Summary Under the proposed Cloud and AI Development Act (CADA), the Procurement Steering Committee acts as the strategic governance body for the common procurement framework, distinct from the operational management retained by the European Commission. As proposed in Article 38, the Committee holds three decisive powers: (1) it exercises "strategic oversight" by proposing the procurement agenda and approving the strategic direction of every procedure before launch; (2) it establishes "transparent and non-discriminatory" conditions for Member States and contracting authorities to accede to or terminate participation; and (3) it may condition accession on the acceptance of specific ancillary support services. The Committee does not select vendors or manage daily tender operations.

Detail

The proposed Cloud and AI Development Act (CADA), COM(2026) 502 final, establishes a mechanism for the European Commission to act as a central purchasing body for cloud computing services, data centre services, software, and AI systems on behalf of Member States and Union entities. While the Commission executes the procurement, the Procurement Steering Committee serves as the strategic decision-making body ensuring alignment with Union objectives and the interests of participating entities.

The legal basis for this body is Article 38 of the proposal. The text explicitly delineates the boundary between strategic governance and operational execution to ensure efficiency while maintaining democratic oversight.

1. Strategic Oversight and Agenda Approval

The primary mandate of the Steering Committee is defined in Article 38(5). The Committee is responsible for the "strategic oversight of the procurement activities." This is not a passive advisory role; it involves active decision-making on the direction of the framework.

Specifically, the Committee is tasked with:

  • Proposing the strategic direction of the procurement agenda: The Committee sets the high-level priorities for a fixed period. This determines which sectors, technologies, or types of services (e.g., sovereign cloud, AI systems) will be the focus of joint procurement efforts.
  • Approving the strategic direction of each procedure: Before the Commission can launch any specific procurement procedure, the strategic direction of that procedure must be approved by the Committee. This ensures that individual tenders align with the broader agenda and the framework established by the Regulation.

Crucially, Article 38(3) clarifies that the Commission retains full responsibility for the "operation and management of procurement activities." This includes deciding on the launch of a procedure, the type of procedure (e.g., open, restricted), the type of contract, and the actual award of contracts. The Steering Committee does not intervene in these operational details, nor does it select individual vendors or negotiate specific contract terms. Its role is to ensure the strategic soundness of the procurement pipeline, not to manage the pipeline itself.

2. Setting Accession and Termination Conditions

The framework is designed to be dynamic, allowing Member States and contracting authorities to join at different times. To maintain the integrity and manageability of the joint procurement pool, Article 38(8) grants the Steering Committee the authority to define the rules of entry and exit.

The Committee must set "transparent and non-discriminatory conditions for contracting authorities of Member States to accede to the agreement." These conditions are not arbitrary; the text specifies they may relate to:

  • Size: The scale of the contracting authority.
  • Minimum amounts: Thresholds for procurement volumes or values.
  • Other objective criteria: Any other measurable standards necessary for effective participation.

By setting these criteria, the Committee ensures that participating entities have a sufficient stake in the joint efforts and that the administrative burden remains proportional to the benefits.

Furthermore, Article 38(8) empowers the Committee to establish "the rules and procedures governing the termination of participation." If a contracting authority fails to comply with its obligations under the agreement, the Committee-defined rules dictate how and when that participation ends. This provides a clear governance mechanism to enforce compliance and protect the interests of other participants.

3. Conditioning Accession on Ancillary Services

A unique feature of the CADA procurement framework is the Commission's ability to provide ancillary support services to participating entities. Under Article 37(4), the Commission may offer technical infrastructure, advice on preparing procedures, contract management, and invoicing services.

To ensure the sustainability of these support mechanisms and to standardize processes across the Union, Article 38(10) grants the Steering Committee a specific power: it "may make accession to the agreement conditional on participating entities accepting one or more ancillary support services."

This means that a contracting authority wishing to join the joint procurement framework might be required to use the Commission's centralized technical platform for contract management or its invoicing system. This provision prevents a "cherry-picking" scenario where authorities benefit from the pooled buying power while bypassing the administrative infrastructure that makes the framework efficient. It ensures that the administrative costs are covered and that the system operates cohesively.

4. Composition and Governance

The composition of the Committee is designed to balance EU-level oversight with national representation. Article 38(4) establishes that the Committee is composed of the Commission and "one representative from each participating Member State at the national level."

As Member States accede to the agreement at a later stage, they are represented in the Committee. Additionally, the Committee may appoint "additional representatives of other Union entities, of contracting authorities of Member States and of partner organisations selected by the Commission." This flexibility allows for broader stakeholder input while maintaining a core national representation.

The Committee adopts its own rules of procedure following a proposal from the Commission, as stated in Article 38(11). While the proposal does not specify the exact voting majority required for decisions in the text, the requirement for "transparent and non-discriminatory" conditions implies a need for clear, agreed-upon procedural rules to be established in the initial agreement or secondary legislation.

What this means for you

For public-sector procurement officers and national authorities, the role of the Steering Committee defines the boundaries of your participation in the CADA framework.

  • Strategic Influence, Not Operational Control: If your authority joins the framework, you will not be negotiating individual contracts with the Commission. Instead, your influence is exercised through your national representative on the Steering Committee. This representative will help shape the procurement agenda and approve the strategic direction of future tenders.
  • Mandatory Conditions for Entry: You cannot assume that any public authority can join the framework unconditionally. The Steering Committee will set objective criteria (e.g., minimum spending thresholds). If your authority does not meet these criteria, it may be excluded from the joint procurement pool.
  • Ancillary Services May Be Mandatory: Do not assume you can opt out of the Commission's support services. If the Steering Committee decides that using the Commission's technical platform or invoicing system is a condition for accession, you must accept these services to participate. This is a trade-off for access to the collective buying power and the streamlined administrative framework.
  • Compliance is Enforceable: The termination rules set by the Committee are binding. Failure to comply with the agreement's obligations could lead to the termination of your participation, cutting off your access to the joint procurement opportunities.

Common misconceptions

"The Steering Committee runs the tenders." No. Article 38(3) explicitly states that the Commission is responsible for the "operation and management of procurement activities," including launching procedures and awarding contracts. The Committee's role is strictly strategic oversight and agenda approval.

"Any public authority can join without meeting specific criteria." Incorrect. Article 38(8) empowers the Steering Committee to set "transparent and non-discriminatory conditions" for accession, which may include size or minimum amount criteria. Participation is not automatic for all entities.

"I can use the joint procurement but refuse the Commission's support services." Not necessarily. Article 38(10) allows the Steering Committee to make accession conditional on accepting ancillary support services. If the Committee sets this condition, you must accept the services to join the framework.

"The Committee decides which vendor wins." The Committee does not select vendors. Its role is to approve the strategic direction of the procedure before it is launched. The actual selection of the winning tender is an operational decision made by the Commission under Article 38(3).

Related

This is general information about a draft EU regulation, not legal advice.