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The EU Public Procurement Act: A Single Rulebook for Contracts and Concessions

On 9 September 2026, the European Commission presented its proposal for a Regulation on public contracts and concessions — the “Public Procurement Act” (COM(2026) 590 final). If adopted, it will repeal the three 2014 Directives (2014/23/EU on concessions, 2014/24/EU on “classic” public procurement and 2014/25/EU on utilities) and replace them with a single Regulation, directly applicable in every Member State without national transposition.

 

The text does not stop there: it also amends around a dozen other EU instruments — from the Batteries Regulation to the Corporate Sustainability Due Diligence Directive — to absorb scattered exclusion grounds and environmental obligations into one coherent framework.

 

The choice of legal basis is itself worth noting: the Commission relies on Article 114 TFEU (internal market approximation) and expressly grounds the treatment reserved to third-country operators in the Court of Justice’s recent rulings in Kolin (C-652/22) and CRRC Qingdao (C-266/22), which place that question within the common commercial policy — an exclusive EU competence. This closes the door to any autonomous national rules on the access of foreign tenderers.

Fewer procedures, more flexibility

 

The current menu of procedures is streamlined into two general ones, each usable with or without selection criteria and with or without negotiation: an open procedure, replacing the former open and restricted procedures, and a dynamic procedure, replacing the dynamic purchasing system.

 

A distinct innovation procedure remains available for buyers seeking solutions to a defined societal challenge for which no existing product yet exists — with, notably, intellectual property rights defaulting to the economic operator rather than the buyer. A separate chapter groups the remaining directly negotiated, non-competitive routes (sole supplier, extreme urgency, complementary purchases).

A wider net for exclusion, and no more full subcontracting

Mandatory exclusion grounds rise to eleven, adding environmental offences, breaches of EU restrictive measures (sanctions), fraudulent use of non-cash payment instruments, and child sexual abuse and exploitation offences to the existing list. They apply for five years from the final judgment, and self-cleaning is no longer available for mandatory grounds. On the selection side, minimum turnover requirements are capped at 50% of the estimated annual contract value, and prior public-sector experience can no longer, in principle, be required as a condition for participation.

 

Contracts can also no longer be subcontracted in their entirety — nor re-subcontracted in full further down the chain — and buyers gain the right to demand visibility on subcontractors’ identity and share of the works, in particular for security-sensitive or European-preference contracts.

Security, resilience and cybersecurity get their own chapter

One of the more substantial additions is a dedicated chapter allowing buyers to build security and resilience requirements into every stage of a procedure — from critical infrastructure protection and cybersecurity to supply-chain diversification, strategic stockholding and business continuity planning for entities identified as critical.

 

Suppliers designated as “high-risk” under the future Cyber Security Act 2 for critical ICT components must be excluded outright. Separately, Building Information Modelling becomes compulsory for public works contracts worth €25 million or more, with limited derogations and a delegated power for the Commission to lower that threshold over time.

European preference, on an optional-but-adjustable basis

 

Buyers may voluntarily restrict participation to “covered” operators (from the EU, GPA parties, or countries with a relevant trade agreement), require a minimum covered origin for goods and services, grant price or scoring advantages to more “European” tenders, or reject any tender whose covered content falls below 50% of its estimated value. This remains optional at buyer level — but the Commission can make such preference compulsory by delegated act where the Union’s strategic interests require it, and can also restrict a third country’s “covered” status where reciprocity is lacking.

Best price-quality ratio as the default, framework agreements shortened

Award on the basis of the best price-quality ratio becomes the standard, with quality criteria weighted at a minimum of 30% of the total score — rising to 50% for labour-intensive contracts — on a “comply or explain” basis. Framework agreements are capped at three years with a single operator or five years with several, and any resulting contract may not run more than 50% longer than the framework itself. Contract modifications up to 15% of the initial value are deemed non-substantial and require no new procedure, with the existing 50% cumulative cap otherwise unchanged.

Digitalisation, timeline and next steps

Member States will need to connect their national registers to a single electronic eligibility service free of charge by 15 June 2029, feeding into national and EU-level Public Procurement Data Spaces intended to give the Commission a real-time view of procurement activity across the Union. The Commission estimates implementation will cost some €163.5 million between 2028 and 2034, against projected savings of roughly 8.9% per procedure for economic operators and 4.4% for public buyers.

 

The Regulation would enter into application two years after its final adoption, with a review clause after seven years. The text is now entering the ordinary legislative procedure before the European Parliament and the Council, where substantial changes remain possible before final adoption.

eMotio.law can assist you

The Public Procurement Act represents the most significant overhaul of EU procurement law in over a decade, with direct consequences for how contracting authorities design their procedures and how economic operators structure their bids, subcontracting arrangements and compliance processes. Our team closely follows the legislative process and can help you assess the impact of these changes on your ongoing and upcoming procurement activity, and prepare for the transition ahead.

 

Contact Charles-Henri de La Vallée Poussin for more information : charles-henri.delavalleepoussin@emotio.law

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