Public Procurement 2026

Last Updated April 09, 2026

Italy

Law and Practice

Authors



Cleary Gottlieb opened its Rome office in 1998, followed by Milan in 2001, after decades of advising Italian companies and multinationals. Today, nearly 100 lawyers in Italy deliver integrated Italian, pan-European and global legal services across transactional, regulatory and dispute resolution matters. The firm maintains a premier, internationally oriented public law practice, assisting clients at the intersection of administrative litigation and economic regulation. The practice is a market leader in representing clients before the Regional Administrative Courts (TAR), the Council of State, and in preliminary ruling proceedings before the Court of Justice of the European Union (CJEU). It also provides EU law advice on directives, state aid, and antitrust issues affecting large public procurement and concessions. The team advises leading domestic and international companies on concessions, tenders, permits, environmental and regulatory matters, and supports major M&A transactions involving public law issues.

Public procurement in Italy is primarily governed by Legislative Decree No 36 of 31 March 2023 (the “Public Contracts Code”, or PCC), which entered into force on 1 July 2023. The PCC was subsequently amended and integrated by the “Corrective Decree” (Legislative Decree No 209 of 31 December 2024), which streamlined several procedural aspects and strengthened protections for economic operators. The PCC transposes EU Directives 2014/23/EU, 2014/24/EU and 2014/25/EU into domestic law.

The current framework is built upon a “hierarchy of principles”, where the Principle of Result (the successful and timely completion of the contract) and the Principle of Trust (protecting the legitimate expectations of both public officials and bidders) serve as the primary interpretative criteria. Since 2024, the Italian system has achieved full digitalisation. Procurement procedures are conducted exclusively through certified digital platforms interconnected with the National Public Procurement Database (BDNCP) managed by the National Anti-Corruption Authority (ANAC). This ecosystem ensures the “once-only” principle, whereby economic operators provide data and documents only once via the Virtual Economic Operator’s Folder (FVOE).

The PCC is supplemented by Annexes, which have replaced many previous secondary regulations, and by ANAC’s resolutions. EU law principles, such as equal treatment, non-discrimination and proportionality, remain directly applicable. Administrative case law plays a significant role in shaping day-to-day procurement practice.

Under the PCC, procurement regulations apply to a broad range of entities classified as “contracting authorities” (the so-called stazioni appaltanti) and “contracting entities” (the so-called enti concedenti).

Public Sector Bodies

This category includes the state, regional and local authorities, and other non-economic public bodies. It also encompasses “bodies governed by public law” (the so-called Organismi di Diritto Pubblico), which are entities possessing legal personality, established to meet specific needs in the general interest (not having an industrial or commercial character), and which are either financed, managed or supervised by a public authority.

Public Undertakings and Special Sectors

Entities operating in the “special sectors” (water, energy, transport and postal services) are subject to the PCC under a specific, more flexible regime. This includes “public undertakings” over which public authorities may exercise a dominant influence by virtue of ownership or financial participation.

In-House Entities

Awards made to “in-house” companies (entities under the “equivalent control” of the contracting authority) may be exempt from competitive tendering under strict conditions. However, these entities must strictly comply with the PCC when they, in turn, act as buyers and award contracts to third-party providers.

Private Entities and Subsidised Contracts

Private entities are subject to procurement rules in specific circumstances, notably:

  • when awarding subsidised works or services contracts in particular works contracts or certain services related to works, where more than 50% of the contract value is financed by public authorities;
  • when acting as concessionaires of public works or services; and
  • when they hold exclusive or special rights granted by a competent authority for the exercise of activities in the special sectors.

Qualification of Contracting Authorities

A key 2026 feature is the Qualification System. Not all public entities can autonomously manage tenders; they must be “qualified” by ANAC based on their organisational and technical capacity. Unqualified entities must rely on central purchasing bodies (the so-called Centrali di Committenza) or qualified aggregators.

The PCC applies to four main categories of contracts: public works, supply, service contracts, and concessions.

Contract Definitions

  • Works – construction, maintenance, or civil engineering activities.
  • Supplies – purchase, lease or hire-purchase of products.
  • Services – intellectual, technical or operational services.
  • Concessions – characterised by the transfer of operational risk (demand or supply risk) to the concessionaire.

Financial Thresholds (2026–2027)

Italian procurement law distinguishes between “above-threshold” (EU-regulated) and “below-threshold” (nationally regulated) contracts. The following EU thresholds, updated for the 2026–27 biennium, apply net of VAT.

  • Ordinary sectors
    1. EUR140,000 for public supply and service contracts awarded by central government authorities and for design contests organised by such authorities.
    2. EUR216,000 for supply and service contracts awarded by sub-central contracting authorities and related design contests.
    3. EUR5,404,000 for public works contracts.
  • Special sectors (utilities)
    1. EUR432,000 for supply and service contracts and for design contests.
    2. EUR5,404,000 for works contracts.
  • Concessions
    1. EUR5,404,000 for concession contracts.

For above-threshold contracts, the PCC aligns with EU procurement standards set by the 2014 directives, namely Directive 2014/24/EU on public procurement, Directive 2014/25/EU on utilities procurement and Directive 2014/23/EU on concessions, which establish harmonised competitive procedures across the European Union.

Below-Threshold Regime

For contracts valued below these limits, the PCC mandates simplified award methods to ensure speed and efficiency.

  • Direct award – permitted for works under EUR150,000 and services/supplies under EUR140,000.
  • Negotiated procedure – mandatory for higher values up to the EU threshold, requiring the consultation of five to ten economic operators, depending on the contract type and value.

While Italian procurement procedures are grounded in the EU principles of non-discrimination and transparency, access for economic operators varies depending on their jurisdiction of origin.

EU Economic Operators

Operators based in any EU member state enjoy full and unconditional access to all regulated procedures, guaranteed by the TFEU and the PCC. Any technical or financial requirement that creates a disguised barrier to cross-border trade is strictly prohibited.

Non-EU Operators

For operators from outside the EU, access is granted based on international reciprocity. Specifically, the following apply.

