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Public procurements

Public procurement is an instrument that enables a city to purchase work, goods, or services from companies. Public authorities can specify the requirements or criteria to award the company for the public contract: but usually, 55% of procurement procedures use the lowest price as the only award criterion, when in fact, other criteria could be considered such as quality, sustainability, and innovation.

For example, Best price quality ratio (BPQR) can be used to consider not only the price but also the quality of the application. BPQR is a ratio between the price of the subject matter of a public contract and any criteria that are of particular importance for a public buyer. The ratio can be designed in each municipality differently, depending on what it is more important for them (e.g. give more points to specific features such as reducing noise levels, consumption levels, etc. or define the BPQR with indicators such as life-cycle cost, which calculates co2 emissions lifetime costs). 

The EU law sets out minimum harmonised public procurement rules. 

Public Sector Directive

Directive 2004/18/EC, as amended by:

- Directive 2005/51/EC

- Directive 2005/75/EC

- Directive 2006/97/EC

- Directive 2009/81/EC

- Commission Decision 2008/963/EC

- Commission Regulation 213/2008/EC

 - Commission Regulation 1177/2009/EC (on current thresholds)

Utilities Directive

Directive 2004/17/EC, as amended by:

-Directive 2005/51/EC

- Directive 2006/97/EC, - Directive 2009/81/EC,

- Commission Decision 2008/963/EC,

- Commission Regulation213/2008/EC,

- Commission Regulation 1177/2009/EC (on current thresholds)


Nevertheless, there is flexibility in order to design it. The public procurement can be designed in a way that climate neutrality requirements are stated, and therefore, the company applying to the procurement needs to fulfill to be eligible. Examples of public procurements can be found below.

Also the EU prepare Guidance on innovation procurement  and green procurement guidelines.



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