This piece examines how the European Commission’s proposed Public Procurement Act could change the way suppliers compete for public contracts.
A single regulation would replace three directives
The European Commission’s proposal would replace the three public procurement directives now in force with one regulation directly applicable across all member states. The change is presented as more than a procedural update: public purchasing would be used to support European competitiveness, innovation, sustainability, economic security and resilient supply chains, alongside transparency, competition and value for public money. The proposal is not yet final, and its contents may change during the legislative process. For suppliers, the central issue is therefore how the new policy aims would be translated into tender requirements and award decisions.
Origin and supply-chain risk could enter the competition
Under the proposed model, contracting authorities would have more scope to assess the origin of goods, services and suppliers, and in some cases to restrict participation by suppliers from third countries or the products they offer. Procurement could also examine exposure linked to critical infrastructure, sensitive information, cyber security and strategic dependencies. For a technology supplier, relevant questions might include where data is stored, who controls the provider and whether a service would continue during disruption. In energy and infrastructure, similar scrutiny could concern equipment, raw materials and critical components.
The lowest price would not be the whole award test
The Commission proposes that contracts would generally be awarded on the basis of the best price-quality ratio, with quality criteria given a clearer role. That could make a price-only strategy less effective, while giving businesses more room to demonstrate quality, innovation, sustainability, security and reliable supply chains. In procurement terms, the award decision would compare the value described in the tender rather than treating the cheapest compliant offer as the practical centre of competition. Laura Ziferman, a partner at WALLESS, says businesses may need to reassess which investments help them win public-sector customers.
Simpler access must be balanced against strategic safeguards
The proposal also promises lower administrative burdens and broader access, including smaller qualification barriers, tougher treatment of excessive turnover and prior public-sector experience requirements, greater digitalisation and more procedural flexibility. Those measures could matter to new market entrants and technology businesses that find public procurement too complex or costly relative to a potential contract. The practical test will be whether these changes make competition easier without replacing one set of obstacles with another. The proposal indicates that the special defence and security procurement regime would remain outside the regulation’s scope.
IN NUMBERS
For Lithuania’s public procurement market, worth nearly €10 billion according to the source article, the proposed shift could affect both how the state buys and which suppliers it considers reliable, competitive and strategically suitable. Businesses can assess their exposure by reviewing price dependence, the origin of products and critical components, supply-chain resilience, and the evidence supporting quality, sustainability, security and innovation. No immediate rewrite of procurement strategies is required: the proposal remains subject to the legislative process, where the balance between wider competition and European strategic interests will be settled.
Reported from vz.lt, 2026-09-10. The Tender Wire is published by Otnox.
