COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Making Public Procurement work in and for Europe
Date: 2017-10-03
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: competitiveness, corruption, cross-border cooperation, digital technology, economic growth, investment policy, public authorities, public contract, single market, small and medium-sized enterprises

EN 

   EN 

   EUROPEAN COMMISSION  Strasbourg, 3.10.2017  COM(2017) 572 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Making Public Procurement work in and for Europe  
 
 
Introduction 

In times of fundamental change for the EU and of a renewed debate about its future direction, 
it  is  clear  that  Europeans  deserve  and  increasingly  demand  an  EU  that  delivers  concrete 
results. Actions taken at EU level should translate into economic growth and competitiveness, 
sustainability,  solidarity  and  security.  As  spelled  out  by  the  Investment  Plan  for  Europe,1 
stimulating  investment  is  key  to  obtain  such  results  by  unlocking  the  creation  of  more  jobs 
and sustainable growth in the single market. 

A substantial part of public investment in our economy is spent through public procurement, 
representing  14 %  of  the  EU  GDP,  making  it  a  fundamental  element  of  the  investment 
ecosystem.  Public  authorities  can  use  this lever  in  a  more  strategic  manner,  to  obtain  better 
value  for  each  euro  of  public  money  spent  and  to  contribute  to  a  more  innovative, 
sustainable2, inclusive and competitive economy. Moreover, improving procurement is part of 
the  stronger  single  market,  called  for  in  the  2017  State  of  the  Union  address  of  President 
Juncker. 

This Communication presents a public procurement strategy which sets out the overall policy 
framework  and  defines  clear  priorities  to  improve  procurement  in  practice  and  support 
investment within the EU. Three concrete initiatives are presented alongside this strategy. The 
Commission  presents  a  Communication  on  a  mechanism  for  large  infrastructure  projects  to 
provide  clarity  and  guidance  to  public  authorities  on  public procurement.  It  also  proposes  a 
Recommendation to professionalise public buyers because a skilful workforce is essential for 
effective implementation. In parallel, a targeted consultation is launched on a draft guidance 
on  public  procurement  of  innovation,  to  support  the  breakthrough  of  new  and  more 
sustainable solutions for our societies. 

1. 

PUBLIC PROCUREMENT MATTERS MORE THAN EVER 

Europeans  expect  a  fair  return  on  their  taxes  in  the  form  of  high-quality  public  services. 
Parents  would  like  to  see  healthy  food  for  their  children  in  schools,  city  dwellers  expect 
increased investment in smart and sustainable cities for better living with dedicated safe bike 
paths,  squares  and  playgrounds  built  with  safe  and  innovative  materials;  road  users  expect 
safe,  high-quality  infrastructure  constructions,  patients  need  improved  access  to  a  better 
quality  of  healthcare  and  expect  the  latest  innovation  driven  medical  equipment  and 
diagnostics tools. To ensure the delivery of high-quality public services, a strategic approach 
to sourcing is needed. This strongly depends on modern and efficient public procurement 
processes. 

For  public  authorities,  procurement  is  a  powerful  tool  for  spending  public  money  in  an 
efficient, sustainable and strategic manner, especially in times of strained national budgets. 
Representing  EUR  2  000  billion  every  year,3  better  managed  procurement  can  lead  to 
significant savings in public budgets and to more investment. For example, an efficiency gain 
of 10 % could yield significant savings of EUR 200 billion per year, without cutting the level 
of  service  offered  to  Europeans.  Procurement  has  also  a  major  impact  on  the  EU  structural 
and investment funds, where almost half of these funds are spent via public contracts. Good 
contracting helps to get the best value for money from these EU funds. 

1 Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and 
Social Committee, the Committee of the Regions and the European Investment Bank: An investment plan for Europe (COM/2014/0903). 
2 Integrating resource-efficiency, energy-efficiency and economic considerations 
3 Estimation of total general government expenditures on works, goods and services, based on Eurostat. 

2 

 
 
                                                 
Procurement matters also for European companies who benefit from the single market when 
bidding for public contracts in their own, as well as other EU Member States. Technological 
acceleration and digitalisation, changing demographics and evermore interconnected markets 
strongly affect our societies and economies. In a globalised world, the economic integration 
brought  about  by  the  single  market  remains  a  key  driver  for  wealth  creation  and 
competitiveness, and therefore our best protection.  

Public  procurement  is  a  strategic  instrument  in  each  Member  State’s  economic  policy 
toolbox.  The 2015 single  market strategy4  made  the case for  more transparent,  efficient and 
accountable  public  procurement  systems.  This  requires  a  shift  from  a  purely  administrative 
approach to a strategically and needs-driven approach, in full compliance with the rules. With 
roughly 14 % of the EU GDP in expenditure each year, public procurement can contribute to 
address  many  of  Europe’s  major  challenges,  especially  in  creating  sustainable  growth  and 
jobs.5  It  can  enable  investment  in  the  real  economy  and  stimulate  demand  to  increase 
competitiveness  based  on  innovation  and  digitalisation,  as  highlighted  in  the  Industry 
Communication6. It can also support the transition to a resource-efficient, energy-efficient and 
circular  economy7  and  foster  sustainable  economic  development  and  more  equal,  inclusive 
societies. 

