Public Procurement: Single classification system adopted for public contracts, September 2002

On 25 September 2002 the European Parliament voted to adopt a Regulation establishing a Europe-wide classification system for public contracts. The Regulation on the Common Procurement Vocabulary (CPV) will come into force in autumn 2003. It will make the use of the CPV mandatory once two other proposals currently under discussion on simplifying and modernising existing public procurement legislation enter into force. It will also allow for the CPV to be amended and updated (a significant revision of the current Vocabulary will be published as an annex to the Regulation). Using one scheme will also permit contract notices to be automatically translated into the EU's 11 official languages. In addition, the compulsory use of the CPV is also intended to promote the development of electronic public procurement.

The CPV is already used in the Supplement to the 'Official Journal of the European Communities' (OJ S), in which public bodies advertise relevant contracts. Four other schemes are also used in Europe, however, making it difficult for authorities and potential bidders to consistently describe and identify contracts. The CPV will replace these other schemes, namely the CPA (Classification statistique des Produits associée aux Activités), NACE (Nomenclature des Activités économiques dans la Communauté Européenne), CPC Prov. (Central Product Classification) and CN (Combined Nomenclature). An annex to the Regulation will enable users to identify relevant terms in the old and new classifications.

The CPV will also improve comparability with classification schemes used at an international level, under the Government Procurement Agreement.

The new Regulation is part of a series of measures intended to simplify and modernise public procurement legislation in the EU, which have their origins in a Green Paper published by the European Commission in 1996.

The use of a single classification scheme by the public bodies advertising contracts should make it easier for businesses to identify opportunities of interest to them and so benefit from a market worth over €1,000 billion per year.

Internal Market Commissioner, Frits Bolkestein, said: 'This will make a real difference for suppliers. They will now be able to easily find and understand public contract opportunities across the EU, no matter what language the tender notice is originally written in. By increasing competition and efficiency it will also help contracting authorities and the taxpayer to get better value for public money. The new classification will reduce errors, simplify procedures and make it easier to compare markets across the EU.'

Links:

European Commission:
	25.09.00:	Public procurement: Commission welcomes approval new classification system to help companies seeking public contracts [IP/02/1368]
	DG Internal Market: Public procurement: Common Vocabulary
European Parliament:
	Recommendation for second reading on the Council common position with a view to the adoption of a regulation of the European Parliament and of the Council on the Common Procurement Vocabulary (CPV)
European Sources Online:
	10.5.00:	Bulletin: In Focus: Public procurement: Commission proposes to simplify and modernise the legal framework

Eric Davies
KnowEurope Researcher
Compiled: Thursday, 26 September 2002

On 25 September 2002 the European Parliament voted to adopt a Regulation establishing a Europe-wide classification system for public contracts. The Regulation on the Common Procurement Vocabulary (CPV) will come into force in autumn 2003.