , in which new prices , revised downwards , and / or new values concerning certain elements of tenders are presented . ### contracting authorities may use electronic auctions to purchase standardised goods only , in which new prices , revised downwards , and / or new values concerning certain elements of tenders are presented .


### 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 .


### 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 .


### where tenders appear to be abnormally low for other reasons , contracting authorities may also request such explanations . ### where tenders appear to be abnormally low for other reasons , contracting authorities shall also request such explanations .


### 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 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 justified on public policy grounds in order to promote sustainable economic growth , contracting authorities may include criteria related to socio - economic impact in order to identify which tender offers the best value for money . such cases may arise where there is a need to develop and retain a skilled workforce , foster business capacity in order to ensure that contracting authorities ' future requirements can be met , or avoid any detrimental impact on the workforce or business capacity as a result of the contract award decision .


### 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 .


### 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 .


### 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 .


### 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 .


### 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 .


### 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 :


### in the case referred to in point of paragraph 1 the contracting authority shall specify , in the contract notice , in the invitation to confirm interest , in the procurement documents or , in the case of a competitive dialogue , in the descriptive document , the relative weighting which it gives to each of the criteria chosen to determine the most economically advantageous tender . ### the contracting authority shall specify , in the contract notice , in the invitation to confirm interest , in the procurement documents or , in the case of a competitive dialogue , in the descriptive document , the relative weighting which it gives to each of the criteria chosen to determine the most economically advantageous tender .


### labels ### labels and certificates of a third party verified standard


### 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 ;


### 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 .


### member states shall ensure that interested economic operators have easy access to appropriate information on the obligations relating to taxes , environmental protection , and to social and labour law obligations , 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 and which will be applicable to the works carried out on site or to the services provided during the performance of the contract . ### member states shall ensure that interested economic operators have easy access to appropriate information on the obligations relating to taxes , environmental protection , and to social and employment protection provisions and working conditions , which are in force in the member state , the region or locality where the works are to be carried out or the services are to be provided and which will be applicable to the works carried out on site or to the services provided during the performance of the contract . member states shall ensure that contracting authorities state where the information can be found in the contract documents .


### 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 tenders . where the tender cannot provide a sufficient explanation , the contracting authority should reject the tender . rejection should be mandatory also in cases where the contracting authority has established that abnormally low price charged results from non - compliance with national , international and european union legislation , in particular in the fields of social , labour or environmental law .


### other categories of services continue by their very nature to have a limited cross - border dimension , namely what are known as services to the person , such as certain social , health and educational services . these services are provided within a particular context that varies widely amongst member states , due to different cultural traditions . a specific regime should therefore be established for public contracts for these services , with a higher threshold of eur 500 000 . services to the person with values below this threshold will typically not be of interest to providers from other member states , unless there are concrete indications to the contrary , such as union financing for transborder projects . contracts for services to the person above this threshold should be subject to union - wide transparency . given the importance of the cultural context and the sensitivity of these services , member states should be given wide discretion to organise the choice of the service providers in the way they consider most appropriate . the rules of this directive take account of that imperative , imposing only observance of basic principles of transparency and equal treatment and making sure that contracting authorities are able to apply specific quality criteria for the choice of service providers , such as the criteria set out in the voluntary european quality framework for social services of the european union ' s social protection committee . member states and / or public authorities remain free to provide these services themselves or to organise social services in a way that does not entail the conclusion of public contracts , for example through the mere financing of such services or by granting licences or authorisations to all economic operators meeting the conditions established beforehand by the contracting authority , without any limits or quotas , provided such a system ensures sufficient advertising and complies with the principles of transparency and non - discrimination . ### other categories of services continue by their very nature to have a limited cross - border dimension , namely what are known as services to the person , such as certain social , health and educational services . these services are provided within a particular context that varies widely amongst member states , due to different cultural traditions . by their very nature they are in general difficult to reconcile with internal market rules applying to public procurement . therefore , public authorities should prefer other ways of providing these services and must ensure high quality for the social services provided if they decide nevertheless to apply public procurement procedures . for a better quality of these services in contracts , a specific regime should be established with a higher threshold of eur 500 000 . services to the person with values below this threshold will typically not be of interest to providers from other member states , unless there are concrete indications to the contrary , such as union financing for transborder projects . contracts for services to the person above this threshold should be subject to union - wide transparency . given the importance of the cultural context and the sensitivity of these services , the subsidiarity principle , protocol 26 on services of general interest , article 14 of the treaty on the functioning of the european union and article 36 of the charter of fundamental rights , member states have wide discretion to organise the choice of the service providers in the way they consider most appropriate , as closely as possible to the needs of the users , and taking into account the differences in the needs and preferences of users that may result from different geographical , social or cultural situations , and to ensure universal access , continuity and availability of the services in all territories of the union . the rules of this directive take account of that imperative , imposing only observance of basic principles of transparency and equal treatment and making sure that contracting authorities are able to apply specific quality criteria for the choice of service providers , such as the criteria set out in the voluntary european quality framework for social services of the european union ' s social protection committee , which are designed 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 . criteria relating to social and employment conditions , health and safety at the workplace , social security and working conditions should particularly be taken into account . member states and / or public authorities remain free to provide these services themselves including vertical ' in - house ' provision or horizontal inter - municipal cooperation , or to organise social services in any other way that does not entail the conclusion of public contracts , for example through the mere financing of such services or by granting licences or authorisations to all economic operators meeting the conditions established beforehand by the contracting authority , without any limits or quotas , provided such a system ensures sufficient advertising and complies with the principles of transparency and non - discrimination . according to case law of the court , in particular the judgement in case c - 70 / 95 , contracting authorities may be allowed to reserve contracts to non - profit organisation , if such a restriction is provided for by national law and compatible with european law , if it is necessary and proportionate to attain certain societal goals of the national welfare system .