The  new  generation  of  public  procurement  directives,8  adopted  in  2014,  provides  a 
framework  for  procuring  in  a  more  flexible  way.  They  simplify  public  procurement 
procedures,  improving  access  of  SMEs  to  procurement.  The  overall  objective  is  to  obtain 
better value for public money, to deliver better outcomes for societal and other public policy 
objectives  while  increasing  efficiency  of  public  spending.  Finally,  the  directives’  stronger 
provisions on integrity and transparency target corruption and fraud. 

Although  turning  the  directives  into  national  law  has  been  slow,9  this  modernised  legal 
framework  is  now  in  place  in  a  large  majority  of  Member  States.  The  European  semester 
process10 however, identified many specific areas where improvements in the national public 
procurement  landscape would  contribute  decisively to  competitiveness and  efficiency  gains. 
Also, Member States are not using to their full extent the possibilities of public procurement 
as a strategic tool to support sustainable, social policy objectives and innovation. The time is 
therefore right to focus on the smart application of the new rules in practice. 

With this Communication, the Commission identifies specific areas where change can make 
a  difference  to  the  way  public  money  is  spent  in  the  Member  States,  thus  tangibly 
contributing to growth and jobs in the EU. It outlines the Commission’s vision of what public 
procurement  in  Europe  could  and  should  be  in  the  near  future.  While  fully  recognising  the 
powers of the Member States and their public authorities, the Commission commits to firmly 
support  a  change  of  the  public  procurement  culture  in  Member  States.  This  needs  strong 
political  ownership  at  all  levels  of  government  and  a  step  change  in  the  way  public 
procurement  is  carried  out.  The  Commission  therefore  calls  for  a  broad  partnership  with 

4 COM(2015) 550 final ‘Upgrading the Single Market: more opportunities for people and business’. 
5 https://ec.europa.eu/commission/priorities/jobs-growth-and-investment/investment-plan_en . 
6 COM(2017) 479 final 
7 See COM/2014/0398 final/2 ‘Towards a circular economy: A zero waste programme for Europe’. 
8 As part of the 2014 reform, Directive 2014/23/EU (concessions), Directive 2014/24/EU (general) and Directive 2014/25/EU (utilities) were 
adopted.  
9 Several Member States have not yet transposed at least one of the three directives. 
10 In 2017, seven Member States received Country Specific Recommendations related to public procurement. 

3 

 
 
                                                 
and  between  Member  States’  authorities  at  all  levels  of  government  and  other  stakeholders, 
with clear mutual commitments. 

2. 

PROCUREMENT TODAY: CHANGE IS HAPPENING, CHALLENGES REMAIN 

At EU level, several initiatives launched in the past years are starting to bear fruit. The 
legal framework in place has helped to improve and integrate further procurement markets of 
Member  States.  The  creation  of  a  single  EU  procurement  market  is  a  major  achievement 
compared to other regions of the world. Data show that total cross-border procurement (direct 
and indirect) has increased in recent years, to around 23 %11of the total value of procurement 
in the EU, although there is still room for improvement. As announced in the Communication 
‘Better governance for the single market’12 the Commission provided an extensive assistance 
to the Member States during the process of turning the new directives into national law. In the 
context of the European Structural and Investment Funds (ESIF), Member States have to meet 
the  preconditions  on  procurement,  which  should  guarantee  that  the  basic  framework 
conditions  for  efficient  and  effective  investments  co-financed  by  the  funds  are  in  place. 
Reform  processes  should  continue  in  the  Member  States,  with  the  full  support  of  the 
Commission. 

In several Member States, encouraging steps have been taken in recent years to radically 
reform  procurement  practices  or  structures.  In  France,  for  example,  the  State  Purchasing 
Directorate  was  created  in  March  2016  to  define  the  State’s  purchasing  policy  and  deliver 
training to public buyers. In Ireland, a central purchasing body13 was set up in 2014, with a 
clear  mandate  to  improve  the  management  of  public  spending  through  the  extensive  use  of 
market  and  other  procurement  data.  In  Italy,  an  average  saving  of  23 %  was  achieved  by 
creating  a  coordinated  system  of  identifying  needs  and  procedure  for  cooperative 
procurement.  In  the  HAPPI14  project,  innovative  solutions  for  healthy  aging  have  been 
procured  jointly  by  contracting  authorities  in  several  Member  States.15  Slovakia  has  put  in 
place  a  contract  register  that  gives  public  access  to  all  contracts  concluded  by  the  public 
authorities  in  the  country,  thus  improving  transparency  and allowing  for  public  scrutiny.  40 
public  authorities  from  8  EU  countries  calculated  that  the  more  than  100  tenders  launched 
under the EU funded GPP 2020 project16, led to savings of more than 900,000 tons of CO2 
equivalent.  

Change can also happen bottom-up. The ‘Pact of Amsterdam,’17 a broad partnership agreed 
in  May  2016  among  a  large  number  of  stakeholders  and  institutions,  including  urban 
authorities,  aims  at  a  balanced,  sustainable  and  integrated  approach  to  deal  with  urban 
challenges.  Procurement  is  one  of  the  key  means  to  achieve  this,  including  through 
innovative,  green  and  responsible  public  procurement.  Such  examples  can  inspire  others  to 
follow similar paths, taking into account their specificities. 

