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Summaries of EU Legislation

Public procurement

SUMMARY OF:

Directive 2014/24/EU on public procurement

WHAT IS THE AIM OF THE DIRECTIVE?

It establishes purchasing procedures for public buyers.

KEY POINTS

The legislation specifies that when national authorities use public procurement to invite tenders to provide works, supplies or services, they must treat all applicants equally and not discriminate between them. They must also be transparent in their dealings.

Thresholds

The rules applicable to public contracts must be followed when the sums involved are above the following thresholds:

  • €5,538,000 for public works (from );
  • €143,000 for central government contracts (from );
  • €221,000 for local and regional government contracts (from );
  • €750,000 for social and other specific service contracts.

The European Commission revises these thresholds every 2 years in accordance with the European Union’s (EU) international obligations.

Criteria

The contract is awarded to the most economically advantageous tender identified on the basis of the lowest price or the best price–quality ratio. The quality criterion may include the overall cost effectiveness, technical quality, environmental and social aspects, trading and delivery conditions, etc.

Innovation and small companies

The legislation introduces a new procedure to promote the development of innovative products, services or works. To facilitate the participation of small companies, the new rules encourage public authorities to divide up large contracts into individual lots.

Safeguards

EU Member States have to ensure that contractors and their subcontractors comply with all applicable EU and national environmental, social and labour law, collective agreements and any relevant international obligations.

The legislation provides rules for handling abnormally low offers, for reasons including to prevent workers’ rights being abused.

Exemptions

Nothing in the legislation requires Member State governments to contract out services they wish to provide themselves, nor does it affect national social security legislation.

Contracts relating to the water, energy, transport and postal services sectors are excluded from the directive. Instead, they are regulated by Directive 2014/25/EU (see summary).

In addition, some sectors such as electronic communications and research and development can be excluded under certain conditions.

FROM WHEN DO THE RULES APPLY?

The directive had to be transposed into national law by .

BACKGROUND

For further information, see:

MAIN DOCUMENT

Directive 2014/24/EU of the European Parliament and of the Council of on public procurement and repealing Directive 2004/18/EC (OJ L 94, , pp. 65–242).

Successive amendments to Directive 2014/24/EU have been incorporated into the original text. This consolidated version is of documentary value only.

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