The New European Public Procurement Regulation: What Will Change for Contracting Authorities?

Public procurement is on the verge of its biggest reform in over a decade. The European Commission has submitted a legislative proposal that completely overhauls public procurement law. For businesses that work with or for government agencies, this is not some abstract issue from Brussels—it directly affects how contracts are issued, evaluated, and awarded. In this article, we explain what’s changing, why these changes are happening, and what you can do now to position your organization for success.

One set of rules for all of Europe

Anyone who regularly submits bids on public contracts knows how frustrating the differences between member states can be. The Netherlands has its own national rules in addition to the European directives, just like Germany, France, and all other EU countries. That patchwork is coming to an end. The European Commission proposes to merge the three separate procurement directives—for the traditional sector, the utilities sector, and concessions—into a single regulation that applies directly.

The difference from a directive is crucial: a regulation does not need to be transposed by national parliaments and applies immediately in all member states in exactly the same way. For Dutch contracting authorities, this means in practice that the national additions to the Public Procurement Act—such as certain threshold values and additional procedural requirements—will eventually no longer be tenable. The EU rule will become the only rule.

Digitization as the backbone of new procurement practices

One of the most significant changes involves the digital infrastructure surrounding public procurement. The proposal requires each member state to establish a national procurement data platform—the so-called National Public Procurement Data Space. All contracts and contract amendments with a value exceeding €10,000 must be registered on this platform. This is a significantly lower threshold than the thresholds currently in effect for European publication requirements.

At the same time, the eProcurement systems of the individual member states will be linked together via a European interoperability network. As a result, contracting authorities and bidders can operate using the same digital tools, regardless of the country where the contract is being awarded. This significantly lowers the barrier to cross-border bidding—which creates new market opportunities for internationally active businesses.

Digitization also has a regulatory aspect. Member States are required to implement technical measures capable of automatically detecting fraud, corruption, and collusion among bidders. As a result, the professional conduct of public procurement becomes a more regulated and transparent activity, subject to digital oversight.

Transparency: Greater Openness, Even Beyond Major Contracts

In addition to the data requirement, the proposal introduces a new tool for procurement management: the so-called Needs Plan. Contracting authorities will be required to publicly disclose their planned procurement needs annually. This overview provides the market with early insight into what will be put out to bid in the coming period, allowing businesses to better prepare for opportunities.

Market consultations—consulting the market at an early stage before a procurement process formally begins—will become a mandatory part of the preparatory phase. Contracting authorities will therefore no longer be able to skip this step. For businesses, this offers a systematic opportunity to help shape the specifications of future contracts and to gain visibility with potential clients at an early stage.

Quality Over Price: A New Standard for Awarding Contracts

One of the most discussed aspects of the proposal is the thorough overhaul of the contract award system. Awarding contracts based on the lowest price—long the dominant approach among many contracting authorities—will become the exception under the new framework. Those who still wish to award contracts based on price will have to explicitly justify this in the notice.

The new standard is the best value for money, with a minimum quality weighting of 30 percent. For labor-intensive services, that minimum threshold rises to 50 percent. This requirement compels contracting authorities to consider what they truly wish to procure and why—and offers businesses that excel in quality more opportunity to distinguish themselves than by price alone.

This shift is deliberate. The European Commission no longer views public procurement as a neutral mechanism for selecting the lowest bidder, but as a strategic policy tool through which societal goals—sustainability, innovation, and strategic autonomy—can be actively pursued.

New Procedures: From Rigid Steps to Room for Negotiation

Public procurement law has traditionally had a reputation for strict procedures with little flexibility. The proposal breaks with that tradition. In addition to the familiar forms of procurement, several new procedures will be introduced.

The Open Negotiated Procedure is the most notable addition. Any interested business can respond directly to a request for proposals and submit an initial bid. The procuring entity then conducts rounds of negotiations and can gradually reduce the number of participants. Negotiation is thus no longer an exception—it becomes a regular part of the procurement process.