11 A recent Commission study showed that direct cross-border procurement accounted for 3.5% of the total value of contracts during 2009-
2015. Indirect cross-border procurement (through their foreign subsidiaries) accounted for above 20%. These figures do not take into account 
the increasing international trade within supply chains. 
12 http://ec.europa.eu/internal_market/strategy/docs/governance/20120608-communication-2012-259-
2_en.pdf  
13 The Office of Government Procurement ogp.gov.ie/ 
14 Healthy Ageing Public Procurement of Innovations. http://www.happi-project.eu/  
15 More than 20 healthcare organisations from France, Italy, Luxembourg, Belgium or Netherlands purchased HAPPI solutions. 
16 http://www.gpp2020.eu/home/ GPP 2020 aimed to mainstream low-carbon procurement in Europe in support of the EU's climate goals. 
17 http://ec.europa.eu/regional_policy/sources/policy/themes/urban-development/agenda/pact-of-amsterdam.pdf  

4 

 
 
                                                 
However, these positive developments often still remain isolated good practices and need to 
be embedded  in  a wider movement, encouraging also others to join and to  learn from these 
experiences. Several indicators show that there is much room for improvement. 

Strategic  procurement  possibilities  are  not  sufficiently  used.  55 %  of  procurement 
procedures  still  use  the  lowest  price  as  the  only  award  criterion.  The  public  procurement 
directives  leave  public buyers entirely free to  opt  for purchases  based on cost-effectiveness, 
quality-based criteria18. Yet,  most  economically  advantageous tenders on the basis  of a cost 
effectiveness approach which may include social, environmental, innovative, accessibility or 
other qualitative criteria19 are still underused.  

On  the  innovation  side,  analyses  show  that  innovation  procurement  is  hampered  by  various 
barriers.20 One way of improving the situation could consist in a wider use of the innovation 
partnerships  procedure.  This  tool,  whereby  market  players  are  invited  to  bring  innovative 
solutions,  has  been  set-up  by  the  2014  directives  to  meet  the  specificities  of  innovation 
procurement,  as  well  as  to  increase  the  legal  certainty  and  reduce  the  innovation  inherent 
risks. To date, 17 innovation partnership procedures have been initiated. 

Public  procurement  relies  on  open  competition  to  deliver  the  best  value  for  public  money. 
This  competitive  process  is  either  not  present  or  it  is  losing  intensity.  5 %  of  public 
contracts  published  in  TED  are  awarded  after  negotiation,  without  a  call  for  tender  being 
published. Between 2006 and 2016, the number of tenders with only one bid has grown from 
17 %  to  30 %.  The  average  number  of  offers  per  tender  fell  from  five  to  three  in  the  same 
period.  This  shows  that  companies  have  more  difficulties  accessing  procurement  markets, 
especially  across  borders.  SMEs  win  only  45 %  of  the  value  of  public  contracts  above  EU 
thresholds, clearly below their weight in the economy. 

Often,  public  procurement  is  still  considered  as  a  mere  administrative  procedure  by  which 
public authorities purchase the basic products, services or works required for their operations. 
This is exemplified by the fact that clear and consolidated procurement data are often not 
available. There is no EU-wide consensus on which data need to be collected and for what 
purpose. In many Member States, central authorities are unable to indicate the exact size of 
public procurement spending in their country, despite the huge amounts of money involved. 
In such cases, public scrutiny is largely absent, there is no possibility for a data-driven policy-
making and even budgetary control is hampered. 

In  the  same  way,  the  digital  transformation  of  public  procurement  is  slow.  In  a  2016 
survey,  only  four  Member  States  rely  on  digital  technologies  for  all  major  steps  of  the 
procurement process21. Member States are not yet using the advent of new technologies as an 
opportunity to simplify and accelerate their procurement procedures. 

Contracting authorities are rarely buying together, as only 11 % of procedures are carried 
out by cooperative procurement. Buying in bulk often leads to better prices and also offers an 
opportunity  to  exchange  know-how  and  obtain  better  quality.  Although  not  all  types  of 

18 The 2014 public procurement directives explicitly allow Member States to restrict the use of price or cost alone as award criteria.  
19 which could include also assessment of the external costs, over the full-life cycle of a project 
20 See Study on ‘Strategic use of public procurement in promoting green, social and innovation policies’ https://ec.europa.eu/growth/single-
market/public-procurement/studies-networks_en  
21 E-notification; E-access to tender documents; E-submission; E-evaluation; E-award; E-ordering; E-invoicing; E-payment. 

5 

 
 
                                                 
purchases  are  suitable  for  aggregation,  overall  low  aggregation  rates  suggest  lost 
opportunities. 

It is  argued that  procurement  procedures  are too  complex  and  suffer  from  an excessive 
administrative  burden,  even  after  the  major  reform  and  simplification  of  EU  rules 
undertaken  in  2014,  mentioned  above.  There  are  even  more  complexities  for  transnational 
infrastructure  projects  which,  by  their  very  nature,  are  not  standard  as  they  involve  various 
actions to be implemented in different Member States. The real degree of complexity depends 
also on how the rules are applied in practice and the extent to which the new tools are used. 
Procurement  can  be  further  streamlined  by  standardising  processes,  sharing  best  practices 
among authorities and through the professionalisation of public procurement.  

3. 

MOVING FORWARD: A BROAD PARTNERSHIP FOR COMMON SUCCESS 

To  enhance  the  recognition  of  the  strategic  dimension  of  public  procurement  and  improve 
public procurement in practice, there is a need for strong and broad political ownership at 
all  levels  of  government.  There  is  a  significant  potential  for  improvement  if  authorities 
commit  to  seriously  take  the  issue  in  their  hands.  Instead  of  considering  procurement  as  an 
administrative obligation, there is much to be gained from a proactive policy approach. 

