The Institutionalised and Non-Institutionalised Exemptions from EU Public Procurement Law: Towards a More Coherent Approach?

Abstract

From a EU public procurement law perspective, contracting authorities have a discretionary power to decide upon who is allowed and best suited to provide public services to the public. When public authorities deem the in-house performance of a service to be the most suitable, the Court of Justice of the EU has allowed these authorities to rely on the institutionalised and non-institutionalised exemptions, which exempt a possible duty to contract out a public contract. The first part of this contribution discusses the recent codification of these exemptions in Article 12 Directive 2014/24/EU on public procurement. It concludes that this codification creates some legal certainty, but it mostly expands the scope of these exemptions from public procurement law. The second part of this contribution proposes a more coherent approach for these exemptions by discussing the challenges of regulating and enforcing the pre-procurement phase (the make-or-buy decision) in which a public authority decides to favour the internal or external performance of a service. It concludes by providing legal perspectives to regulate and enforce this decision-making phase.