  • Operators from countries party to the WTO Agreement on Government Procurement (GPA) or other bilateral Free Trade Agreements (FTAs) with the EU are granted access to “above-threshold” tenders in accordance with the scope and conditions set out in those agreements, generally on terms comparable to EU operators.
  • Operators from third countries not covered by such agreements do not benefit from an automatic right of access. In such cases, participation may be subject to restrictions or conditions, in accordance with EU law and applicable international instruments.

Under EU Regulation 2022/1031 (IPI), which is actively monitored in 2026, the European Commission may impose restrictive measures (such as score adjustments or exclusion) on bidders from third countries that maintain protectionist barriers against EU companies.

Since 2023, and with increased scrutiny in 2025–26, bidders must notify contracting authorities of any foreign financial contributions received from non-EU countries (under EU Regulation 2022/2560) if they exceed specific thresholds. This is a mandatory step to prevent market distortion.

Under the PCC, awarding authorities are subject to a more proactive set of obligations.

Key obligations include the following.

  • The duty to achieve results – Authorities are legally bound to ensure the most efficient, timely and quality-driven award and execution of the contract. This principle guides the interpretation of all other procurement rules.
  • Mandatory qualification – Under the Qualification System, authorities must be certified by ANAC based on their organisational and technical capacity. Unqualified authorities are prohibited from managing tenders above specific thresholds and must delegate procurement to qualified central purchasing bodies.
  • Full digital life cycle management – Authorities must conduct the entire procurement life cycle, from planning to final payment, exclusively through certified digital platforms interconnected with the National Public Procurement Database (BDNCP). This includes the mandatory use of the Virtual Economic Operator’s Folder (FVOE) for verifying bidder requirements.
  • Pre-procurement market consultations – To ensure technical proportionality, authorities are encouraged (and in some cases obliged) to conduct market consultations to define the best technical solutions and tender specifications.
  • Conflict of interest and the “principle of trust” – Authorities must prevent conflicts of interest while exercising discretionary powers. The “principle of trust” protects the legitimate actions of public officials, shifting the focus from formalistic compliance to substantive correctness.
  • Price revision and contractual balance – Authorities have a mandatory obligation to include price revision clauses in tender documents to maintain the economic balance of the contract against inflation or unforeseen costs.
  • ESG and social clauses – Authorities must integrate social and environmental criteria into tender documents, ensuring minimum employment conditions and gender equality standards. Qualification requirements should not create unjustified barriers for economic operators, including cross-border participants.

Advertisement of Procurement Procedures

Italian law mandates prior advertisement for all regulated contracts to ensure market transparency and fair competition. Since 2024, the system has transitioned to a fully digital model, eliminating paper-based or local publication requirements for legal purposes. This centralised approach allows businesses to monitor all opportunities through a single electronic point of entry.

Primary Publication Channels

The legal publication of tender notices occurs exclusively through the National Public Procurement Database (BDNCP) managed by the National Anti-Corruption Authority (ANAC). All official notices and related documentation are accessible on ANACs website. For contracts exceeding EU thresholds, notices are also automatically published in the Official Journal of the European Union via the Tenders Electronic Daily (TED) portal.

Essential Information for Bidders

The advertisement must provide all key data required for a business to assess the opportunity, including the contract’s object, estimated value, and duration. It further specifies the mandatory technical and financial qualification criteria and the deadline for submission. This digital-first system ensures that all operators, regardless of their location, receive identical information simultaneously, facilitating cross-border participation.

Preliminary Market Consultations

The Italian Public Contracts Code expressly permits contracting authorities to conduct preliminary market consultations before launching a formal tender. These consultations allow the public sector to engage with market participants and experts to refine technical specifications and labels. This preparatory tool is essential for aligning public requirements with current market innovations and ensuring that the subsequent procurement is technically feasible.

Legal Safeguards and Neutrality

Consultations are purely preparatory and do not constitute a formal award procedure or a prerequisite for participation in future tenders. To maintain a level playing field, authorities must ensure that no participant gains an unfair competitive advantage. This is achieved by sharing all relevant information exchanged during the consultation with all future bidders and setting appropriate deadlines for the formal tender process.

Strategic Impact for Businesses

For economic operators, consultations provide a transparent platform to contribute technical insights and influence project definitions. While participation does not guarantee success in the final tender, it allows firms to showcase expertise in a regulated environment.

Standard Award Procedures

The Italian Code provides for various award methods, primarily distinguishing between open and restricted procedures. Open procedures allow any operator to submit a bid, while restricted procedures involve a preliminary qualification stage where only invited candidates participate. These methods are the standard for ensuring maximum competition in high-value contracts.

Negotiated and Complex Procedures

For complex or innovative projects, authorities may use the competitive procedure with negotiation or the competitive dialogue. These tools allow for the refinement of technical solutions through interaction with bidders. In specific, urgent or unique circumstances, a negotiated procedure without prior publication may be used, though it remains an exceptional measure subject to strict justification.

Limits on Negotiations

Where negotiations are permitted, they cannot alter the minimum requirements or the award criteria established in the initial tender documents. Authorities must ensure equal treatment by sharing the same information with all participants and documenting every phase of the process. This ensures that the pursuit of a tailored solution does not compromise market transparency or the level playing field.

Criteria for Selecting Procurement Procedures

The choice of procurement procedure is not entirely discretionary and depends on the contract’s value, nature and complexity. For above-threshold contracts, the open and restricted procedures are considered equivalent “standard” options, and authorities can choose between them without providing specific justification. However, moving away from these neutral models to more flexible or simplified procedures requires the fulfilment of specific legal conditions set out in the PCC.

Conditions for Negotiated Procedures and Dialogue

More complex methods, such as the competitive procedure with negotiation or competitive dialogue, are permitted only under defined circumstances. These include the following cases:

  • where the authority’s needs cannot be met through readily available market solutions;
  • when the project requires innovative design; or
  • when the technical and financial risks cannot be assessed in advance.

The use of these procedures must be motivated by the need for a tailored solution that requires interaction with economic operators.