The  Commission  is,  alongside  well  established  legal  cooperation  and  assistance,  keen  to 
engage  with  Member  States  and  stakeholders  on  the  issues  they  face  and  where  EU-wide 
actions  and  support  can  bring  clear  added  value.  In  order  to  carry  out  the  necessary 
improvements  the Commission  proposes  a broad collaborative  partnership to  move to  an 
effective,  transparent,  digital,  smart  public  procurement  system  fully  responsive  to  the 
challenges of today’s changing environment. Each partner will have their role to play, but the 
commitments  should  be  mutually  reinforcing.  Several  simultaneous  and  coordinated 
improvements can yield higher overall benefits than the simple sum of all individual efforts, 
through the leveraging of multiplier effects. 

The partnership could cover the following stakeholders and aspects: 

  National authorities could enhance the organisation of procurement, by formulating 
clear  national  procurement  strategies,  by  ensuring  a  more  efficient  coordination  at 
national and regional levels, by providing clear national rules and practical guidelines, 
exchange  good  practices,  put  in  place  competence  support  centres  and  centralised 
purchasing  bodies,  increasing  transparency  and  providing  speedy,  independent,  and 
equitable review procedures. 

  Regional  and 

local  authorities  could  cooperate  more  and  use  aggregated 
procurement,  promote  strategic  and  digital  procurement  and  professionalise  their 
public buyers. 

  The Commission would commit to work in a collaborative way and further develop a 
range of support tools, including guidelines and best practices on multiple key areas in 
order  to  make  procurement  as  simple  and  effective  as  possible.  At  the  same  time,  it 
will  continue  to  pursue  its  enforcement  policy  and  use  its  discretionary  power  in  a 
strategic way to focus on the most important breaches of EU law affecting the interests 
of citizens and businesses.  

6 

 
 
 
 
 
  Businesses, 

industry  and  business  associations  could  e.g.  encourage  higher 
participation in procurement markets, also beyond their national borders, by drawing 
up evaluation models for comparing different solutions on an objective basis. Review 
procedures  should  be  used  in  a  responsible  way.  Prior  market  consultations  are  an 
important phase to improve procurement expertise and should also involve SMEs. 

  Stakeholders:  There  is  a  growing  attention  to  participatory  budget  approach  across 
many  cities  and  communities  which  could  enable  increased  attention  to  strategic 
criteria promoted by local groups. Journalists and the public should use the available 
data to exercise public scrutiny of procurement and to hold public buyers accountable. 
Scientists and academics have an important role, also by developing analytics and data 
models.  

At EU level, the relevant committees of the European Parliament and the Competitiveness 
Council  could  become  a  forum  for  a  continued  political  debate  on  public  procurement  in 
Member States. The partnership could also materialise through voluntary structured dialogues 
on  procurement,  which  would  be,  where  relevant,  fully  aligned  with  the  European  semester 
process.  These  dialogues  would  be  implemented  in  a  collaborative  manner  between  the 
Commission  and  Member  States.  This  also  allows  a  differentiated  approach,  focusing  on 
delivering structural reforms and compliance where necessary and more advanced support for 
others. Similar processes can also be set-up at national level, involving relevant stakeholders 
in a genuine collaborative process. As at present 70 % of the EU population is concentrated in 
urban  areas,  the  urban  agenda  proposed  by  the  Commission  to  provide  a  pan-European 
platform for multi-layer stakeholder engagement has an important role to play. 

Implementing  smart  public  procurement  systems  which  are  fit  for  the  21st  century  requires 
commitment and determination to modernise, digitalise and professionalise. Clear agreement 
on how success is to be measured is needed, accompanied by clear milestones and monitoring 
of  progress.  Authorities  at  all  levels  and  stakeholders  —  given  the  heterogeneous  public 
procurement  systems  and  the  divergent  level  of  maturity  and  advancement  in  individual 
Member States — are best placed to determine the content and level of their commitments. 

The  Commission  is  ready  to  enable  such  efforts  and  to  foster  the  exchange  of  information, 
knowledge and experience, also at national and regional level. It also commits to a number of 
supporting  actions  listed  in  the  Appendix.  It  is  looking  forward  to  a  broad  policy  dialogue, 
cooperation  and  collaboration  with  national  and  local  authorities  and  other  stakeholders  for 
the establishment of voluntary, yet strong commitments. The Commission is also working on 
improving its own procurement practices to make greater use of strategic criteria22. 

4.  WHAT NEEDS TO IMPROVE — SIX STRATEGIC PRIORITIES 

The  Commission  has  identified  six  priority  areas,  where  clear  and  concrete  action  can 
transform public procurement into a powerful instrument in  each Member State’s economic 
policy toolbox, leading to substantial benefits in procurement outcomes. 

22 In line with the Circular Economy Action Plan, the Commission will lead by example, by making sure that Green Public Procurement 
(GPP) is used as widely as possible in its own procurement, and by reinforcing the use of GPP in EU funding. For example, efforts are 
ongoing within the Commission in a number of areas such as the reduction of single-use plastics . 

