What the Proposed EU Public Procurement Act Could Mean for Malta

Why Reform is Necessary

The current procurement framework has improved transparency, competition and market integration across the EU. However, the European Commission has also identified a number of areas where it is no longer working as effectively as it should.

In practice, procurement procedures are often seen as complex and administratively demanding. Decisions can also place too much weight on price, leaving less room to consider quality, innovation and long-term value. Differences between national approaches, together with fragmented digital systems, can further discourage cross-border participation and slow the process down.

The proposed Act is intended to address these issues through a simpler, more flexible and more digital framework, with a clearer focus on practical results.

Key Features of the Proposed Public Procurement Act

A Single European Procurement Framework

A major change would be the replacement of the existing public procurement, utilities and concession directives with one directly applicable Regulation.

Unlike a directive, which must be transposed into national law, a Regulation applies directly in every Member State. The intention is to reduce differences between national procurement systems and create a more consistent set of rules across the EU.

This should give contracting authorities and businesses greater certainty, particularly when operating in more than one European market.

A Shift from Lowest Price to Best Value

The proposed legislation would place greater emphasis on quality and overall value, rather than allowing price to dominate procurement decisions.

Contracts would generally be awarded on the basis of the best price-quality ratio, with quality carrying a minimum weighting in the evaluation. The underlying point is straightforward: good procurement should consider the full life of a project, not simply the lowest upfront cost.

Technical merit, innovation, sustainability, service quality and resilience would therefore play a larger part in contract evaluation.

Greater Flexibility Through Negotiation

The proposal would also allow negotiation to be used in a wider range of procurement procedures.

This is a departure from more rigid procedures and reflects the reality that complex projects, particularly in digital transformation, healthcare technology and infrastructure, often benefit from meaningful dialogue between the authority and the market.

More open engagement with suppliers could help contracting authorities understand what the market can offer and select solutions that better match their actual needs.

Stronger Support for Innovation

Innovation is another central part of the proposed reform.

The new framework is intended to make it easier for public authorities to buy innovative goods and services, giving suppliers more scope to develop new responses to public-sector needs. This would bring procurement more closely into line with the EU’s wider goals on competitiveness, digitalisation and technological development.

European Preference and Strategic Autonomy

The proposal also includes measures intended to strengthen the position of European suppliers.

Contracting authorities may be able to give preference to suppliers established in the EU or in countries covered by EU procurement agreements. This reflects growing concern about supply-chain resilience, strategic autonomy and economic security. 

The aim is not only to support the European economy, but also to reduce dependence in critical areas and protect the continuity of essential supplies and services.

Comprehensive Digitalisation

The Act also points towards a more connected digital procurement system.

Better data collection, interoperable systems, digital business credentials and linked procurement databases could improve transparency and oversight, while reducing paperwork for contracting authorities and bidders.

If implemented well, these changes should make procurement more efficient, strengthen accountability and give policymakers better evidence on how public money is being spent. 

Implications for Malta

For Malta, as a small and open economy, the reform could bring worthwhile opportunities, but it would also create some practical implementation challenges.

Improved Procurement Outcomes

Giving greater weight to quality and value could lead to better results across a range of public-sector projects. 

Major investments in healthcare, education, digital government, infrastructure and environmental sustainability could benefit from evaluations that look beyond cost and give proper weight to technical quality, innovation and performance over time.

In practical terms, this should support better use of public funds and more reliable services for citizens.

Enhanced Opportunities for Maltese Businesses

More consistent rules and processes across the EU could also make cross-border tenders easier for Maltese businesses to pursue.

Small and medium-sized enterprises, in particular, may benefit from simpler administration, clearer information and better digital access to opportunities in other Member States.

This may be especially relevant to firms in information technology, professional services, engineering, consultancy and specialised manufacturing, where Maltese expertise can be offered beyond the domestic market.

Support for High-Quality and Innovative Suppliers

A reduced focus on price alone may favour Maltese businesses that compete on expertise, innovation and service quality rather than scale.

Businesses that can clearly demonstrate technical capability, innovative thinking and credible sustainability practices should be in a stronger position when competing for future public contracts.

Strengthening Malta's Digital Procurement Infrastructure

Meeting the proposed digital requirements is likely to require further investment in procurement technology, data management and institutional capacity.

Although this would involve a significant implementation effort, it is also an opportunity to modernise Malta's procurement systems, improve transparency and strengthen governance across the public sector.

Building Procurement Capacity

The reforms would also demand stronger procurement skills within contracting authorities.

Evaluating quality, handling negotiations and assessing innovative solutions all require judgement and experience. Targeted training for procurement practitioners, evaluators and public administrators will therefore be important if Malta is to gain the full benefit of the new framework.

Conclusion

The proposed EU Public Procurement Act points to a clear change in how procurement is understood across Europe. Rather than treating it mainly as an administrative exercise centred on compliance and cost, the proposal presents procurement as a practical tool for improving quality, encouraging innovation, supporting sustainability and building economic resilience.

For Malta, the reforms offer an opportunity to improve public purchasing, help local businesses compete more effectively and bring procurement systems up to date. Realising those benefits will require investment, adjustment and stronger institutional capacity, particularly during the transition.

If the proposal is adopted broadly in its current form, it could mark the start of a more mature approach to public procurement - one in which quality, innovation and long-term value sit alongside transparency and fair competition.

How Grant Thornton Can Support Organisations

The proposed Act could bring significant operational, strategic and compliance changes for contracting authorities and bidders. Although the final text remains subject to negotiation and approval by the European Parliament and the Council, organisations can already begin considering what the reforms may mean for their procurement approach, governance arrangements and competitive position.

Grant Thornton can assist public and private-sector organisations with practical preparation in the following areas:

• Procurement strategy and transformation advisory;
• Tender design, evaluation frameworks and procurement governance reviews;
• Digital procurement readiness assessments;
• ESG and sustainability integration within procurement processes;
• Supply chain and sourcing strategy reviews;
• Bid management and tender response support;
• Training and capacity-building programmes for procurement professionals; and
• Regulatory impact assessments and implementation planning.

Drawing on expertise in procurement, governance, technology, sustainability and business transformation, Grant Thornton can help organisations understand the proposed changes, identify gaps and plan a proportionate response.

Summary of Key Implications for Malta

What Maltese Businesses Should Start Preparing For