Exceptional and Below-Threshold Choice

The negotiated procedure without prior publication is the most restricted option, permissible only in extreme cases such as objective technical uniqueness, protection of exclusive rights, or extreme urgency not attributable to the authority. Conversely, for below-threshold contracts, the legislation grants broader discretion, favouring direct awards or simplified negotiations to prioritise administrative speed and the “principle of result”.

Judicial Review and Accountability

Every choice of procedure must be adequately documented and justified within the administrative record. This ensures transparency and allows for judicial review.

Direct Awards Below EU Thresholds

Direct awards are the primary tool for low-value contracts to ensure administrative speed and efficiency. Authorities can award works up to EUR150,000 and services or supplies up to EUR140,000 without a formal tender. While simplified, these awards must respect the principle of rotation, which generally prohibits awarding a subsequent contract to the same incumbent for the same category.

Exceptional Above-Threshold Awards

For contracts exceeding EU thresholds, direct awards are strictly exceptional and permissible only under the “negotiated procedure without prior publication”. This is limited to objective technical uniqueness, protection of exclusive rights, or extreme urgency from unforeseeable events. Authorities must provide a rigorous written justification to prove that no viable competitive alternative exists.

Verification and Accountability

A direct award does not exempt the authority from verifying the contractor’s legal and professional requirements. The selection must be based on documented market prices and the operator’s proven experience. All direct awards remain subject to transparency obligations and can be challenged before Administrative Courts if the legal prerequisites for bypassing a competitive tender are not met.

Simultaneous Digital Access

All procurement documents, including technical specifications and the draft contract, must be available electronically and free of charge from the moment the contract notice is published. This ensures that bidders have immediate access to the full tender dossier. Under the current digital framework, the availability of these documents on certified platforms is a prerequisite for the legal validity of the procedure.

Minimum Deadlines for Tenders

The PCC establishes specific timelines for the publication of procurement documents, which also determine the deadlines for the submission of bids. Minimum time limits vary depending on the procedure and the contract value. In open procedures above EU thresholds, the standard deadline is 30 days from the dispatch of the contract notice. In restricted procedures, the process is divided into two phases (see 2.7 Time Limits for Receipt of Expressions of Interest or Submission of Tenders).

Mandatory Time Limits for Above-Threshold Contracts

The PCC establishes specific minimum deadlines to ensure market transparency and fair competition. In open procedures, the standard minimum period for submitting bids is 30 days from the transmission of the contract notice. For restricted procedures, the process is bifurcated: candidates have at least 30 days to submit requests to participate, followed by a further 30-day period for shortlisted firms to submit their final tenders.

Mandatory Extensions

Authorities must extend deadlines if significant changes are made to the tender documents or if mandatory site visits are required. This ensures that the push for administrative speed does not undermine the quality or fairness of the competitive process.

Reductions and Urgency

These statutory deadlines can be shortened under specific legal conditions, such as the prior publication of a “prior information notice” or cases of duly substantiated urgency, ensuring that the reduction does not compromise market access or effective competition. In such instances, the tender submission period in an open procedure can be reduced to 15 days. The mandatory use of certified e-procurement platforms since 2024 is a prerequisite for applying these accelerated “digital” timeframes, as they significantly reduce the time needed for document access.

Flexibility for Below-Threshold Contracts

For contracts below EU thresholds, the PCC grants authorities broader discretion to set deadlines that are “proportionate to the complexity and value of the award”. While there are no rigid statutory minimums for these smaller contracts, the “principle of result” dictates that time limits must still afford economic operators a genuine opportunity to prepare competitive bids.

Eligibility and Selection Criteria

The Public Contracts Code (PCC) mandates three categories of requirements for participation, ensuring that only reliable and capable operators access public tenders. All criteria must be proportionate, non-discriminatory and strictly related to the contract’s object.

Financial and Technical Suitability

Economic operators must be legally established and authorised to perform the relevant economic activity, typically demonstrated through registration in professional or commercial registers. For works contracts exceeding EUR150,000, eligibility is strictly tied to the SOA qualification system, where specialised certification bodies attest to a firm’s technical and financial capacity. For services and supplies, authorities may require specific turnover levels, previous experience, or technical certifications (eg, ISO), provided they do not exceed twice the estimated contract value.

Integrity and Mandatory Exclusion Grounds

The legislation distinguishes between two types of exclusion grounds.

  • Automatic exclusion – Triggered by definitive criminal convictions for serious offences (mafia, corruption, fraud, money laundering) or serious tax/social security breaches.
  • Non-automatic exclusion – Involves discretionary assessment by the authority regarding “grave professional misconduct”, conflicts of interest, or significant past performance failures, including breach of competition rules. In these cases, operators can invoke “self-cleaning” measures, demonstrating that they have compensated for damages and adopted technical or organisational measures to prevent future misconduct.

Participation can be restricted to a limited number of qualified suppliers in procedures involving a pre-selection phase, such as restricted procedures, competitive procedures with negotiation, and competitive dialogues. This allows authorities to manage complex tenders by inviting only those operators who demonstrate the highest levels of suitability.

Basis for Shortlisting

The selection of the shortlist must be based on objective, non-discriminatory and proportionate criteria (eg, turnover, previous experience, technical equipment) clearly defined in the contract notice.

  • If the number of qualified candidates exceeds the authority’s predefined limit, the shortlist is determined by ranking candidates according to the qualitative criteria specified in the tender documents.
  • The current Italian framework strongly discourages (and largely prohibits) the use of random draws to determine shortlists, requiring instead a qualitative assessment to ensure the “principle of result”.

Minimum Number of Candidates

The Code mandates a minimum number of invited candidates to guarantee genuine competition.

  • Restricted and negotiated procedures – A minimum of five candidates must be invited.
  • Competitive dialogue and innovation partnerships – A minimum of three candidates is generally required where the contracting authority limits the number of participants. However, where a sufficient number of suitable candidates is not available, the authority may proceed with those admitted, in line with the principles of competition and proportionality.
  • Below-threshold specifics – For smaller contracts (below EU thresholds), the law often mandates a simplified negotiated procedure where the number of invited operators varies (typically five or ten, depending on the contract value) based on the “principle of rotation”, which prevents the same firms from being invited repeatedly.