7 

 
 
 
                                                 
a.  Ensuring wider uptake of strategic public procurement 

Strategic public  procurement should play a bigger role for central and local  governments to 
respond  to  societal,  environmental  and  economic  objectives,  such  as  the  circular  economy. 
Mainstreaming  innovative,  green,  and  social  criteria23,  a  more  extensive  use  of  pre-market 
consultation  or  qualitative  assessments  (MEAT24)  as  well  as  procurement  of  innovative 
solutions  at  the  pre-commercial  stage  requires  not  only  a  highly  competent  pool  of  public 
procurers  but  above  all  policy  vision  and  political  ownership.  Some  Member  States  made 
MEAT,  including  green  criteria  mandatory  for  their  procurement  processes.  Others  could 
consider  setting  voluntary  targets  to  monitor  the  uptake.   In  any  event,  to  achieve  optimum 
outcomes in public procurement, strategic criteria need to be applied systematically. This 
can  be  enabled  by  extensive  practical  support,  such  as  dissemination  of  standards, 
methodologies  for  benchmarks,  regular  updates  of  labels25  and  evaluation  criteria  and 
availability of a library of good practice. 

For  example,  for  green  procurement,  the  Commission  will  make  a  proposal  to  amend  the 
Clean  Vehicles  Directive  2009/33/EC26,  issue  an  updated  version  of  the  ‘GPP  Training 
Toolkit’ and intends to develop instruments for voluntary use to calculate the life-cycle costs 
for certain products. On social public procurement the existing guidance will be updated. A 
collaborative  approach  will  be  adopted  for  such  update;  it  will  start  with  a  stakeholder 
consultation  to  gather  suggestions  on  the  scope  of  the  guidance  and  the  issues  it  should 
address, including on how to best integrate the demand-side function for social innovation and 
social entrepreneurship. The proposed European Accessibility Act27 aims at setting common 
functional  accessibility  requirements  for  disabled  and  older  persons.  On  innovation,  an 
overview of the enabling policy and implementation framework and guidance on innovation-
friendly public procurement procedures is under preparation.  

While the wider uptake of strategic procurement is a priority, the Commission acknowledges 
that  in  many  Member  States  there  are  still  shortcomings  in  the  proper  functioning  of  the 
public procurement system. The Commission will continue to provide support and guidance 
to  achieve fully operational public procurement systems in those countries, before engaging 
further into mainstreaming green, social and innovative criteria. 

A targeted approach is needed for priority sectors, such as construction, healthcare and the 
IT  sector,  because  of  their  leverage  effect,  specificities  and  particular  challenges,  including 
the rapid technological and market evolution. The Commission initiative for a voluntary ex-
ante  assessment  mechanism  for  large  infrastructure  projects28  can  be  seen  in  this  context. 
There  are  already  initiatives  and  instruments  such  as  promoting  value-based  healthcare 
procurement, building information modelling29 and life-cycle thinking approaches to support 
procurement of sustainable public buildings30 or the European catalogue of ICT standards for 
public procurement, to improve interoperability and avoid vendor lock-in.  

23 which should also include the obligation of accessibility for persons with disabilities 
24 Most economically advantageous tender which allows for giving more prominence to quality. 
25 Such as Ecolabels, energy or fair trade labels. 
26 as announced in the Commission Work Programme 2017 
27 COM/2015/0615 final 
28 Accompanying this Communication 
29 Building Information Modelling is a digital form of construction and asset operations. The European Commission has co-funded the 
production of a handbook for the Introduction of BIM in public procurement (see http://www.eubim.eu/handbook/). 
30 Such as LEVEL(s): http://ec.europa.eu/environment/eussd/buildings.htm 

8 

 
 
                                                 
Alongside these, the defence and security sectors  need  to be specifically targeted, including 
cybersecurity31. Work is already well advanced in the context of the European defence action 
plan.  The  focus  of  the  action  plan  is  on  the  effective  implementation  of  the  Defence 
Procurement  Directive,  with  the  view  to  provide  opportunities  to  European  companies 
irrespective of their size and location. This implies:  

  providing guidance on certain aspects of the Directive;  
  establishing periodic reports (scoreboards) on the application by Member States;  
  discussing with Member States on enforcement; and 
  promoting  initiatives  to  improve  cross-border  market  access  for  SMEs  and  sub-

suppliers (recommendation to Member States and engagement with industry). 

b.  Professionalising public buyers 

People  with  the  right  skill-set  are  needed  to  drive  the  change.  The  low  level  of 
professionalisation  of  public  buyers32  is  a  systemic  problem  in  many  Member  States. 
Improving procurement skills at all stages of the procurement process, including e-skills, is of 
vital importance. The changing culture and the increased use of strategic public procurement 
require  a  wider  use  of  flexible  practices,  knowledge  of  markets  and  innovative  tools.  The 
public sector needs to put in place a comprehensive strategy to counteract risk aversion and to 
attract, train and develop talent and skills across the public procurement landscape. 

Member  States  are  at  different  stages  in  their  journey  towards  professionalisation  but  it  is 
important  that  all  commit  to  that  journey.  Sharing  experiences  will  enable  them  to  improve 
their  procurement  practice  and  will  increase  the  impact  and  reputation  of  procurement  in 
delivering  public  policy  objectives.  Long-term  professionalisation  strategies  at  national 
level are essential to have the right people with the right skills and tools in the right place at 
the right time to deliver the best outcomes. 

