Public Procurement
EU
REVIEW OF PUBLIC PROCUREMENT REGIME
Adoption of a proposal by the European Commission for a Public Procurement Act to revise the Public Procurement Directives has been rescheduled to September 2026.
INTERNAL MARKET RESILIENCE
Regulation (EU) 2024/2747 establishing a framework of measures related to an internal market emergency and to resilience of the internal market applies from 29 May 2026. As previously noted, it establishes measures to effectively anticipate, prepare for and respond to the impact of crises on the internal market, including rules on public procurement during the internal market vigilance and emergency modes. Title V provides for public procurement by the Commission on behalf of Member States, as well as joint procurement, during a vigilance mode or emergency mode, and procurement by the Member States during an emergency mode.
CONTRACT MODIFICATIONS
Article 72 of the Public Contracts Directive sets out circumstances in which modifications of contracts “during their term” are permissible. In Case C-820/24, the CJEU ruled that Article 72 means that a public contract cannot be considered to constitute a contract “during its term” where the successful tenderer has performed in full the services which were to be provided under the contract at issue, the contracting authority has definitively received those services and the successful tenderer has submitted the final invoice, even if that contracting authority has not yet paid the price set out therein. This follows the Advocate General’s Opinion, where we looked at the background of the case (see our January 2026 horizon scanner). The judgment indicates that Article 72 cannot be relied on to award additional works to an incumbent contractor after performance is complete, even where payment has not been made.
EXCLUSION OF TENDERERS
Case C-268/25 concerns a request for a preliminary ruling relating to exclusion of tenderers under the Public Contracts Directive and Utilities Directive, under which economic operators that have submitted a tender and have not fulfilled their obligation to pay taxes on time are to be mandatorily excluded from the procurement procedure.
The Court found that the relevant provisions prevent national rules whereby a temporary grouping of undertakings must be excluded from a public procurement procedure because it cannot exclude or substitute one of its members, which fulfilled its (definitively established) obligation to settle its tax debts only after the expiration of the tender submission deadline, merely because it proposed doing so only after it was informed of the existence of the exclusion ground by the contracting authority. This follows the Advocate General’s Opinion (which we considered in our May 2026 horizon scanner).
Ireland
CRITICAL INFRASTRUCTURE
The Critical Infrastructure Act 2026 has been signed into law by the President without changes from the Bill as initiated, which we looked at in our Insights Blog post here: Accelerating Infrastructure: Critical Infrastructure Bill and Circulars.
Minister Chambers also announced further changes to support accelerated infrastructure delivery, namely Circular 24-2026 Benefits Realisation Framework for Infrastructure, and Best Practice KPI Guidance for Regulators of Critical Infrastructure.
DEFENCE OMNIBUS
The EU co-legislators agreed to simplify security and defence procurement, facilitate defence investment and support the defence industry, including through streamlining procurement procedures, introduce faster permitting for defence projects, and simplifying access to the European Defence Fund. Formal adoption of the legislative proposals is anticipated in the coming weeks. The relevant documents are available here: Simplification: Council and Parliament strike deal to boost EU defence industry and readiness.
UK
PROCUREMENT GUIDANCE
The Cabinet Office issued PPN 024: The Public Interest Test and Insourcing Strategy, requiring in-scope organisations to conduct a public interest test from 1 April 2027 (subject to certain exceptions) before procuring services over £1 million. It is intended to ensure that the viability of internal delivery as an alternative to public procurement is explored consistently.
The Cabinet Office also issued PPN 025: Protecting the UK’s national security through public procurement, focusing on supporting critical sectors and securing supply chains.
It should be noted that the UK public procurement regime now differs from that of the EU and Ireland, since enactment of the UK’s Procurement Act 2023 and other legislation. In a reportedly first judgment handed down in the UK under the new regime, for example, the Court considered the new statutory test relevant to lifting an automatic suspension, which recognises more explicitly a public interest in not awarding the contract (where the lawfulness of the proposed award is disputed) until the dispute has been resolved.
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