This article examines how the European Commission’s proposed Public Procurement Act could change competition, supplier eligibility and contract award decisions.
One regulation would replace three directives
On 9 September, the European Commission proposed a Public Procurement Act that would replace the three directives currently governing public procurement with one regulation directly applicable in every EU member state. The proposal is not yet law, and its content may change during the legislative process. Its significance lies in the direction of travel: procurement would remain a mechanism for transparency, equal treatment and responsible use of public money, but would also be used to support European competitiveness, innovation, sustainability, economic security and resilient supply chains. For suppliers, that could alter not only how tenders are run, but also which commercial attributes public buyers are permitted to treat as relevant.
Origin and supply-chain risk move into the competition
The proposed model would give contracting authorities more scope, in certain cases, to assess the origin of goods, services or the supplier itself. Participation by suppliers from third countries, or the products they offer, could be restricted in specified circumstances. Buyers would also pay closer attention to critical infrastructure, sensitive information, cyber security and strategic dependencies. For a technology company, the evaluation could therefore extend beyond price and functionality to where data is stored, who controls the provider and whether the service would continue during disruption. In energy and infrastructure, similar scrutiny could concern equipment, raw materials and critical components. Supply-chain risk would become part of the procurement contest rather than only an internal operating concern.
Best price and quality would generally outweigh lowest price
The Commission proposes that contracts should generally be awarded on the basis of the best price-quality ratio, with a clearer role for quality criteria. That could make a low-price strategy less sufficient on its own. It may also give suppliers more room to demonstrate advantages in quality, innovation, sustainability, security and supply-chain reliability. The practical mechanism is important: a contracting authority would compare offers using criteria set out in the tender, rather than treating purchase price as the sole meaningful differentiator. Businesses competing for public work may therefore need evidence that their products or services create the value claimed. The proposal could reward investment beyond cost, although the final balance will depend on the rules adopted.
Simpler access must be reconciled with strategic safeguards
Alongside stronger strategic conditions, the Commission says it wants to simplify procedures, reduce administrative burdens and open the market to more suppliers. Proposed measures include lower qualification barriers, a stricter approach to excessive turnover and prior public-sector experience requirements, greater digitalisation and more procedural flexibility. These changes could matter to new entrants and technology companies that find public tenders too complex or costly relative to the possible contract. The central practical test will be whether access genuinely becomes easier without replacing old obstacles with new ones. The proposal is especially relevant to energy, infrastructure, transport, IT and cloud technologies. A separate defence and security procurement regime is proposed to remain outside its scope.
IN NUMBERS
For Lithuania’s public procurement market, valued at nearly €10bn, the proposal could change how buyers assess reliable, competitive and strategically suitable suppliers. Laura Ziferman of WALLESS says businesses should examine their dependence on price, the origin of products and critical components, supply-chain resilience, and their ability to substantiate quality, sustainability, security and innovation. No final rules have been adopted, so procurement strategies do not yet need to be rewritten. The outcome will depend on how the legislative process balances wider competition with protection of Europe’s strategic interests.
Reported from vz.lt, 2026-09-10. The Tender Wire is published by Otnox.