Tenders are evaluated based on pre-established criteria to ensure objectivity and transparency. The Italian Code identifies two main methods.

  • Most economically advantageous tender (MEAT/OEPV) – This is the standard criterion. It balances price and quality based on a weighted score (eg, 70% quality, 30% price). It is mandatory for technically complex contracts, social and catering services, and high-value services or supplies.
  • Lowest price – This is an exceptional criterion. It can only be used for highly standardised works or supplies where the technical specifications are fixed by the market and no qualitative competition is possible. Its use requires specific justification in the tender documents.

Qualitative Evaluation Factors

Under the MEAT criterion, authorities evaluate various qualitative elements, such as the following.

  • Technical merit – innovation, functional characteristics and aesthetic quality.
  • Sustainability – environmental impact and social considerations (eg, gender equality certifications).
  • Performance – delivery times, technical assistance and life-cycle costs (LCC).

Abnormally Low Tenders

Regardless of the criteria, authorities must verify “abnormally low tenders” that appear insufficient to cover costs. In below-threshold procedures using the lowest price, the Code provides for automatic exclusion based on mathematical formulas to prevent predatory bidding, provided at least five valid offers are received.

Awarding authorities must exclude tenders to protect the integrity of the procurement process. Under the PCC, exclusion is mandatory in the following cases.

  • Operator ineligibility – Presence of automatic exclusion grounds (eg, definitive convictions for mafia, corruption or fraud) or non-automatic grounds (eg, grave professional misconduct) that the authority deems incompatible with the contract’s performance.
  • Technical non-compliance – Failure to meet the minimum mandatory requirements or technical specifications set out in the tender documents.
  • Procedural violations – Late submission or breaches of the “anonymity rule” (where applicable), as these violate the principles of equal treatment.
  • Abnormal tenders – Offers that are economically unsustainable. Above the EU threshold, exclusion follows a mandatory consultation process (contraddittorio). Below the threshold, for lowest-price awards with at least five bidders, automatic exclusion applies based on mathematical formulas.

Limits on Exclusion

The Italian system follows the principle of “preservation of administrative acts”. Authorities must allow bidders to remedy formal deficiencies or missing documentation, provided these do not relate to the economic or technical offer itself. Failure to pay the participation fee or missing signatures are typically remediable, whereas altering the price or the technical characteristics of the bid after the deadline is strictly prohibited.

Every exclusion must be:

  • specifically reasoned – the authority must detail the legal and factual basis for the decision;
  • formally communicated – bidders must be notified via the digital procurement platform; and
  • subject to review – decisions can be challenged before the Administrative Court.

Italian law imposes a strict obligation on contracting authorities to disclose all evaluation parameters before the procedure begins. This ensures “predictability” and prevents ex-post manipulation of the results.

Selection Stage (Bidders)

The requirements for professional suitability, economic standing and technical capacity must be explicitly detailed in the contract notice or the tender specifications (the so-called disciplinare di gara). Authorities must specify:

  • minimum thresholds (eg, minimum specific turnover);
  • documentary evidence required (eg, ISO certifications or SOA attestations); and
  • methodology for shortlisting (if applicable), including any qualitative ranking factors.

Award Stage (Tenders)

For procedures using the Most Economically Advantageous Tender (MEAT), the disclosure obligation is even more granular. The authority must publish the following.

  • main criteria and sub-criteria – every qualitative aspect must be weighted (eg, 10 points for environmental sustainability);
  • scoring formulas – the specific mathematical formula used to assign points for both the technical and economic offers (eg, linear interpolation or non-linear formulas to discourage excessive price-cutting); and
  • evaluation methodology – whether scores will be assigned through a “fixed coefficient” or a “discretionary ranking” by the Selection Committee.

Awarding authorities are strictly required to notify any candidate or bidder of their exclusion from the procedure. This notice must include the specific legal and factual reasons for the decision. Under the new digital framework, this communication must be sent immediately (usually within five days) via the certified e-procurement platform to allow the excluded party to challenge the decision before the Administrative Court.

Award Notification and Transparency

For candidates who were not excluded but simply did not win (the “unsuccessful bidders”), the obligation to notify arises at the award stage. The authority must communicate the award decision simultaneously to the winner and all unsuccessful participants.

Digital Access to Documents

A major innovation of the 2023 Code is the automatic digital access. Once the award is communicated, the bids of the winner and other participants (excluding trade secrets) are often made directly available to all bidders on the platform.

Means of Communication

All notifications must be transmitted through certified digital platforms integrated with the National Public Procurement Database (BDNCP). These systems provide a legally certain timestamp for the receipt of the notice, which is essential for calculating the “standstill period” (the mandatory waiting period before the contract can be signed).

Notification of the Award Decision

Once the final award (the so-called aggiudicazione) is approved, the contracting authority has a mandatory obligation to notify all participants. This notice must be sent without undue delay of the award decision via the certified e-procurement platform used for the tender.

Required Content of the Notification

The notification must be comprehensive to allow unsuccessful bidders to evaluate the legitimacy of the process. It must include the following:

  • the identity of the successful tenderer;
  • the full ranking list and the specific scores assigned to each bidder (for MEAT/OEPV procedures);
  • a summary of the reasons for the evaluation of the winning bid compared to the recipient’s bid; and
  • information on the deadline for filing a judicial appeal (typically 30 days).

Digital Transparency and Access

Under the current “digital-first” framework, the notification usually includes a direct link to the tender’s technical and economic documents. This automatic access ensures that bidders do not have to file separate transparency requests to view the winner’s offer (excluding parts protected by trade secrets), thereby accelerating the judicial review timeline.

The Italian procurement system does not require a formal adversarial hearing phase during the evaluation and award process, in line with the procedural structure of the procurement rules of the European Union.

However, the principle of due process may require the contracting authority to provide the interested economic operator with an opportunity to submit clarifications or justifications in specific situations. This is particularly relevant where the authority intends to adopt an exclusion decision based on irregularities, abnormally low pricing or alleged professional misconduct.