The  Commission  commits  to  assist  Member  States  in  their  efforts  in  devising  and 
implementing such strategies through a Recommendation on Professionalisation adopted with 
this  Communication,  setting  up  a  European  competence  framework,  establishing  an  E-
competence  centre  for  information  knowledge  and  the  sharing  of  good  practice  and  via 
targeted  assistance  for  capacity  building  and  training  offered  by  country  related  support 
instruments available across different Commission programmes.33  

c.  Improving access to procurement markets 

SMEs  are  key  for  job  creation,  growth  and  innovation,  but  they  have  difficulties  finding 
access to procurement, both within the EU and in international markets. Currently, SMEs win 
45 %  of the aggregate contract value above  EU thresholds  —  directly or  as joint  bidders or 
subcontractors.  The  2014  directives  include  measures34  that  should  facilitate  the  access  of 
companies  including  SMEs  to  public  procurement,  also  cross-border.  These  enhanced 
procurement opportunities for SMEs need to be communicated more vigorously to the general 

31 As set out in the recent Cybersecurity Strategy - JOIN(2017) 450 final 
32

According to a study (Bandiera, Prat, Valletti, 2008), the lack of professional procurement skills is an even more important problem than 
corruption: 83% of the resources wasted in public purchasing are due to the lack of professionalisation and incentives and only 17% due to 
corruption. 
33 For example SRSS, TAIEX_REGIO Peer 2 Peer programme under ERDF and CF funds. 
34 Measures to improve SMEs’ access to public procurement markets include an encouragement to divide contracts into lots, a limit to the 
turnover required to participate in a tender procedure and a reduction in documentation requirements. 

9 

 
 
                                                 
public,  companies  and  contracting  authorities.  This  is  particularly  important  in  view  of 
promoting  more  cross-border  procurement.  The  aim  is  to  increase  the  SME  share  of  public 
procurement  in  line  with  their  overall  weight  in  the  economy.  The  Commission  has  also 
initiated specific actions to facilitate access to procurement for SMEs, such as projects funded 
by the COSME Programme. Moreover, specifically in the defence sector, actions have been 
launched  to  facilitate  cross-border  market  access  for  SMEs  as  presented  in  the  European 
defence action plan35. 

Another  way  to  improve  access  is  to  build  trust  among  market  players,  including  SMEs,  to 
participate in procurement procedures. This can be done by offering fair, efficient possibilities 
for problem solving and an independent review of procurement decisions. The remedies 
directives36 have been recently evaluated37 and a network of first instance review bodies has 
been  set-up  in  March  2017.  The  Commission  will  continue  to  monitor  the  situation  in  this 
area,  provide  guidance  and  actively  promote  cooperation  and  exchanges  of  best  practice 
between  Member  States,  including  review  and  appeal  bodies,  to  improve  the  efficiency  and 
quality of the review systems across the EU. 

The EU is the world’s most open market for procurement, but access for our companies in 
other countries is not always reciprocal. Major EU trade partners maintain discriminatory 
measures affecting EU businesses by granting preferential treatment to national bidders.38 The 
Commission's  reflection  paper  on  harnessing  globalisation  stressed  that  restoring  a  level-
playing field is more than ever necessary and called for a rapid adoption of an international 
procurement  instrument39.  This  would  increase  the  European  Union's  leverage  in  its 
negotiations with trade partners. There is an urgent need to unlock the current stalemate in the 
Council with regard to this instrument. 

The  Commission  will  continue  to  lead  efforts  to  promote  access  to  procurement  markets, 
helping  EU  companies  to  sell  abroad.  In  this  context,  the  Commission  encourages  non-EU 
countries  to  join  the  WTO  Agreement  on  Government  Procurement  and  strives  to  conclude 
ambitious  procurement  chapters  in  the  free  trade  agreements.  These  aim  to  ensure  that  EU 
businesses have  a legal right to  participate in tenders  in  third countries, including  accession 
and  partner  countries  of  the  EU's  neighbourhood  policy,  on  an  equal  footing  with  domestic 
companies.  

The  Commission  also  promotes  a  favourable  regulatory  environment  in  non-EU  countries40 
by promoting the development of global and convergent standards in procurement.  

d.  Increasing transparency, integrity and better data 

Reliable data are essential to prepare appropriate policy responses. The digital transformation, 
the  growing  wealth  of  data  in  general  and  the  availability  of  open  data  standards  offer 
opportunities to create better analytics for needs-driven policy-making and warning systems 
to signal and tackle corruption41 in public procurement. Better and more accessible data on 

35 COM(2016)950 
36 Directive 92/13/EEC and Directive 89/665/EEC, as amended by Directive 2007/66/EC 
37 COM/2017/028 final. 
38 Such as the policies ‘Buy American’, ‘Make in India’ or ‘Buy Chinese’. 
39 COM(2016) 34 final. 
40 Regulatory and policy dialogues and cooperation programmes will be developed in procurement markets such as India, Brazil and China. 
41 As reflected in some Country Specific Recommendations in the European Semester process. 

10 

 
 
                                                 
procurement should be made available42 as it opens a wide range of opportunities to assess 
better  the  performance  of  procurement  policies,  optimise  the  interaction  between  public 
procurement  systems  and  shape  future  strategic  decisions.  Electronic  procurement  systems 
must  produce  good  quality  data,  but  —  even  more  importantly  —  policy  makers  must  use 
these data and share them with other interested parties. They also provide a means to detect 
irregularities.  At  EU  level,  the  Commission  will  propose  new  e-forms43  to  improve  the 
collection of data. 

Access  to  public  procurement  data  should  enable  the  dialogue  with  civil  society  and  holds 
governments more accountable. Public authorities are thus better equipped to fight fraud and 
corruption.44  To  this  end,  setting  up  publically  accessible  contract  registers45  is  strongly 
recommended, providing transparency on awarded contracts and their amendments.  

