Summary As proposed in the Cloud and AI Development Act (CADA), the Procurement Steering Committee is the strategic governance body for the common EU procurement framework for cloud computing, AI systems, and data centre services. Composed of the European Commission and one representative from each participating Member State, the Committee is responsible for strategic oversight and must approve the strategic direction of every procurement procedure before launch. Crucially, it does not manage day-to-day operations, award contracts, or set fees; those operational powers remain with the Commission. The Committee also sets the conditions for new Member States to join the framework and adopts its own rules of procedure on a Commission proposal.

Detail

The Cloud and AI Development Act (CADA), as set out in COM(2026) 502 final, establishes a mechanism for the European Commission to act as a central purchasing body for Union entities and Member State contracting authorities. This "common procurement framework" aims to harness collective buying power to reduce fragmentation, lower costs, and accelerate the uptake of sovereign and innovative cloud and AI technologies. The governance of this framework is anchored in Article 38, which creates the Procurement Steering Committee to ensure that the Commission's procurement activities align with the strategic interests of the Member States.

Composition and Membership

The structure of the Committee is explicitly defined in Article 38(4). The body is composed of:

  • The European Commission.
  • One representative from each participating Member State at the national level.

The proposal anticipates that participation may evolve over time. Article 38(6) clarifies that Member States may accede to the procurement agreement at a later stage. When they do, they shall then be represented in the Steering Committee. This ensures that the Committee's composition reflects the current membership of the framework.

Furthermore, Article 38(4) grants the Committee the flexibility to appoint additional representatives. These may include representatives from other Union entities, from contracting authorities of Member States, and from partner organisations selected by the Commission. This provision allows the Committee to incorporate broader expertise and perspectives from the entities actually executing the procurement or benefiting from the services, without diluting the primary representation of Member States.

Strategic Oversight vs. Operational Management

A fundamental distinction in the CADA proposal is the separation between strategic oversight and operational execution. Article 38(5) explicitly delineates the Committee's responsibilities. The Committee is responsible for the strategic oversight of the procurement activities. This includes two key functions:

  1. Proposing the strategic direction of the procurement agenda for a fixed period.
  2. Approving the strategic direction of each specific procurement procedure before it is launched by the Commission.

This approval mechanism ensures that every procurement action complies with the framework established by the Regulation and serves the collective interests of the participating entities. However, the Committee does not manage the daily operations. As stated in Article 38(3) and reinforced in Article 38(5), the Commission remains responsible for the operation and management of procurement activities. This includes:

  • Deciding on the launch of a procurement procedure.
  • Determining the type of procedure and contract to be used.
  • The actual award of contracts.

In essence, the Steering Committee sets the "what" and the "why" (the strategic direction), while the Commission handles the "how" (the operational execution).

Decision-Making and Rules of Procedure

The internal functioning of the Committee is governed by its own rules, ensuring procedural autonomy. Article 38(11) stipulates that the Steering Committee shall adopt its rules of procedure following a proposal from the Commission. This arrangement ensures that the Commission, as the operational manager, has input into the procedural efficiency of the body that oversees it, while the Committee retains the final authority to adopt its own governance rules.

The Committee also plays a pivotal role in managing access to the procurement framework. Article 38(8) tasks the Steering Committee with setting transparent and non-discriminatory conditions for contracting authorities of Member States to accede to the agreement. These conditions may relate to the size of the authority, minimum amounts, and other objective criteria. Additionally, the Committee establishes the rules and procedures for terminating the participation of a contracting authority that fails to comply with its obligations under the agreement.

Financial and Strategic Alignment

While the Steering Committee oversees strategy, it does not have authority over the financial charges associated with the procurement services. Article 38(5) clarifies that the Committee is not responsible for the operations of procurement activities, which explicitly includes the setting of fees. Fees are determined by the Commission under Article 40 to cover the costs incurred in carrying out the procurement activities.

The strategic direction approved by the Committee must align with the broader objectives of CADA, such as reducing dependence on third-country providers, promoting open-source solutions, and ensuring the cybersecurity and sovereignty of the cloud services procured. By approving the strategic direction of each procedure, the Committee ensures that the Commission's procurement actions support these high-level policy goals.

What this means for you

For public-sector procurement officers, IT directors, and national authorities in Member States, the existence of the Steering Committee has several practical implications:

  1. Strategic Influence: If your Member State participates in the common procurement framework, you have a direct voice in the strategic direction of EU-wide cloud and AI procurement. Your national representative on the Committee will help shape the agenda, ensuring that the procurement needs of public authorities are reflected in the Commission's activities.
  2. Access Conditions: The Committee sets the conditions for joining the framework. Understanding these conditions is crucial for local and regional authorities that may wish to participate in large-scale EU procurements without bearing the full administrative burden. The Committee determines the thresholds and criteria for accession.
  3. Compliance with Strategic Direction: Once the Steering Committee approves the strategic direction of a procurement procedure, the Commission will execute it. Procurement officers should monitor these strategic directions to anticipate what types of cloud services, AI systems, or data centre services will be available through the common framework. This can inform your own local procurement planning and help you identify opportunities to join existing framework agreements or dynamic purchasing systems managed by the Commission.
  4. Governance and Transparency: The Committee's rules of procedure, adopted per Article 38(11), will dictate how decisions are made and how disputes or access issues are handled. Familiarity with these rules will be important for resolving any issues related to participation or compliance.

Common misconceptions

  • Misconception: The Steering Committee awards the contracts.
    • Correction: No. Article 38(5) clearly states that the Commission remains responsible for the operation and management of procurement activities, including the award of contracts. The Committee only approves the strategic direction before the launch.
  • Misconception: The Committee manages the daily operations of the procurement platform.
    • Correction: No. The Commission manages the operations. The Committee's role is strictly strategic oversight.
  • Misconception: The Steering Committee sets the fees for using the common procurement service.
    • Correction: No. Article 38(5) explicitly excludes the setting of fees from the Committee's responsibilities. Fees are set by the Commission under Article 40 to cover costs.
  • Misconception: Only the Commission decides who can join the procurement agreement.
    • Correction: The Steering Committee sets the conditions for accession. Article 38(8) tasks the Committee with setting transparent and non-discriminatory conditions for contracting authorities to accede to the agreement.
  • Misconception: The Committee is a permanent body of all EU Member States.
    • Correction: The Committee is composed of the Commission and representatives from participating Member States. Member States may accede later, and their representation begins upon accession.

Related

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