Award criteria
1. Proposals for actions shall be evaluated in the light of the objectives set for the relevant action, the expected results of the relevant action, and the quality and efficiency of its implementation. In particular, that evaluation shall include one or more of the following criteria:
(a)
contribution to competitiveness;
(b)
contribution to resilience and geographical distribution of manufacturing capacities;
(c)
increase in production capacities;
(d)
increase in interoperability;
(e)
increase in interchangeability; and
(f)
contribution to reducing strategic dependencies.
2. In addition to the criteria set out in paragraph 1 of this Article, proposals for common procurement actions referred to in Article 11 shall be evaluated based on the following criteria:
(a)
the number of participating Member States or associated countries;
(b)
the action’s contribution to the adaptation, modernisation and development of the EDTIB throughout the Union; and
(c)
the participation of SMEs and mid-caps.
3. In addition to the criteria set out in paragraph 1 of this Article, proposals for industrial reinforcement actions as referred to in Article 12 shall be evaluated based on the following criteria:
(a)
the reduction of production lead time, and the increase in production capacity in the Union, in reserved capacity and in workforce skilled;
(b)
the contribution to ensuring availability and security of supply throughout the Union in response to identified risks, including in particular high exposure to the risk of materialisation of conventional military threats; and
(c)
the contribution to cross-border defence industrial cooperation throughout the Union, improving the inclusion of SMEs and mid-caps, or the link with orders stemming from the common procurement of defence products by at least three Member States or associated countries.
4. The work programmes referred to in Article 21 shall lay down further details concerning the application of the criteria set out in paragraph 1 of this Article, including any weighting to be applied. The work programmes shall not set individual thresholds.
5. The evaluation committee may be assisted by independent external experts in accordance with Article 153(3) of the Financial Regulation. The work programmes may specify that those experts are required to hold a valid personal security clearance.
Selection and award procedure
Except for actions referred to in Article 11, Article 13(1), point (g), and Article 10(1), point (d), the Commission shall award the funding under this Chapter by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 77(4).
Union financial contribution
1. For actions referred to in Articles 13 and 35 of this Regulation, and by way of derogation from Article 193(1) of the Financial Regulation, where the Union financial contribution takes the form of grants the Programme may finance up to 100 % of the eligible costs.
2. Where the Union grant takes the form of financing not linked to costs, pursuant to Article 183(3) of the Financial Regulation, the level of the Union contribution attributed to each action may be based on factors such as:
(a)
the degree of complexity of the common procurement, for which a proportion of the estimated value of the common procurement contract and the experience gained in similar actions may serve as an initial proxy;
(b)
the contribution of the action to improving interoperability outcomes;
(c)
the characteristics of the action which are likely to give rise to greater long-term investment signals to industry, in particular where the common procurement covers activities that would be eligible for funding from the Union budget, such as research and development, testing and certification, initial production or in-service support activities;
(d)
the number of participating Member States and associated countries, or the inclusion of additional Member States or associated countries in existing cooperations;
(e)
the contribution of the action to the ramp-up of necessary manufacturing capacities;
(f)
the contribution of the action to the reduction of dependencies on non-associated countries;
(g)
the contribution of the action to enhancing cooperation between Member States or associated countries for the purpose of establishing, managing or maintaining defence industrial readiness pools;
(h)
the contribution of the action to enhancing cooperation between Member States or associated countries resulting in the common procurement of additional quantities of defence products for Ukraine or Moldova;
(i)
the complexity of the technological solutions necessary for the integration of the defence product procured within the armed forces of a participating Member State.
3. Actions referred to in Article 11 of this Regulation shall be funded by way of grants in the form of financing not linked to costs, pursuant to Article 183(3) of the Financial Regulation.
4. The Union financial contribution to each action referred to in Article 11 shall not exceed 15 % of the estimated value of the common procurement contract concerned.
5. By way of derogation from paragraph 4 of this Article, the Union financial contribution to each action referred to in Article 11 may be up to 25 % of the estimated value of the common procurement contract concerned, provided that at least one of the following conditions is met:
(a)
the action is carried out by a SEAP;
(b)
the action supports the common procurement of restriction-free end products;
(c)
the action results in the common procurement of additional quantities of defence products for Ukraine or Moldova;
(d)
the action ensures a wide distribution of suppliers across Member States whereby more than 20 % of the total value of the end product is made by suppliers established in at least one Member State other than the Member State in which the prime contractor is established;
(e)
the defence investment expenditure of the majority of Member States participating in the action concerned exceeded 30 % of their respective defence spending in the financial year preceding the application.
6. For actions referred to in Article 12, the Union financial contribution shall not exceed 35 % of the eligible costs.
7. By way of derogation from paragraph 6 of this Article, the Union financial contribution to each action referred to in Article 12 may be up to 50 % of the eligible costs where the majority of beneficiaries are SMEs or mid-caps established in Member States or in associated countries or where the action is carried out by a SEAP, and where at least one of the following conditions is met:
(a)
the beneficiary demonstrates a contribution to the creation of new cross-border cooperation between entities established in Member States or associated countries;
(b)
the action involves building new infrastructure, facilities or production lines from the ground up or on sites not previously used for such activities, contributing to the development of supply chains and technology transfer throughout the Union;
(c)
the action contributes to the establishment of new, or the ramping-up of existing, manufacturing capacities of crisis-relevant products.
8. The work programmes referred to in Article 21 shall lay down further details.
Work programmes
1. The Programme shall be implemented by work programmes as referred to in Article 110 of the Financial Regulation. Work programmes may be multiannual, when appropriate. Work programmes shall set out the actions and associated budget required to meet the objectives of the Programme and, where applicable, the overall amount reserved for blending operations.
2. The Commission shall adopt work programmes by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 77(4).
3. The work programmes shall include in particular:
(a)
the overall amount of the Union contribution to each type of action referred to in Article 10(1) and a detailed description of each type of action;
(b)
with respect to actions referred to in Articles 11 and 12, the minimum financial size of the actions;
(c)
with respect to actions referred to in Article 12, the maximum number of legal entities forming part of the consortium, which shall not exceed 15 legal entities;
(d)
the procedure for the evaluation and selection of proposals, including, where relevant, a description of the milestones, designed in such a way as to mark substantial progress in the implementation of actions, the results to be achieved and the associated amounts to be disbursed, as well as the arrangements for the verification of the milestones, the fulfilment of conditions and the achievement of results;
(e)
the overall amount of the Union contribution to joint procurement with the support of the Commission as referred to in Article 15(1), point (a), Article 15(3), Article 16 and Article 17; and
(f)
the methods for determining and, where applicable, adjusting the funding.
4. When adopting work programmes, the Commission shall take into account the need for coherence with other relevant Union programmes and instruments.
5. The financial envelope referred to in Article 3(1) may cover joint procurement as referred to in Article 15(1), point (a), which shall not exceed the parts of the contract on non-recurrent costs, including the reservation of manufacturing capacities.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
