Joint Procurement

Joint procurement is a procurement arrangement in which two or more contracting authorities collaborate to conduct a single procurement procedure, pooling their requirements and purchasing power to achieve better outcomes than each could achieve individually. When the collaborating authorities are from different EU Member States, this is specifically known as cross-border joint procurement, which is explicitly facilitated by Article 39 of Directive 2014/24/EU. Joint procurement enables contracting authorities to achieve economies of scale, share procurement expertise, standardize specifications across organizations, and reduce the total administrative burden of conducting separate procedures for similar requirements.

How It Works

Joint procurement can take several forms, ranging from informal cooperation to permanent institutional arrangements. The key element in all forms is that multiple contracting authorities combine their requirements into a single procurement procedure.

In the simplest form, two or more contracting authorities agree to conduct a single procurement for a shared requirement. One authority typically takes the lead role, managing the procurement process on behalf of all participants. The participating authorities agree on common specifications, a shared procurement strategy, and the allocation of responsibilities for different stages of the process. The lead authority publishes the contract notice, manages communications with tenderers, chairs evaluation panels, and coordinates the award decision.

For more structured collaboration, authorities may establish a central purchasing body to manage joint procurement on an ongoing basis. The CPB conducts procurement procedures and establishes framework agreements from which participating authorities can call off as needed. This model provides a permanent institutional framework for joint procurement and is the most common approach for recurring commodity purchases.

Cross-border joint procurement between authorities in different Member States presents additional complexity. Article 39 of Directive 2014/24/EU provides the legal framework for such arrangements. The participating authorities must agree on which national law will govern the procurement procedure. Options include the law of the Member State where the joint procedure is being managed, the law of the Member State where the works will be performed or services delivered, or the law applicable to any permanent joint entity established for the purpose.

The practical process for cross-border joint procurement typically unfolds as follows. First, contracting authorities from different countries identify a shared procurement need that would benefit from joint action. Second, they negotiate and sign a cooperation agreement specifying the scope, governance structure, applicable law, language of the procedure, financial arrangements, and dispute resolution mechanisms. Third, the lead authority conducts the procurement procedure in accordance with the agreed national law, publishing the notice in TED and managing the full procurement cycle. Fourth, the resulting contract or framework agreement is structured to serve all participating authorities, either through a single contract with delivery to multiple locations or through separate contracts awarded simultaneously.

Joint procurement has gained significant political momentum following the COVID-19 pandemic, during which the European Commission facilitated joint procurement of vaccines, personal protective equipment, and medical devices on behalf of EU Member States. The Joint Procurement Agreement signed in 2014 for medical countermeasures demonstrated that cross-border collaboration could deliver rapid results at scale when political will and institutional frameworks were aligned.

The European Commission has actively promoted joint procurement through its public procurement strategy, highlighting it as a mechanism for achieving better value for money, accessing markets that may be difficult for small authorities to reach independently, and fostering cross-border competition in the single market.

Legal Framework

Article 39 of Directive 2014/24/EU is the primary legal provision governing cross-border joint procurement. It establishes that contracting authorities from different Member States may jointly award public contracts by using one of several methods.

Article 39(1) provides that contracting authorities from different Member States may act jointly in the award of public contracts by using any of the means provided for in the Directive. This includes conducting joint procurement procedures, using CPBs from other Member States, and establishing joint entities for ongoing procurement cooperation.

Article 39(2) addresses the determination of applicable law. Where the procurement procedure is conducted in its entirety in the name and on behalf of all contracting authorities, they are jointly responsible for compliance with the Directive. This applies where the procedure is managed by one contracting authority on behalf of all. Where the procedure is not conducted entirely in the name of all authorities, each authority is responsible only for those parts of the procedure it conducts.

Article 39(3) and (4) establish the choice of law rules. The participating authorities must designate the applicable national provisions by agreement. They may establish a joint entity, including European Groupings of Territorial Cooperation (EGTC) or other entities established under EU or international law, which carry out procurement under the law of the Member State where the entity has its registered office.

Article 37 of the Directive provides the framework for using CPBs, including cross-border use. A contracting authority may acquire supplies or services from a CPB located in another Member State, and the procurement is deemed to comply with the Directive if the CPB conducted it in accordance with the rules of its Member State.

At the national level, Member States have additional provisions governing collaborative procurement. In Germany, the Federal Procurement Ordinance (VgV) permits joint procurement between federal, state, and municipal authorities. In France, the Code de la commande publique includes provisions for groupements de commandes, which enable multiple contracting authorities to pool their purchases. The Netherlands facilitates joint procurement through organizations such as PIANOo, which promotes cooperation between contracting authorities.