Enabling  the  reporting  of  corruption  by  setting  up  effective  reporting  mechanisms  and 
protecting  whistleblowers  against  retaliation  can  also  contribute  to  improving  the 
transparency of public procurement and saving public money.46 The Commission is currently 
assessing the need, legal feasibility and scope for horizontal or further sectorial action at EU 
level for strengthening the protection of whistleblowers. 

The procurement directives offer ample opportunities to move towards corruption-free, fully 
transparent  public  procurement  procedures,  i.e.  by  introducing  mandatory  e-Procurement  by 
2018  and  by  strengthening  the  provisions  on  conflicts  of  interest47  or  the  extension  of 
exclusion grounds in respect of bidders. Awareness of these possibilities needs to be raised at 
all levels of government. 

Collusion is a recurring feature in some public procurement markets. It may add up to 20 % to 
the  price  otherwise  paid  in  competitive  markets.48  Competition  authorities  have  been 
entrusted  with  investigation  and  enforcement  powers  to  punish  collusive  practices  but  only 
when collusion is suspected to have already occurred. The Commission will therefore develop 
tools  and  initiatives  addressing  this  issue  and  raising  awareness  to  minimise  the  risks  of 
collusive behaviours on procurement markets. This will include actions to improve the market 
knowledge of contracting authorities, support to contracting authorities careful planning and 
design of procurement processes and better cooperation and exchange of information between 
public procurement and competition authorities. The Commission will also prepare guidelines 
on the application of the new EU procurement directives on exclusion grounds on collusion. 

e.  Boosting the digital transformation of procurement 

New digital technologies offer great opportunities to streamline and simplify the procurement 

42 While respecting the fundamental rights, and in particular the right to protect personal data, to the extend applicable 
43 e-Forms is an initiative announced in the Single Market Strategy to revise the standard forms used for public procurement procedures. 
44 According to the Commission’s 2014 Anti-Corruption Report, corruption costs EU society around EUR 120 billion per year. According to 
a  2013  study  (PWC  and  Ecorys  for  the  European  Commission),  the  overall  direct  costs  of  corruption  in  public  procurement  in  only  five 
sectors (road and rail, water and waste, urban/utility construction, training, and research and development) and in only eight EU countries 
ranged from EUR 1.4 billion to 2.2 billion. 
45 To the extent that such register will contain personal data, it shall comply with the requirements of the data protection legislation. 
46 According to the 2017 study ‘Estimating the economic benefits of whistleblower protection in public procurement' (Milieu Ltd, prepared 
for  the  European  Commission),  the  potential  benefits  of  effective  whistleblower  protection  for  the  EU  as  a  whole  in  the  area  of  public 
procurement are in the range of EUR 5.8 to 9.6 billion each year. 
47 Minimum standards in the definition of conflicts of interests and the obligation of EU countries to take appropriate measures to detect, 
prevent and tackle conflicts of interests. 
48  See  Anderson  and  Kovacic,  ‘Competition  Policy  and  International  Trade  Liberalisation:  Essential  Complements  to  Ensure  Good 
Performance in Public Procurement Markets’, PPLR, 18 (2009): 67. 

11 

 
 
                                                 
process  through  the  roll-out  of  electronic  public  procurement.  The  procurement  directives 
provide  that  the  electronic  submission  of  tenders  will  be  mandatory  by  October  2018. 
However,  the  full  benefits  of  e-procurement  will  only  be  captured  if  the  whole  public 
procurement process undergoes digital transformation. This includes many phases, from 
planning, notification and submission to invoicing, payment and archiving. 

New  technologies  provide  the  possibility  to  rethink  fundamentally  the  way  public 
procurement,  and  relevant  parts  of  public  administrations,  are  organised.  There  is  a  unique 
chance to reshape the relevant systems and achieve a digital transformation. 

The Commission will further improve and promote the tools and standards49 it has developed 
to  enable  this  digital  transformation  of  procurement  at  national  level,  as  well  as  implement 
tools in complementary areas, such as the Single Digital Gateway50 and the European services 
e-card.51 It will continue supporting Member States on a bilateral basis by identifying areas of 
concern  in  the  digital  transformation  of  public  procurement.  This  includes  issues  with  the 
interoperability  of  solutions  or  definitions52,  setting  up  of  appropriate  policy  architectures, 
skills and rallying the stakeholders needed for implementing the reforms in an efficient way. 

f.  Cooperating to procure together 

The aggregation of public purchasing has started to take hold across the EU.53 As aggregators 
central  purchasing  bodies  (CPBs)  manage  increasing  shares  of  public  procurement  markets. 
They are becoming important players in promoting public procurement reform, including the 
implementation of a strategic approach. They create the possibility to increase the leverage of 
public purchasers, which is indispensable in certain markets dominated by a small number of 
market operators. Depending on the situation, CPBs can be set-up with a general mandate at 
national level, target specific sectors (such as  health, IT) or specialise in regional/municipal 
procurement. 

The large procurement volumes of CPBs could be used to leverage strategic procurement, e.g. 
by  setting  procurement  targets.  Their  role  in  the  standardisation  of  public  procurement 
processes  and  market  insight  also  represents  a  key  element  for  the  professionalisation  of 
public  administrations  and  it  enables  SME-friendly  procedures.  The  aggregation  of 
knowledge  and  expertise  creates  spill-over  effects,  as  CPBs  often  provide  support  and 
consulting services for other contracting authorities. 

