The proposal primarily concerns Directives 2009/43/EC and 2009/81/EC, which are to be amended. Both the European Parliament and the Council of Ministers still need to agree. After that, member states will transpose the directive amendments into national legislation. For the Netherlands, this means an adaptation of the Procurement Act in the field of defense and security (in Dutch).
Key changes
1. Higher thresholds for defence procurement
An increase in the threshold amounts for public procurement. For supplies and services, the threshold increases from €443,000 to €900,000, for works from €5,538,000 to €7,000,000. This reduces the administrative burden in smaller procurement procedures, allowing member states to focus their resources on the most important defense contracts.
2. Expansion of procurement tools
Member states will gain access to all procedures also known from the Procurement Act 2012 (in Dutch) (and Directive 2024/24/EU), such as the open procedure and the Dynamic Acquisition System (DAS), also for defense and security procurement. This expands the number of tools available to procurers for procurement.
3. Innovation is encouraged
The directive must be amended to mobilize innovation capacity and avoid technological dependence. To achieve this, the Commission is introducing the flexible procedure for innovation partnerships, which will better support public procurement of research and development and innovative defense solutions.
4. Simplified procedure for products from research projects
A simplified procedure is added for direct procurement of innovative products resulting from parallel competitive research and development projects. This gives member states faster access to innovative solutions, reduces development risks and leads to higher cost effectiveness. This would also improve industry cooperation and competition.
5. Different procedure for joint procurement
If it were up to the European Commission, joint procurement would temporarily deviate from standard procedures. When at least three member states wish to jointly procure identical or slightly modified defense products, they can use the negotiated procedure without prior publication. This exception is intended to stimulate joint investment in defense equipment and thus interoperability and interchangeability.
6. Support for defense projects beyond the R&D phase
Provision should be made for member states to join research and development-based cooperation programs after the research and development phase. These projects may benefit from the exclusion from research and development-based cooperation programs under the same conditions. The flexibility offered by exclusion aims to support projects beyond the research and development phase, which will also benefit member states joining after the end of that phase.
7. Longer duration of framework agreements
To promote long-term cooperation with industry, the Commission proposes extending the maximum duration of framework agreements from seven to ten years. This extension is more in line with the characteristics and development cycles of the defense sector.
8. Reduced reporting obligation
The European Commission also aims to relieve member states of statistical reporting obligations. Currently, member states must submit an annual statistical summary of supply, service, and works contracts awarded by contracting authorities. Removing this obligation will allow states to focus more directly on implementing their defense policies.
9. More flexibility in modifying ongoing contracts
Finally, the proposal provides more flexibility to modify existing contracts by following the rules on modification of Directive 2014/24/EU. This means that modification is possible when intended changes are already provided for in the original procurement documents and those provisions are clear and unambiguous. In addition, modifications in which the original contractor provides additional services are permitted where: 1) engaging another contractor is not feasible because the additional goods or services must be interoperable with existing systems procured under the original contract, 2) a change of contractor would result in significant costs. In the event of unforeseen circumstances, member states have additional agility.
