1. Introduction

DISCLAIMER

This practical guide on contract procedures for European Union external action (PRAG) provides contracting authorities, on the one hand, and tenderers, candidates, applicants and contractors, on the other hand, with practical assistance in preparing and implementing procurement and grant contracts in the field of external action [1].

It does not claim to cover every single matter that may arise with public procurement and grant procedures. It is only a general guide.

Please refer to the glossary of terms annexed to this practical guide (Annex a1).

This practical guide provides users with the comprehensive information necessary to undertake procurement (services, works and supplies contracts) or grant award procedures from the first steps to the award, signature and implementation of contracts. The annexes cover both the award phase and the implementation of contracts.

It outlines the award procedures to be used in direct management and in indirect management with partner countries.

Although this practical guide provides explanations and information strictly in compliance with the rules and regulations in force, it is not legally binding [2]. The applicable legislation and any clarification provided by the Court of Justice of the European Union take precedence.

This practical guide has been revised in the last years to gradually implement the European Commission programme to have a single electronic data interchange area for all participants or recipients involved in EU grant and procurement actions.

In the area of procurement, the e-procurement process started in 2020 with the management of specific contracts under framework contracts [3], followed by the new system for publication of notices in August 2020 [4], and the introduction of e-Submission for certain type of award procedures in 2021 [5]. It is reminded that practical information on the functionalities of eSubmission are available on the dedicated Relex Wiki webpage [6].

This edition of the PRAG introduces the modifications stemming from the entry into force in 2024 of the Financial Regulation [7] both in the area of procurement and grants.

In addition, in the area of procurement, it includes:

• changes related to modifications of the Belgian civil code (for example, grounds for suspension of payments or of the contract), new arrangements to process VAT exemption for local purchases in Belgium, developments in the field of abnormally low tenders;

• changes related to digitalisation: information on the F&T Portal Participant Register, on the Participant Identification Code, and on eSubmission functionalities. With a view to their automation with eProcurement, contract models now include main conditions and new corporate letters to successful and unsuccessful participants will be used. Due to the different pace for releasing electronic management modules, it is however possible that parts of this edition will be completed in the future by specific elements in the electronic management guidance available on the dedicated Relex Wiki webpage;

• precisions regarding contract modifications and their limits;

• precisions regarding the negotiated procedure;

• precisions regarding the evaluation report and the verifications to be done with the presumed successful tenderer by the evaluation committee;

• precisions regarding framework contracts and the request for specific contracts;

• precisions regarding professional conflicting interest;

• new provisions in the procurement documents and in the general conditions for service contracts to strengthen the conditions required for replacement of key experts and to clarify the application of related liquidated damages;

• realignment of the period of validity of tenders;

• replacement of CVs of key experts with an expert's profile to facilitate the examination of the evaluation criteria for key experts. This expert's profile is meant to only indicate the elements relevant to the requirements of the terms of reference, which are expressed in the evaluation grid in the form of award criteria;

• revision of the selection criteria to promote the participation of SMEs;

• precision on the delivery mode of the expert’s assignment in relation to per diems;

• the application of the Foreign Subsidies Regulation;

Secondly, In the area of grants, the following changes are made:

• introduction of financing not linked to costs in grant contract templates and guidelines for calls for proposals;

• publication of calls for proposals in the Funding & Tenders Portal;

• simplification of the evaluation process;

• clarification of reporting obligations under the grant contract.

In addition to these modifications in terms of content, the practical guide has been restructured reinforcing basic rules in Chapter 2, and focusing the other chapters more on the specific elements that distinguish each type of procedure.

1.1. Scope of the PRAG

This practical guide explains procurement and grant award procedures applying to European Union external actions financed by the European Union.

Award procedures funded under previous Multiannual Financial Framework (MFF) 2014-2020 and European Development Funds (EDF) will co-exist with award procedures funded under the Multiannual Financial Framework (MFF) 2021-2027 as commitments made under the previous MFF and EDFs will still be implemented in the next years. This co-existence is reflected in the practical guide. It is important to be aware of the relevant source of funding as different legal requirements can apply.