### 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 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 to enable procurers to make better use of public procurement in support of sustainable development compliance with social and labour rights , social inclusion , innovation where relevant , and other common societal goals , thereby increasing the efficiency of public spending , ensuring best value for money , 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 , leading to creation of new sustainable jobs . 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 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 . this directive only provides legislation on how to buy .


### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label , provided that all of the following conditions are fulfilled : the requirements for the label only concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; the requirements for the label are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria ; the labels are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate , the labels are accessible to all interested parties ; the criteria of the label are set by a third party which is independent from the economic operator applying for the label . ### where contracting authorities lay down environmental , social or other characteristics of a works , service or supply in terms of performance or functional requirements as referred to in point of article 40 they may require that these works , services or supplies bear a specific label and / or a certificate of a third party verified standard , provided that all of the following conditions are fulfilled : the requirements for the label and / or the certificate of a third party verified standard concern characteristics which are linked to the subject - matter of the contract and are appropriate to define characteristics of the works , supplies or services that are the subject - matter of the contract ; the requirements for the label and / or the certificate of a third party verified standard are drawn up on the basis of scientific information or based on other objectively verifiable and non - discriminatory criteria and data ; the labels and / or certificates of a third party verified standard are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate , the labels and / or certificates of a third party verified standard are accessible to all interested parties ; the criteria of the label and / or certificate of a third party verified standard are set by a third party which is independent from the economic operator applying for the label . the third party may be a specific national or governmental body or organisation .


### the explanations referred to in paragraphs 1 and 2 may in particular relate to : ### the explanations referred to in paragraphs 1 and 2 shall in particular relate to :


### contracting authorities shall reject the tender , where they have established that the tender is abnormally low because it does not comply with obligations established by union legislation in the field of social and labour law or environmental law or by the international social and environmental law provisions listed in annex xi . ### contracting authorities shall reject the tender , where they have established that the tender is abnormally low because it does not comply with obligations established by union legislation or national laws , regulations and other binding provisions in the field of social and labour law , environmental law or public health law or by the international social and environmental law provisions listed in annex xi .


