MEPs call for procurement law reform to boost social benefits, help SMEs

MEPs this week called for reforms to public procurement rules to make it easier for small firms to bid for contracts.

In a non-legislative resolution, they also called for authorities to be able to award contracts to the most innovative bidder or to those offering the greatest environmental or social benefits, not just to the lowest bidder.

The resolution proposes that the "lowest price" criterion should no longer be the determining factor in awarding contracts. Instead it should be replaced by the "most advantageous tender in terms of economic, social and environmental benefits, taking into account the entire life-cycle costs of the good, service or work".

The MEPs cited a number of cases where this new wording would be particularly appropriate, such as for food to hospitals, care facilities for the elderly, schools and kindergartens.

The resolution puts forward a number of proposals, including for:

• an EU-wide "electronic procurement passport" proving that the holder complies with EU rules on public procurement
• measures to remove administrative barriers. These could include the use of self-declarations of compliance and requesting original documents only from the shortlisted candidates or the successful tenderer
• greater division of public contracts into lots to give SMEs a better chance of success when they bid
• consideration of "whether further rules on the award of subcontracts are needed, for example on the establishment of a chain of responsibility, specifically to avoid SME subcontractors being subject to conditions worse than those applicable to the main contractor"
• reassessment of the appropriate level of thresholds for supply and services contracts. If necessary, these should be raised.

The MEPs’ resolution comes just weeks before the European Commission is expected to table its own reform proposals.

The resolution was drafted by Greens MEP Heidi Rühle. She said: “In this deep crisis we need clear, simple rules. Only in this way can public authorities give a fillip to innovation and growth."

Philip Hoult