The financing of the EU's external action under MFF 2021-2027 is governed by the following legal framework:

• Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast), PE/99/2023/REV/1, OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj;

• Council Regulation (EU, Euratom) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 [9];

• The external financing instruments: NDICI-Global Europe; EINSC; DOAG; IPA III and the Ukraine Facility.

Under MFF 2021-2027, the practical guide is used by the Commission services responsible for the management of projects and programmes financed under the referred external financing instruments.

This concerns:

• Directorate-General for International Partnerships (DG INTPA) for the NDICI-Global Europe geographic programmes (all areas except Neighbourhood), NDICI-Global Europe thematic programmes (Civil Society Organisations, Global Challenges, Human Rights and Democracy), NDICI-Global Europe rapid response actions (resilience component), European Instrument for International Nuclear Safety Cooperation (INSC), the Council decision on the Association of the Overseas Countries and Territories, including Greenland.

• Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR) for the implementation of the Instrument for Pre-accession Assistance (IPA III), NDICI-Global Europe geographic programmes (Neighbourhood) and NDICI-Global Europe – rapid response actions (resilience component), and the Ukraine Facility.

• Service for Foreign Policy Instruments (FPI) for the NDICI-Global Europe thematic programmes (Peace, Stability and Conflict Prevention; Electoral Observation Missions under Human Rights and Democracy), NDICI-Global Europe rapid response actions (all components except resilience) [10]. In addition, this practical guide applies to contracts awarded by FPI in direct management for the implementation of assistance measures funded under the European Peace Facility, unless provided otherwise in the relevant regulatory framework.

Please refer to Section 1.1 of PRAG 2021 for a description of the legal framework applicable to the financing of the EU’s external action under MFF 2014-2020 and 11^th EDF.

Under MFF 2014-2020 and 11^th EDF, the practical guide is used by the European Commission services responsible for the management of projects and programmes financed under the external financing instruments and the EDF in the context of the ACP-EU Partnership Agreement.

This concerns primarily:

• Directorate-General for International Partnerships (DG INTPA) for the EDF, the Development Cooperation Instrument (DCI) [11], the European Instrument for Democracy and Human Rights (EIDHR) [12], the Nuclear Safety Co-operation Instrument (NSCI) [13], the Instrument contributing to Stability and Peace (IcSP) [14], the Overseas Countries and Territories (OCTs) [15] and the Instrument for Greenland (IfG) [16];

• Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR) for the implementation of the Instrument for Pre-accession Assistance (IPA II) [17] and the European Neighbourhood Instrument (ENI) [18];

• Service for Foreign Policy Instruments (FPI) for the IcSP, the Partnership Instrument (PI) [19] and the election observation missions under the EIDHR.

1.2. What the practical guide does not cover

This practical guide does not apply:

• to contracts for which the European Commission acts as contracting authority on its own account or grant contracts in other policy areas. These are covered by separate guides (the Vade-mecum on public procurement in the Commission and the Vade-mecum on grant management or Annotated Grant Agreement) drafted by the Directorate-General for Budget (DG BUDG). The procurement rules for external action continue to contain differences as compared to the procurement rules in internal policies. More specifically, external action procurement rules apply when the European Commission procures for the account of and on behalf of (‘for the exclusive benefit of’) partner countries or for the mixed interest of the Commission and the partner country;

• to humanitarian crisis management aid, civil protection operations and humanitarian aid operations carried out by the DG ECHO;

• to procurement carried out in indirect management by entities whose procedures have been subject to a positive pillar assessment (please refer to Section 2.2.2.);

• to grant beneficiaries for which Annex IV of the standard grant contract applies (see Annex e3h3);

• to direct labour operations, which are governed by a separate guide [20].