Key Circumstances for Prior Hearing

The key circumstances are as follows.

  • Abnormally low tenders – This is the most critical area. An authority cannot exclude a bidder for an abnormally low price without first requesting detailed justifications (the so-called giustificativi) and allowing the bidder to explain their cost structure. This process is mandatory for all above-threshold tenders.
  • Soccorso istruttorio (procedural cure) – If a bid has formal deficiencies (eg, missing documents, unsigned forms, but not the price or technical offer), the authority must grant the bidder a period (usually five to ten days) to remedy the defect. Failure to allow this “cure” is a ground for challenging an exclusion.
  • Professional misconduct – Before excluding a bidder for “grave professional misconduct”, the authority must allow the operator to prove they have adopted “self-cleaning” measures. This is a direct application of the right to be heard.

Means of Communication

All interactions are strictly digital and written. The authority sends a request via the certified e-procurement platform, and the bidder must upload their response within the set deadline. Oral hearings are exceptionally rare and usually reserved for highly technical competitive dialogues – but even then, the outcome must be documented in writing.

The Standstill Period

A mandatory “suspension” period applies between the notification of the award and the formal signing of the contract. This interval ensures that unsuccessful bidders have an effective window to seek judicial protection or an injunction before the contractual relationship begins.

  • The contract cannot be executed until 32 days have passed from the notification of the award to all participants.
  • This period starts from the date of the last communication sent via the certified e-procurement platform. If the authority signs the contract before this deadline, the agreement may be declared ineffective by a court.

Exceptions to the Standstill Requirement

The standstill period is not absolute and does not apply in the following cases:

  • when only one tender was submitted and no other parties are entitled to challenge the award;
  • for smaller contracts awarded through simplified procedures (unless the authority voluntarily chooses to apply it);
  • certain call-offs under framework agreements or dynamic purchasing systems, provided transparency requirements are met; and
  • in cases of extreme urgency (eg, civil protection), though this must be strictly justified.

Judicial Review: TAR and Council of State

The review of procurement decisions falls within the jurisdiction of the administrative courts. The process is characterised by high speed (accelerated procedures) and strict deadlines.

  • First instance – Appeals are filed before the Regional Administrative Court (TAR). Bidders must challenge acts (eg, exclusions, award decisions) within 30 days of notification.
  • Appellate instance – Judgment of the TAR can be appealed before the Council of State (Consiglio di Stato) in Rome, which acts as the court of final instance.
  • Rulings of the Council of State are final. Further appeal to the Supreme Court of Cassation is only possible for strictly jurisdictional grounds (ie, if the administrative judge overstepped their authority), not on the merits of the case.

Non-Judicial Review: ANAC Pre-Litigation Opinions

A unique feature of the Italian system is the pre-litigation opinion issued by the ANAC.

  • At the request of the authority or a bidder, ANAC provides an opinion on disputes arising during a tender.
  • If both parties agree in advance to abide by the opinion, it becomes binding. If not, it serves as a powerful authoritative guidance.
  • It is a faster and cheaper alternative to a formal lawsuit, often used to resolve technical disagreements without halting the entire procurement process.

Judicial Remedies

Economic operators can seek protection before Administrative Court (TAR) through three main types of actions.

  • Annulment – The court can cancel unlawful acts, such as discriminatory tender rules, unjustified exclusions or illegitimate award decisions. This typically forces the authority to restart the procedure or re-evaluate the bids.
  • Ineffectiveness of the contract – If the award is annulled after the contract has been signed, the court may declare the contract ineffective. This is mandatory for “serious violations” (eg, illegal direct awards or breach of the standstill period). The court then decides whether to transfer the contract to the successful appellant (the so-called subentro).
  • Damages – Economic operators may claim damages, either as an alternative to annulment or cumulatively, provided that they prove fault, loss and causal link. If reinstatement is impossible (eg, the contract has already been performed), the court can award monetary compensation.

Interim Measures

Interim measures are a cornerstone of the Italian procurement litigation system, allowing the Administrative Court to freeze a tender before irreparable harm occurs.

Requirements for Relief

To obtain an injunction, the petitioner must demonstrate:

  • a prima facie case that the appeal is likely to succeed; and
  • a risk of serious and imminent harm (eg, the contract being signed and performed by a competitor). The PCC has reinforced the “principle of result”, which courts must now weigh against the bidder’s interest. When deciding on a suspension, judges must consider the public interest in the timely delivery of services or infrastructure.

A crucial feature of the Italian system is that filing an appeal with a request for interim measures against an award decision triggers an additional suspension of the authority’s power to sign the contract. This prevents the authority from “rushing to sign” while the court evaluates the request.

Types of Measures

The following types of interim measures are available.

  • Monocratic decree – In cases of extreme urgency, the President of the Court can grant a suspension inaudita altera parte (without a hearing) within 24–48 hours.
  • Collegial ordinance – This is the standard measure, granted after an expedited hearing where both parties are heard.

Collegial ordinance granting or rejecting interim measures may be appealed to the Council of State, ensuring a multi-level system of judicial protection within the administrative jurisdiction.

The suspension may affect the continuation of the award procedure or, where the contract has not yet been signed, prevent its execution pending the outcome of the proceedings. If the contract has already been concluded, interim relief may concern its performance, although stricter conditions apply in light of the public interest in continuity.

Standing to challenge decisions adopted in a public procurement procedure is granted to economic operators that have a direct and concrete interest in the annulment of the contested act. As a general principle, only those operators who have participated in the procedure and whose legal position has been adversely affected by the decision are entitled to bring proceedings before the competent Administrative Court.

Tenderers who have submitted a bid may challenge exclusion decisions, the award decision or other acts capable of prejudicing their chances of obtaining the contract. Likewise, candidates excluded at the selection stage have standing to contest the exclusion measure. In certain circumstances, an operator that did not submit a tender may also have standing, provided it demonstrates that it was prevented from participating due to allegedly unlawful clauses in the tender documents and that it would have had a genuine interest in competing.

