Pre-commercial procurement (PCP) (Partly verified)
- Kind
- Procurement (a public buyer contracts and pays for a result)
- What it is for
- PCP is an approach to procuring R&D services, other than exclusive development, that involves risk-benefit sharing at market conditions, competitive development in phases, and separation of R&D from commercial deployment. (Communication: Pre-commercial Procurement: Driving innovation to ensure sustainable high quality public services in Europe, COM(2007) 799 final, Sections 1 and 5)
- The guidance describes PCP as procuring R&D services at advantageous conditions from several operators, where the buyer shares the benefits with suppliers under market conditions; it applies the R&D services exemption of the directives. (Commission Notice: Guidance on Innovation Procurement, C(2021) 4320 final, 18.6.2021, Section 4.2.3.2, pp. 55-56)
- The State aid framework defines PCP as procurement of R&D services where the authority shares results and benefits with providers under market conditions, of limited duration, possibly including prototypes or a limited test series, excluding commercial volumes. (Framework for State aid for research and development and innovation (2022/C 414/01), Point 16(bb))
- Designed by
- Horizon Europe PCP actions are funded through work programme topics; the topic HORIZON-EIE-2027-01-CONNECT-02 funds joint PCPs by consortia of public buyers and does not fund developers directly. (CORDIS topic HORIZON-EIE-2027-01-CONNECT-02: Reinforcing synergies between experimentation spaces and innovation procurement, Topic description)
- Implemented by
- PCP must be run by public procurers (possibly with private/NGO procurers providing similar public-interest services) or by entities they mandate (e.g. central purchasing bodies); in a buyers' group a lead procurer awards the R&D contracts on behalf of the group. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, pp. 37-38)
- Who can apply or take part
- Horizon Europe PCP actions need at least three independent beneficiaries, including at least two public procurers established in different Member States or Associated Countries, at least one in a Member State. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex B, Eligibility, p. 13)
- Suppliers respond to the PCP call for tenders; providers cannot be beneficiaries in the action, and must locate most R&D activities in Member States or Associated Countries. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 41)
- Funding rate or co-funding
- Maximum Horizon Europe funding rate for a pre-commercial procurement action is 100%. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex G, p. 31)
- Typical size
- The guidance cites the EU blockchain PCP, which bought R&D from 7 suppliers in the design phase, 4 in prototyping and 3 in product development and testing. (Commission Notice: Guidance on Innovation Procurement, C(2021) 4320 final, 18.6.2021, Section 4.1.7 example, p. 51)
- Maturity (TRL)
- Not stated in the sources read.
- Who owns the results
- Providers generating results own the IPR; procurers get at least royalty-free access rights for their own use, the right to grant or require non-exclusive licences to third parties on fair and reasonable terms, and a call-back right if results are not exploited or are used against the public interest. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 41)
- The buyer leaves new IPR with suppliers but keeps the right to use the R&D results and to (require suppliers to) license to third parties on fair and reasonable market terms. (Commission Notice: Guidance on Innovation Procurement, C(2021) 4320 final, 18.6.2021, Section 4.2.3.2, p. 56)
- PCP contracts must include financial compensation at market conditions, compared with the exclusive development price, for leaving IPR with providers. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 42)
- Time to grant or contract
- Horizon Europe PCP: the open market consultation is announced by a PIN at least 45 days before the first meeting; the Commission is informed 5 days before the PIN and 30 days before the contract notice; the PCP call for tenders stays open at least 60 days. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 40 and footnote 54)
- Legal basis
- Directive 2014/24/EU applies to R&D service contracts only for listed CPV codes when benefits accrue exclusively to the authority and it pays fully; PCP uses the exemption where benefits are shared. (Directive 2014/24/EU on public procurement (as published in OJ L 94, 28.3.2014), Article 14)
- Horizon Europe PCP rules cite the R&D exemption (Article 14 of Directive 2014/24/EU, Article 32 of Directive 2014/25/EU, Article 13(f)(j) of Directive 2009/81/EC), Treaty principles and section 2.3 of the R&D&I State aid framework. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, p. 39 and footnotes 50-52)
- For EU institutions, FR Annex I point 12.1(e) allows the competitive procedure with negotiation or competitive dialogue for R&D services outside the listed CPV codes unless benefits accrue exclusively to the authority or it pays in full; the FR text read contains no PCP-specific article. (Regulation (EU, Euratom) 2024/2509 on the financial rules applicable to the general budget of the Union (recast Financial Regulation), Annex I, point 12.1(e))
- Work programme, committee or other step needed
- Horizon Europe PCP projects need a preparation stage (PIN for open market consultation, consultation report, tender documents based on the HE PCP/PPI model, joint procurement agreement) and an execution stage. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, pp. 38-39)
- Conditions and limits
- Phases: solution design, prototyping, original development and validation/testing of first products, with fewer competing providers after each phase; at least three providers start; fast-track options allow merging phases 2 and 3, or at least two phase-1 contracts if fewer capable tenderers exist. (Horizon Europe Work Programme 2026-2027, Part 15: General Annexes, General Annex H, pp. 40-41)
- PCP must not include commercial volumes; it may include first products or a test series, provided the value of services exceeds that of products. (Commission Notice: Guidance on Innovation Procurement, C(2021) 4320 final, 18.6.2021, Section 4.2.3.2, p. 56)
- No State aid is presumed for PCP where the price reflects market value of benefits and risks, notably with an open, transparent, non-discriminatory selection, published contract terms including IPR, no preference in later commercial supply, and either wide dissemination with IPR to the buyer or free buyer access plus market-terms third-party access. (Framework for State aid for research and development and innovation (2022/C 414/01), Section 2.3, points 32-35)
- Where R&D services are procured separately with IPR left to suppliers, third-country operators have no secured access under international agreements, and place-of-performance conditions may be applied. (Commission Notice: Guidance on Innovation Procurement, C(2021) 4320 final, 18.6.2021, Section 4.2.3.2, p. 57)
- Quantum examples
- Not stated in the sources read.
- Who to contact
- European Commission, DG CONNECT innovation procurement (Horizon Europe PCP topics); national procurers for own PCPs
- Next steps
- Describe the unmet public need, not the solution, and run an open market consultation.
- Plan competing suppliers through the solution design, prototype and test phases; suppliers keep the IPR, the buyer gets use rights.
- Several public buyers can ask for EU co-funding through a Horizon Europe PCP action.
- Verification
- Partly verified. COM(2007) 799, the 2021 Guidance (sections 4.2.3, 5), the R&D&I framework sections 1.3 and 2.3 and Horizon Europe General Annexes B, G and H were read. The Commission PCP policy page returned HTTP 403. CORDIS searches (projects and topics mentioning quantum with 'pre-commercial procurement') found no quantum PCP project or topic, so no quantum example is given.