Horizon Europe Pre-commercial procurement (PCP) and Public procurement of innovative solutions (PPI) actions (Partly verified)
- Kind
- Grant (the beneficiaries carry out and own the work)
- What it is for
- PCP is procurement of R&D services with risk-benefit sharing under market conditions and competitive development in phases, kept separate from deploying commercial volumes of end-products. (Regulation (EU) 2021/695 establishing Horizon Europe, laying down its rules for participation and dissemination, Article 2, point (7))
- PPI is procurement where contracting authorities act as launch customer for innovative goods or services not yet available at large commercial scale, and it may include conformity testing. (Regulation (EU) 2021/695 establishing Horizon Europe, laying down its rules for participation and dissemination, Article 2, point (8))
- PCP actions help a transnational buyers' group procure R&D, validation and possibly first deployment of new solutions in areas of public interest; PPI actions help such a group deploy innovative solutions early by pooling demand and sharing early-adopter risk. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex B, Eligible activities, p. 15)
- Designed by
- PCP/PPI topics are set in Commission work programmes adopted by implementing act. (Council Decision (EU) 2021/764 establishing the Specific Programme implementing Horizon Europe, Article 13(2)(b))
- Implemented by
- The procurement is carried out by the beneficiaries (a lead procurer acting for the buyers' group), not by the Commission; the Commission or funding body may also run PCP/PPI itself or jointly with Member State contracting authorities. (Regulation (EU) 2021/695 establishing Horizon Europe, laying down its rules for participation and dissemination, Article 26(1) and Article 44(2))
- For a group PCP, a lead procurer awards the R&D service contracts on behalf of the buyers' group after one joint call for tender and one joint evaluation. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, pp. 37-38)
- Who can apply or take part
- PCP and PPI actions need at least three independent beneficiaries, of which at least two are public procurers in different Member States or associated countries, at least one of them in a Member State. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex B, Consortium composition, p. 13)
- Public procurers are contracting authorities or entities under Directives 2014/24/EU, 2014/25/EU and 2009/81/EC; other entities such as end-users without a conflict of interest may join only for additional activities. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex B footnote 35, p. 13; General Annex H, p. 37)
- Each procurer in a PCP buyers' group must contribute financially to the joint PCP budget. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 38)
- Funding rate or co-funding
- Maximum funding rates: pre-commercial procurement action 100%; public procurement of innovative solutions action 50%. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex G, p. 31)
- Typical size
- Not stated in the sources read.
- Maturity (TRL)
- PCP covers solution design, prototyping and original development up to testing of a limited volume of test-series products; PPI concerns innovative solutions already partly demonstrated at small scale and excludes procurement of R&D. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, pp. 40-42)
- Who owns the results
- In PCP the contractor generating results owns at least the IPR; the contracting authorities get at least royalty-free access for their own use and the right to require non-exclusive licences to third parties on fair and reasonable terms, without sub-licensing. (Regulation (EU) 2021/695 establishing Horizon Europe, laying down its rules for participation and dissemination, Article 26(3))
- A call-back clause lets procurers require transfer of ownership if providers fail to exploit results commercially within a set period, or use them against the public interest including security interests. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 41)
- Time to grant or contract
- The PCP call for tenders must stay open at least 60 days; the Commission must be told at least 5 days before the prior information notice for the open market consultation and 30 days before publication of the PCP contract notice. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 40)
- The grant to the buyers' group follows the general Horizon Europe maxima of 5 months to inform and 8 months to sign. (Regulation (EU) 2021/695 establishing Horizon Europe, laying down its rules for participation and dissemination, Article 31(1))
- Legal basis
- Regulation (EU) 2021/695, Articles 2(7), 2(8), 2(37), 2(38), 26 and 44(2); General Annex H of the 2026-2027 work programme. (Regulation (EU) 2021/695 establishing Horizon Europe, laying down its rules for participation and dissemination, Articles 2(7)-(8), 2(37)-(38), 26, 44(2))
- Work programme, committee or other step needed
- Requires a topic in an adopted work programme; specific provisions on ownership and access rights for PCP/PPI actions are set in the grant agreement. (Regulation (EU) 2021/695 establishing Horizon Europe, laying down its rules for participation and dissemination, Article 42(1)-(2))
- Conditions and limits
- PCP contracts use one framework agreement covering all phases, start with at least three R&D providers, and require providers to locate most R&D activities in Member States or associated countries. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, pp. 40-41)
- Where the topic restricts participation or control for security reasons, the PCP/PPI tender must apply the same restriction to bidders. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 39)
- PCP terms (including IPR allocation) are published in the tender so prices reflect market conditions and State aid is ruled out. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 42)
- PCP procedures may be simplified or accelerated and may limit place of performance to Member States and associated countries. (Regulation (EU) 2021/695 establishing Horizon Europe, laying down its rules for participation and dissemination, Article 26(2))
- Quantum examples
- Not stated in the sources read.
- Who to contact
- European Commission (granting DG/agency of the topic); National Contact Points
- Next steps
- Form a buyers group of public procurers from several countries with a shared need.
- Ask for a PCP or PPI topic in the next work programme; none is open in the current quantum topics.
- Run an open market consultation before the call for tenders.
- Verification
- Partly verified. Rules were read in full in Regulation Articles 2, 26, 42 and 44 and General Annexes B, G and H. The 2026-2027 Cluster 4 work programme contains no PCP or PPI topic and no quantum PCP/PPI was found, so quantum_examples and typical_size are empty.