Standing requires proof of a specific and current interest, not merely a general interest in legality.

Time Limits for Judicial Challenges

In Italy, procurement litigation is governed by “special rules” (the so-called rito speciale appalti) characterised by extremely short deadlines to ensure legal certainty and the continuity of public works.

  • First instance (TAR) – The standard time limit to file an appeal is 30 days.
  • Appellate instance (Council of State) – The deadline to appeal a TAR judgment is also 30 days from the formal notification of the judgment (or three months if the judgment is not notified).

The starting date depends on the nature of the act being challenged.

  • Exclusion or award decisions – The 30 days run from the formal communication via the certified e-procurement platform.
  • Tender documents – Usually, the tender notice is challenged together with the final award. However, “immediately exclusionary” clauses (eg, requirements that make participation impossible for a specific operator) must be challenged within 30 days of publication.

The 30-day period is closely linked to the automatic availability of documents on the digital platform. If the authority grants immediate digital access to the winner’s bid, the bidder cannot claim “lack of knowledge” to extend the deadline.

Procurement disputes are handled through an accelerated procedure. According to official data for 2025, the average duration is approximately 107 days at first instance (TAR) and 157 days on appeal before the Council of State. Interim relief is permitted, with decisions within 20–30 days, or even 24–48 hours in urgent cases.

Public procurement litigation remains a significant component of administrative justice in Italy. In 2025, the number of new filings increased, particularly at first instance, reflecting the impact of major investment programmes. According to official data, approximately 63.8% of procurement cases decided on the merits at TAR level are upheld, while the success rate on appeal before the Council of State is around 27.7%.

Challenging a contracting authority’s decision entails both court fees and legal representation costs. Proceedings are subject to the special regime applicable to procurement disputes, which provides for a fixed court fee (the so-called contributo unificato) higher than applicable to ordinary administrative cases. The amount varies depending on the value of the contract and the nature of the claim, but in procurement matters it typically amounts to several thousand euros at first instance (between EUR2,000 and EUR6,000).

The General Rule: Immutability of the Contract

Under Italian law, the primary principle governing public contracts is their immutability. Once a contract is awarded based on a specific bid, its terms are fixed. This ensures that the competitive balance established during the tender is not distorted afterwards. Any amendment that significantly alters the original terms is considered a new contract and, as a general rule, requires a new tender procedure.

Strict Exceptions to the General Rule

Modifications are only permissible as derogations to this principle, provided they fall into one of the following specific categories.

  • Explicit review clauses – Only if the original tender documents already contained “clear, precise, and unequivocal” clauses that predefined the scope and nature of the changes (eg, price indexation).
  • Non-substantial modifications – Changes that do not alter the “overall nature” of the contract. A modification is always forbidden if it would have attracted different bidders or changed the winner had it been included in the original tender.
  • Supplementary works/services (the necessity test) – Permissible only if a change of contractor is technically or economically impossible and would cause significant inconvenience. In such cases, the increase must not exceed 50% of the original value.
  • Unforeseeable circumstances – Modifications arising from events that a diligent contracting authority could not have predicted. This also remains subject to the 50% limit to prevent the circumvention of competitive bidding.
  • Corporate restructuring and universal succession – This is the most common case. The new operator must satisfy the same qualitative selection criteria (technical and financial) established in the original tender. The succession must not lead to other substantial modifications to the contract terms. The transaction must not be a sham intended to evade public procurement rules (eg, a sale of a business unit created solely to transfer the contract). A new operator may take over the contract following corporate events such as:
    1. mergers or acquisitions;
    2. divestiture of a business unit (cessione di ramo d’azienda); and
    3. insolvency or corporate reorganisation.

The New Duty of Renegotiation

A specific innovation of PCC is the introduction of the “Principle of conservation of contractual equilibrium”. This is not a “free pass” to modify the contract, but a mandatory mechanism to handle extraordinary and unforeseeable events. If the economic balance is severely disrupted, the parties are obliged to negotiate in good faith to restore the original value of the bargain, ensuring the public interest is still met without providing an unfair advantage to the contractor.

Termination for Breach

The awarding authority can terminate the contract if the contractor commits a serious breach (grave inadempimento). Key grounds include:

  • serious delays or failure to meet technical specifications that jeopardise completion;
  • loss, during performance, of the mandatory general or technical requirements (including exclusion grounds under Articles 94–98, such as anti-mafia issues or insolvency);
  • unauthorised subcontracting or serious breaches of labour and safety obligations;
  • repeated non-compliance with instructions issued by the contracting authority or the contract manager (RUP); and
  • unlawful substantial modifications of the contract beyond the limits permitted by law.

Termination for Legal Infringements

The authority is obliged to terminate the contract in the following circumstances.

  • A court annuls the award decision because the contract should not have been awarded to that bidder due to serious breaches of procurement law.
  • The contractor should have been excluded during the tender phase for reasons discovered only during the execution phase.

Termination for Convenience/Public Interest

The awarding authority retains a unilateral right of withdrawal during contract performance, based on a reassessment of the public interest. This power must be exercised in accordance with applicable provisions and subject to adequate notice, as provided by law or by the contract.

Contractor’s Right to Terminate

The contractor’s right to terminate is more restricted. While they can seek termination for “excessive onerousness” or “force majeure” (under the Civil Code), the PCC prioritises the principle of conservation over termination. The contractor generally cannot stop performance unilaterally without a court order, unless the authority’s breach (eg, non-payment) is extreme.

Termination Procedure

The authority must follow a strict adversarial procedure.

1. The authority issues a “notice to perform” setting a deadline (usually 15 days).

2. The contractor has the right to submit counter-arguments.

3. If the breach persists, the authority issues a formal termination decree, which is immediately enforceable.

The PCC recognises a number of special prerogatives in favour of the contracting authority, reflecting the public law nature of the contract and the need to safeguard the public interest. Public contracts are governed by private law during performance, but remain subject to certain public law powers that distinguish them from purely private contractual relationships.

Key prerogatives include the following.