There is also much to be gained from a stronger cooperation among contracting authorities54. 
Joint cross-border procurement, where contracting authorities from different countries jointly 
organise  their  procurement  procedures,  is  greatly  facilitated  by  the  new  EU  rules.  Several 
recent  examples  demonstrate  the  feasibility  of  such  partnerships.  Also,  the  procurement  of 
large  infrastructure  projects  that  are  crossing  national  borders  requires  strong  cooperation 

49 Such as eCertis, the European Single Procurement Document (ESPD), the European Standard for eInvoicing. 
50 COM(2017)256 
51 A proposal (COM 2016 (823) and COM 2016 (824)), adopted by the Commission in January 2017 and currently being discussed by the 
European Parliament and Council, introducing an  harmonised EU-level procedure for cross-border expansion of construction and business 
services in the internal market which includes the approval of economic operators entered into the official lists referred to in Article 64 of 
Directive 2014/24/EU. 
52 benefiting from existing interoperability solutions commonly agreed at EU level such as eIdentity, eSignature, eDelivery, eInvoicing 
53 Demand aggregation refers to contracting authorities or others operating through Central Purchasing Bodies (CPBs) which act as 
wholesalers or intermediaries. 
54 For example, the joint procurement of clean vehicles for public transport by multiple local authorities. 

12 

 
 
                                                 
among  procuring  entities  and  the  ability  to  speak  a  common  ‘language’.  In  certain  areas, 
notably  the  infrastructure  projects  on  the  Trans-European  Transport  Network,  a  deeper 
analysis  of  the  roots  of  limited  cross-border  procurement  will  be  undertaken  and  specific 
measures may be considered55. 

In  this  context,  the  Commission  will  further  raise  awareness  and  promote  good  practice  for 
joint cross-border procurement. 

5. 

CONCLUSION 

Public authorities are, in general, striving to create a fairer society based on equal opportunity, 
sustainable economic growth and wide market participation,  while providing for sustainable 
public finances. Public procurement will remain a crucial instrument of policy delivery. Given 
its  magnitude  in  public  spending,  it  can  empower  governments  to  achieve  key  policy 
outcomes, if used as a strategic tool. 

A smart use of public procurement can help tackling global challenges such as climate change 
and  resource  scarcity  or  the  ageing  society.  It  supports  social  policies  and  accelerates  the 
transition  to  more  sustainable  supply-chains  and  business  models.  It  can  improve 
competitiveness  and  enable  SMEs’  access  to  procurement  opportunities.  Transparent  and 
professional public buyers will be able to spend efficiently and to fight corruption. 

Several Member  States  have  already  started  to  develop  a  strategic  approach  to  procurement 
policies, complemented by promising local initiatives. More can be achieved through working 
together  and  drawing  inspiration  from  each  other.  The  Commission  is  keen  to  play  an 
enabling  role  in  this  transformation  process  towards  modern,  innovative  and  sustainable 
procurement  systems  fit  for  the  21st  century,  driven  by  an  inclusive  and  committed  EU 
partnership for smart public procurement. 

55  See  on-going    public  consultation    for  Streamlining  the  implementation  of  the  Trans-European  Transport  Network  (TEN-T):  
https://ec.europa.eu/transport/themes/infrastructure/consultations/2017-ten-t-implementation_en  

13 

 
 
 
 
                                                 
APPENDIX — Overview of EU procurement implementation initiatives by end 2018 

This  Communication  calls  for  a  broad  partnership  to  improve  the  functioning  of  public 
procurement  practice  in  the  EU.  The  Commission  invites  Member  States,  other  authorities 
and  public  procurement  stakeholders  to  commit  to  voluntary,  yet  concrete  actions  in  this 
regard. For its part, the Commission indicates its commitment to deliver between now and 
the end of 2018 on the following specific actions: 

1. Ensuring wider uptake of strategic public procurement 

-  Establish a voluntary ex-ante assessment mechanism for large infrastructure projects; 
-  Update guidance on green and social procurement and provide guidance on innovation 

procurement and; 

-  Exchange  good  practices  regarding  strategic  procurement,  including  key  sectors 

(construction, healthcare, IT). 

2. Professionalising public buyers 

-  Adopt a recommendation on the professionalisation of public buyers; 
-  Develop a European competence framework for public procurement with the essential 

skills and competences procurers need;  

-  Create an e-competence centre, as a central information portal and an e-library of good 

practice on procurement; and 

-  Establish an EU-wide network of National Innovation Procurement Centres. 

3. Improving access to procurement markets 

-  Further improve access to non-EU procurement markets through trade agreements; 
-  Strengthen the remedies system by further networking of first instance review bodies 

and guidance notices on remedies; and 

-  Launch pilots to boost SME participation via business intermediaries and innovation 

brokers. 

4. Increasing transparency, integrity and better data 

- 
Issue new procurement standard forms to improve the collection of data; 
-  Promote the establishment of publicly accessible contract registers; and 
-  Provide  guidelines  on  practical  application  of  new  integrity  provisions  and  on 

exclusion grounds relating to collusion, and set-up a database on irregularities. 

5. Boosting the digital transformation of procurement 

-  Extend the scope of the e-Certis tool and further improve IT systems; and 
-  Support the implementation of the European Single Procurement Document, the 'once-

only principle and electronic invoicing in the Member States. 

6. Cooperating to procure together 

-  Promote joint cross-border public procurement, including innovation by large buyers;  
-  Launch a pilot training on 'SME-friendly policies in Central Purchasing Bodies'. 

14