What is a pre-commercial procurement (PCP) process?

Pre-Commercial Procurement (hereafter PCP) essentially refers to the purchase of research and development (R&D) services by the public sector. It is triggered by procurers identifying the need to solve a socio-economic problem or challenge of public interest for which there is no solution available on the market yet. Accordingly, PCP is not concerned with the procurement of existing products or services on the market but with the R&D phase, which involves solution exploration and design, prototyping, up to the original development of a limited volume of first products or services.
The PCP instrument enables the commissioning of R&D services, under a staged competitive process, to allow the development of innovative solutions that meet the needs of a Contracting Authority. This approach is based on:
1. Risk-benefit sharing according to market conditions;
2. Competitive development in phases;
3. Separation of the R&D phase from deployment of commercial volumes of end-products.

Category: 
PCP Process