  • Unilateral modification powers (ius variandi) within the limits established by procurement law, allowing the authority to order variations necessary for the proper execution of the contract, subject to statutory thresholds and compensation where due.
  • Termination for public interest reasons, even in the absence of contractor fault, where overriding public considerations justify discontinuation of the contractual relationship. In such cases, the contractor is generally entitled to compensation for work performed and documented costs incurred.
  • Monitoring and supervisory powers, including the authority to verify compliance with technical specifications, performance standards and contractual obligations throughout execution.
  • Sanctioning powers, such as the application of contractual penalties for delay or defective performance, and the possibility to initiate termination procedures in cases of serious breach.
  • Substitution or direct execution mechanisms, in certain circumstances, where the authority may arrange completion of the works or services at the contractor’s expense.

These prerogatives are balanced by principles of proportionality, good faith and legality, and their exercise remains subject to judicial review before the administrative courts.

The judicial year 2025 marked the “maturity phase” of the new Public Contracts Code. The Administrative Courts have pivoted from a formalistic approach to a substantive one, centred on the principle of result and the principle of trust.

Non-Automatic Exclusions and the “Result” (Judgment No 8661/2025)

The Council of State clarified that, under the new Code, exclusion is no longer automatic in the presence of formal irregularities. Contracting authorities must assess whether the defect actually affects the substance of the bid, in line with the principle of result. Minor omissions or non-essential formal issues do not justify exclusion, which is now considered an extrema ratio. The focus is on selecting the best contractor rather than sanctioning purely formal errors.

The Four Pillars of the So-Called Soccorso Istruttorio (Judgment No 1425/2025)

The Council of State further developed the mechanism of soccorso istruttorio, moving beyond the traditional distinction between remediable and non-remediable defects. It identified four functions:

  • integrative (to add missing documents);
  • curative (to regularise existing ones);
  • interpretative (to clarify ambiguities without altering the bid); and
  • corrective (to fix material errors before bid opening).

This reflects a more flexible and co-operative approach aimed at preserving competition.

Privacy Versus Defence: The End of Automatic Access (Judgment No 10430/2025)

Following recent EU case law, the Council of State limited the scope of access to tender documents. Access is no longer automatic, especially where trade secrets are involved. A bidder must now demonstrate that the requested information is strictly necessary for the exercise of their defence. This marks a shift towards a more balanced approach between transparency and the protection of confidential business information.

At present, no further legislative amendments are under consideration, particularly given that the PCC is still relatively recent.

Cleary Gottlieb Steen & Hamilton LLP

Piazza di Spagna 15
00187 Rome
Italy

+39 06 69 52 21

www.clearygottlieb.com
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Trends and Developments


Authors



Cleary Gottlieb opened its Rome office in 1998, followed by Milan in 2001, after decades of advising Italian companies and multinationals. Today, nearly 100 lawyers in Italy deliver integrated Italian, pan-European and global legal services across transactional, regulatory and dispute resolution matters. The firm maintains a premier, internationally oriented public law practice, assisting clients at the intersection of administrative litigation and economic regulation. The practice is a market leader in representing clients before the Regional Administrative Courts (TAR), the Council of State, and in preliminary ruling proceedings before the Court of Justice of the European Union (CJEU). It also provides EU law advice on directives, state aid, and antitrust issues affecting large public procurement and concessions. The team advises leading domestic and international companies on concessions, tenders, permits, environmental and regulatory matters, and supports major M&A transactions involving public law issues.

The End of the Promoter’s Pre-Emption Right in Italian Project Finance

A landmark 2026 ruling by the Court of Justice of the European Union (CJEU) has fundamentally altered the landscape of Italian project finance. The Court has struck down the “right of pre-emption”, a long-standing mechanism that allowed initial project promoters to match the best bid in a tender. This decision marks a significant shift towards stricter competition standards, casting doubt on traditional Italian procurement habits.

Project finance is a vital tool for developing Italian public infrastructure, allowing private firms to propose projects to the state. In this “unsolicited proposal” model, a private operator submits a feasibility study and a financial plan for public evaluation. If the administration approves the idea, a public tender is launched to select the final concessionaire. Historically, the original proposer – the “promoter” – was granted a safety net to encourage this costly preparatory work.

Under the previous legal framework (Article 183 of legislative decree 50/2016), the promoter held a powerful right of first refusal. If a competitor submitted a better offer during the tender, the promoter could simply match that offer to win the contract. To compensate the displaced bidder, the promoter only had to reimburse a small fraction of the costs, capped at 2.5% of the investment value. While this encouraged private initiative, it often discouraged third-party bidders who felt the “game was rigged” in favour of the initiator.

The European Commission and various market players have long criticised this structural advantage as a barrier to the internal market. Directive 2014/23/EU requires that all concession awards follow the principles of equal treatment, transparency and proportionality. Article 49 of the Treaty on the Functioning of the European Union (TFEU) serves as a cornerstone for cross-border business. It guarantees that economic operators established in different member states may access national markets on terms that do not distort competition. Critics argued that the Italian system allowed promoters to “wait and see”, tailoring their final commitment only after seeing their rivals’ cards. This asymmetry was seen as a deterrent to foreign companies considering entry into the Italian infrastructure market.

The conflict eventually reached the CJEU in Case C-810/24, originating from a dispute over a public contract in Milan. The case concerned a project for automated public facilities where a competitor had outbid the promoter, only to lose the contract when the promoter exercised the pre-emption right. The Italian Council of State asked the European Court to determine if such a “second chance” for promoters violated the core tenets of EU law.

In its judgment of February 2026, the CJEU ruled that the Italian pre-emption mechanism is incompatible with European law. The Court emphasised that the principle of equal treatment requires all bidders to be on the same footing when they submit their offers. Allowing one player to revise their bid after the tender ends destroys the integrity of the competitive process. Consequently, the promoter can no longer be allowed to “align” its offer with the winning bid to snatch the contract.

The CJEU also highlighted that this mechanism restricts the “freedom of establishment” within the EU. International operators are unlikely to spend resources on Italian tenders if they know their best efforts can be neutralised at the last moment. By removing this barrier, the Court aims to foster a more genuine cross-border competition for large-scale Italian concessions. The ruling confirms that policy goals, such as stimulating private investment, cannot override the fundamental requirement of transparency.