The EU Treaty principles of free movement and non-discrimination provide the constitutional foundation for cross-border joint procurement. Article 18 TFEU (non-discrimination), Article 49 TFEU (freedom of establishment), and Article 56 TFEU (freedom to provide services) ensure that joint procurement arrangements cannot be used to favour domestic suppliers or restrict cross-border competition.

Practical Examples

Four Nordic hospital groups from Finland, Sweden, Denmark, and Norway (an EEA country covered by the procurement directives through the EEA Agreement) collaborate on a joint procurement for a new hospital information system. The hospitals agree that Finnish procurement law will govern the procedure, with the Finnish hospital group serving as lead authority. A single contract notice is published in TED, and the procurement is conducted in English to accommodate all participants. The resulting framework agreement allows each hospital to call off implementation services tailored to its national requirements while benefiting from shared development costs and volume-based pricing.

A group of 25 municipalities in a metropolitan region jointly procure energy supply contracts. Rather than each municipality conducting its own procurement for electricity and natural gas, they aggregate their demand through a joint procurement managed by the regional central purchasing body. The combined volume of approximately 500 GWh of electricity attracts tier-one energy suppliers that would not bid for individual municipal contracts, resulting in savings of 8 to 12 percent compared to standalone procurement.

During a pandemic preparedness exercise, the European Commission coordinates a joint procurement of rapid diagnostic test kits on behalf of 23 participating Member States. The Commission manages the procurement procedure, publishes the contract notice, evaluates tenders, and negotiates framework agreements with multiple manufacturers. Each participating Member State can then place orders against the framework, with guaranteed access to diagnostic supplies at negotiated prices and delivery terms.

Key Considerations for Suppliers

Suppliers should view joint procurement opportunities as high-value targets, since the aggregated volumes typically exceed those of individual contracting authorities. However, the requirements for serving multiple authorities across different locations (and potentially different countries) demand robust logistics, multilingual support capabilities, and the flexibility to accommodate varying local requirements within a common framework.

Preparing for joint procurement tenders requires understanding the needs of all participating authorities, not just the lead authority. Suppliers should study the procurement documents carefully to identify where common requirements exist and where local variations may affect service delivery, pricing, or technical specifications. Proposals that demonstrate an understanding of the diverse user base and a clear plan for serving multiple stakeholders are more competitive.

For cross-border joint procurement, suppliers must navigate the legal and practical complexities of serving customers in multiple jurisdictions. This includes compliance with different national regulations, tax arrangements (particularly VAT treatment across borders), language requirements for documentation and customer support, and local delivery and installation logistics. Understanding how procurement thresholds apply in cross-border contexts is also critical.

Suppliers should also consider the competitive dynamics of joint procurement. Aggregated volumes attract larger competitors, and the qualification requirements may be more demanding than for individual authority procurements. SMEs should consider forming consortia or partnerships to meet financial standing and reference requirements that they cannot satisfy individually.

Contract management for joint procurement requires dedicated resources. Suppliers serving multiple authorities under a single framework or contract must maintain consistent service quality across all customers while managing the administrative complexity of multiple ordering points, delivery locations, and reporting requirements.

Central Purchasing Body - A specialized entity that may facilitate joint procurement by conducting procedures on behalf of multiple contracting authorities
Contracting Authority - The public sector entities that participate in joint procurement arrangements
Framework Agreement - The most common contractual instrument resulting from joint procurement, allowing individual authorities to call off as needed
Mini-Competition - The competitive mechanism used within multi-supplier frameworks established through joint procurement
Consortium - Suppliers may form consortia to meet the enhanced requirements of joint procurement opportunities

Frequently Asked Questions

Which national law applies to cross-border joint procurement?

Under Article 39 of Directive 2014/24/EU, the participating contracting authorities must agree on which national law governs the procurement procedure. The options include the law of the Member State where the lead authority manages the procurement, the law of the Member State where the works will be performed or services delivered, or the law of the jurisdiction where a permanent joint entity is registered. The choice of law should be specified in the cooperation agreement and communicated to tenderers in the procurement documents.

Is joint procurement mandatory in any circumstances?

Joint procurement is generally voluntary. However, some Member States require certain contracting authorities to use national central purchasing bodies for specified categories of goods and services, which is a form of mandated collaborative procurement. At the EU level, the Joint Procurement Agreement for medical countermeasures provides a voluntary framework for Member States to jointly procure medical supplies. The European Commission has also proposed strengthening obligations for joint procurement in sectors such as defence and energy security.

What are the main barriers to cross-border joint procurement?

The most commonly cited barriers include language differences (procurement documents and contract management require multilingual capability), divergent national procurement laws and administrative traditions, different technical standards and specifications across countries, the complexity of agreeing on governance structures and applicable law, and political sensitivities around cross-border spending. Despite the legal framework provided by Article 39, cross-border joint procurement remains relatively rare in practice, with most joint procurement occurring between authorities within the same Member State.

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