Contribution to growth: European Public Procurement

       

 

January 15, 2020, Source : European Parliament, Policy Department for Economic, Scientific and Quality of Life Policies
Directorate-General for Internal Policies

Contribution to Growth: European Public Procurement
Delivering improved rights for European citizens and businesses

 

This study evaluates the objectives of legislative actions in the area of public procurement during the 7th and 8th legislature and assesses the contribution of current initiatives to the achievement of EU objectives.

This document provides for a critical analysis of the legal framework of the public procurement regime and identifies the future potential of European public procurement.

This document was prepared by Policy Department A: Economic and Scientific Policy, at the request of the Committee for the Internal Market and Consumer Protection.

The European institutions through the enactment of the Single Market Act [1]

[1 – European Commission, Communication to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions, Towards a Single Market Act, COM(2010) 608 final.]

have identified public procurement as an essential component of competitiveness and growth [2]

[2 – European Commission, Communication, Europe 2020, A strategy for smart, sustainable and inclusive growth, 3.3.2010, COM (2010) 2020 final.]

and as an indispensable instrument of delivering public services[3]

[3 – European Commission, Guide to the application of the European Union rules on state aid, public procurement and the internal market to services of general economic interest, and in particular to social services of general interest, 7.12.2010, SEC(2010) 1545 final. European Commission, Buying Social: A Guide to Taking Account of Social Considerations in Public Procurement, SEC(2010) 1258, final.].

 

Legislative actions during the 7th and 8th legislature have introduced a generation of legal instruments which aim at establishing gradually a homogenous public procurement market in the European Union.

During the 7th and 8th legislature the reforms on public procurement have sought to accomplish unobstructed access to public markets through transparency of expenditure relating to public and utilities procurement, improved market information through the introduction of technology to the application of the procurement rules, elimination of technical standards capable of discriminating against potential contractors, uniform application of objective criteria of participation in tendering and award procedures and regulatory alignment between public sector and utilities procurement.

The achieved reforms of public procurement have met three principal objectives: simplification, modernization and flexibility.

The objective of simplification has been met to a large extent by the introduction of the public sector Directive on supplies, works and services which represents a notable example of codification of supranational administrative law. The main influence for the codification of the public sector Directive can be traced in important developments in the application of the public procurement rules by defining essential legal concepts such as public contracts, contracting authorities, the remit of selection and qualification criteria, and the parameters for contracting authorities to use environmental and social considerations as award criteria and which have influenced public procurement law making.

The objective of modernization has been met mainly as a result of the newly introduced concepts. The ability of private undertakings, which pursue activities of general interest of non-commercial or industrial character to tender for public contracts alongside bodies governed by public law, the introduction of the competitive dialogue to facilitate the award of complex projects such as public private partnerships and trans-European networks, the introduction of framework procurement to the public sector, the use of electronic procurement concepts such as e-auctions and dynamic purchasing systems, the digitization agenda and the introduction of concessions procurement regulation.

The flexibility objective of the public procurement reforms reflects on the relaxation and the disengagement of the public procurement rules in industries that operate under genuinely competitive conditions in the utilities sectors, such as telecommunications.

 

Flexibility is also present at the disengagement of the rules in contractual arrangements such as public-public partnerships and in-house relations, as well as in certain sectors such as water for concessions procurement.

The public procurement rules have established an effective judicial review system and provided for autonomous remedies to Member States legal orders for disputes related to the award of public and utilities contracts.

The public procurement rules have created an environment of convergence and alignment between the public sector and utilities procurement.

 

More details HERE:

Docs : IPOL_STU(2019)626088_EN

Bovis, C., Contribution to Growth: European Public Procurement. Delivering improved rights for European citizens and businesses, Study for the Committee on the Internal Market and Consumer Protection, Policy Department for Economic, Scientific and Quality of Life Policies, European Parliament, Luxembourg, 2018.