### in the case referred to in point of paragraph 1 the contracting authority shall specify , in the contract notice , in the invitation to confirm interest , in the procurement documents or , in the case of a competitive dialogue , in the descriptive document , the relative weighting which it gives to each of the criteria chosen to determine the most economically advantageous tender . ### in the case referred to in point of paragraph 1 the contracting authority shall specify , in the contract notice , in the invitation to confirm interest , in the procurement documents or , in the case of a competitive dialogue , in the descriptive document , the relative weighting which it gives to each of the criteria chosen to determine the most economically , socially and environmentally 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 . ### contracting authorities must determine the award criteria on the basis of which they will assess tenders in order to identify which one offers the best value , including environmental and social responsibility , for money . the determination of these criteria depends on the subject - matter of the contract or the subject matter of the production since they must allow the level of performance offered by each tender to be assessed in the light of the subject - matters of the contract and production , 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 and fair competition and be accompanied by requirements that allow the information provided by the tenderers to be effectively verified .


### contract modifications shall not be considered substantial within the meaning of paragraph 1 where they have been provided for in the procurement documents in clear , precise and unequivocal review clauses or options . such clauses shall state the scope and nature of possible modifications or options as well as the conditions under which they may be used . they shall not provide for modifications or options that would alter the overall nature of the contract . ### contract modifications shall not be considered substantial within the meaning of paragraph 1 where they have been provided for in the procurement documents in clear , precise and unequivocal review clauses or options or in the form of a price revision clause or clauses on the procedures for setting prices . such clauses shall state the scope and nature of possible modifications or options as well as the conditions under which they may be used . they shall not provide for modifications or options that would alter the overall nature of the contract .


### 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 .


### 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 .


### the labels are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate , ### the labels and / or certificates of a third party verified standard are established in an open and transparent procedure in which all stakeholders , including government bodies , consumers , manufacturers , distributors and environmental organisations , may participate ;


### where a label fulfils the conditions provided in points , , and of paragraph 1 but also sets out requirements not linked to the subject - matter of the contract , contracting authorities may define the technical specification by reference to those of the detailed specifications of that label , or , where necessary , parts thereof , that are linked to the subject - matter of the contract and are appropriate to define characteristics of this subject - matter . ### where a third party verified standard does not fall within the definition set out in point 5a of annex viii because its criteria sets out requirements not linked to the subject - matter of the contract , contracting authorities may define the technical specification by reference to of the detailed specifications of that standard or , where necessary , parts thereof , that are linked to the subject - matter of the contract and are appropriate to define characteristics of this subject - matter .


### the award of public contracts by or on behalf of member states authorities has to comply with the principles of the treaty on the functioning of the european union , and in particular the free movement of goods , freedom of establishment and the freedom to provide services as well as the principles deriving therefrom , such as equal treatment , non - discrimination , mutual recognition , proportionality and transparency . however , for public contracts above a certain value , provisions should be drawn up coordinating national procurement procedures so as to ensure that these principles are given practical effect and public procurement is opened up to competition . ### the award of public contracts by or on behalf of member states authorities has to comply with the principles of the treaties of the european union , and in particular the free movement of goods , freedom of establishment and the freedom to provide services as well as the principles deriving therefrom , such as equal treatment , non - discrimination , mutual recognition , proportionality and transparency and with the distribution of competencies as enshrined in article 14 tfeu and the protocol no 26 . the european regulation of public procurement should respect the wide discretion of public authorities in carrying out their public service tasks . however , for public contracts above a certain value , provisions should be drawn up coordinating national procurement procedures so as to ensure that these principles are given practical effect and public procurement is opened up to competition .


### 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 may decide not to award a contract to the tenderer submitting the best tender where it has been established that the tender does not comply , at least in an equivalent manner , with obligations established by national or 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 .


### 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 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 , 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 , plays a key role in the europe 2020 strategy and in fulfilling the objective of sustainable development stated in the treaty of lisbon . 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 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 .


### 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 .


### 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 .


### requests to participate in procedures for the award of public contracts may be made in writing or by telephone ; in the latter case , a written confirmation must be sent before expiry of the time limit set for their receipt ; ### requests to participate in procedures for the award of public contracts may be made in writing ;


### this exception only applies when no reasonable alternative or substitute exists and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement ; ### this exception only applies when the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement ;


### 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 .


### where the aim of the procurement is the creation or obtention of a work of art ; ### where the aim of the procurement is the creation , renovation , conservation , or obtention of a work of art — or of movable or immovable property , subject to artistic , historic and architectural constraints ;