For simple, standardized products and services, a simplified procedure without selection criteria will be introduced. This reduces the administrative burden for both contracting authorities and bidders in routine procurement.

Those working on innovative solutions will soon be able to take advantage of the Innovation Challenge. Instead of traditional award criteria, the contracting authority focuses on a specific problem and challenges the market to come up with the best solution. This opens doors for startups and innovative small and medium-sized enterprises (SMEs) that often lose out to larger, established players in traditional procurement processes.

Finally, a simplified direct award remains possible in urgent situations—such as a crisis or a serious cross-border threat—but this remains explicitly an exceptional circumstance.

Framework Agreements and Contract Amendments Under a Stricter Regime

Framework agreements are a commonly used tool in day-to-day procurement practice. The proposal shortens the maximum durations: for a framework agreement with a single contractor, the maximum term is now three years; for multiple contractors, it is five years. For sectors accustomed to longer framework agreements—such as the utilities sector—this is a change that affects the planning horizon.

Another new development is that the requirement to include a maximum value in the framework agreement is now explicitly codified in the law. Until now, this could only be inferred from rulings by the European Court of Justice, which led to uncertainty in practice.

Changes to existing contracts are also subject to stricter regulations. Minor adjustments remain possible, but as a change becomes more substantial, the transparency requirements increase. Above a certain threshold, a change must be disclosed in advance; in the case of major adjustments, a completely new procurement procedure may be required. Furthermore, for concessions, changes must be published within 30 days of their implementation, provided the value does not exceed half of the initial estimate.

Sustainable Procurement: From Policy Goal to Legal Standard

Sustainability has been a topic in the world of procurement for years, but its implementation has largely been voluntary until now. The proposal puts an end to that. A separate chapter is devoted to green procurement, with a particular emphasis on circularity—repair, reuse, and refurbishment—and energy efficiency as the standard starting point for procurement decisions.

Mandatory, harmonized environmental frameworks will be introduced for a number of specific product categories. The bar has been deliberately set higher than the statutory minimum requirements: meeting the basic standards is considered the absolute minimum, not proof of sustainable procurement. Organizations that do not yet have a strategic policy in place would be wise to start developing an approach that goes beyond mere compliance.

European Preference: Strategic Procurement from a Geopolitical Perspective

The proposal introduces an entirely new instrument: the European preference. Contracting authorities will be able to limit participation in a procurement procedure to European suppliers and companies from countries with which the EU has concluded a trade agreement. In addition, they may grant a price advantage to products and services of European origin.

This is initially a decision made by the contracting authority itself. However, the European Commission reserves the right to make this European preference mandatory for specific sectors or specific third countries through delegated acts. The rationale is geopolitical: in an era of growing economic interdependencies and international tensions, the EU aims to strengthen its strategic autonomy by also using procurement policy as a tool.

For European businesses, this instrument potentially offers a competitive advantage in the domestic market. For contracting authorities, it requires a conscious choice and justification within their procurement strategy.

What does this mean for your organization?

It is important to emphasize that this proposal from the European Commission is not yet definitive law. The legislative process with the Council of the EU and the European Parliament has yet to be completed, and on certain points—including the exact scope of European preference and the details of the sustainability framework—the final text is still evolving. The proposal is scheduled to take effect in 2028.

But that should not be a reason to wait. The direction is clear: procurement will become more transparent, more sustainable, more digital, and more strategic. Businesses that invest now in their quality profile, sustainability approach, and digital skills will soon be in a stronger position than those who wait until the regulation takes effect.

Moreover, the reform affects the entire procurement process: from the earliest market exploration to the execution and termination of a contract. A review of your current procurement strategy is therefore no luxury.

Would you like to know specifically what these developments mean for your organization, your current contracts, or future bids? The specialists at Fruytier Lawyers in Business closely follow the European legislative process and are happy to advise you—both on strategic issues and in day-to-day procurement practice.