While the CJEU case focused on the 2016 Code, its logic applies directly to the current Legislative Decree No 36/2023 (PCC). The new Code had attempted to preserve the promoter’s advantage to maintain the flow of private investment in public works. Following this ruling, the Italian government will likely need to amend the PCC to remove or significantly dilute these preferential rights. Legal practitioners now anticipate a wave of litigation regarding ongoing tenders where pre-emption rights were originally advertised.

The removal of the pre-emption right does not mean promoters lose all their advantages. The original proposer still benefits from an “informational edge”, having designed the project and understood its financial complexities long before the tender starts. They are naturally better positioned to submit a highly optimised and aggressive bid from the outset. However, they must now win the contract on the merit of their first submission rather than relying on a legal safety net.

Looking ahead, the Italian market will need to find new ways to reward private innovation. We may see a shift towards “bid stipends” or higher cost-reimbursement caps to protect the early investments made by project promoters. For global investors, Italy is becoming a more transparent and competitive market, though the risks associated with being a “first mover” have undeniably increased. Reconciling private initiative with European competition standards remains the defining challenge for the next decade of Italian infrastructure.

Public Procurement and Third-Country Products: Italian Courts on the Exclusion of Non-EU Tenders

EU public procurement law rests on the premise that competition within the internal market is secured through open and transparent award procedures. Yet the growing exposure of procurement markets to global competition has raised difficult questions regarding operators from jurisdictions with different regulatory conditions. Determining where market openness begins to undermine fair competition has become a pressing concern for businesses and authorities alike.

The legal framework addresses this challenge through a combination of international commitments and EU secondary legislation. Central to this is the Agreement on Government Procurement (GPA), concluded under the World Trade Organization. The GPA establishes a multilateral regime for cross-border procurement trade based on reciprocal undertakings among its parties. In EU law, it serves as the principal yardstick for determining the treatment economic operators from third countries may claim.

The procurement directives give effect to this approach by requiring contracting authorities to treat operators from GPA signatory states no less favourably than EU counterparts. Underlying these provisions is the notion that access to EU procurement markets is conditional upon reciprocal commitments from the third country concerned. This creates a “level playing field” intended to protect the integrity of the internal market.

Italian law transposes this framework through Article 69, PCC. This article provides that works, supplies, services and operators from countries bound by international agreements with the Union are entitled to the same treatment as EU operators. This ensures that the Italian market remains open to global partners who adhere to shared competitive standards.

Alongside this general rule, EU law provides specific measures for cases where goods originate from countries that do not afford comparable market access. Under Directive 2014/25/EU, contracting entities in the utilities sector may reject a tender where more than half the product value originates in non-GPA countries. This is a critical tool for authorities managing procurement in sectors like energy, water and transport.

Under this rule, the provenance of the products offered matters more than the nationality of the tenderer. The concern is that producers outside the Union may operate free of the social, environmental and economic standards that bind EU manufacturers. The resulting cost advantage can distort competition and disadvantage compliant local bidders.

The Italian PCC transposes this mechanism in Article 170 for procurement in the utilities sectors. Under this provision, a contracting authority may reject a supply tender where more than half the total value originates in third countries. Should the authority choose not to reject such a tender, it must provide specific, documented reasons for that decision.

The Italian Council of State recently considered these rules in Judgment No 3721 of 2 May 2025. The dispute involved a procurement procedure for the supply of electric buses for regional public transport. The tenderer intended to rely on the technical capacity of an auxiliary undertaking established in China.

The contracting authority excluded the tenderer because the auxiliary undertaking was based in a country that had not acceded to the GPA. On appeal, the tenderer argued that neither EU nor national law lays down a blanket prohibition on third-country participation. They further contended that the procurement documents contained no express restriction to EU-based operators.

The Council of State dismissed the appeal, stressing that market openness operates within a framework built on reciprocity. The court held that access by operators from third countries is not guaranteed in the absence of international agreements. Consequently, the exclusion was deemed consistent with the rules governing admission to public procedures.

A related question came before the court in Judgment No 9575 of 4 December 2025 regarding water distribution infrastructure. The contracting authority rejected a tender after the bidder disclosed that more than half the product value was of third-country origin. This triggered the protective mechanisms outlined in the utilities procurement rules.

The excluded tenderer argued that the authority should have assessed the technical merits of the offer before deciding on exclusion. The Council of State disagreed, clarifying that Article 170 establishes rejection as the default rule for such tenders. Under this interpretation, it is the decision to retain the tender that constitutes an exception requiring an express statement of reasons.

Taken together, these rulings clarify how Italian administrative courts are applying rules to third-country operators and products. While EU law champions international competition, these decisions point to a more assertive use of reciprocity to shield the market. For clients, this highlights the vital importance of auditing supply chain origins before submitting a bid in the Italian utilities sector.

Algorithmic Administration and Public Procurement

Over the past two decades, public procurement has shifted from a paper-based activity to a highly digitalised regulatory environment. In this evolving context, artificial intelligence and algorithmic tools are increasingly deployed to support the exercise of public powers. A key emerging trend is the growing judicial scrutiny regarding how such tools are integrated into administrative decision-making. The central question for administrative law is no longer whether these technologies may be used, but on what terms their implementation remains consistent with established legal principles.

Beyond efficiency gains, digitalisation also serves a vital market-integration function. By reducing informational asymmetries and transaction costs, it lowers barriers to entry for foreign operators and facilitates broader participation in procurement procedures across jurisdictions. The Italian legal system has confronted this evolution with notable directness through its legislative framework. The new PCC addresses the use of algorithmic and automated processes across the full life cycle of public contracts.

The sheer scale of contemporary procurement creates a strong incentive to introduce tools capable of flagging anomalies and accelerating verification. However, greater reliance on such tools also sharpens concerns about transparency, accountability and the preservation of procedural safeguards. Article 30 of the PCC responds to these tensions by laying down a principled framework for automation in procurement. This provision encourages contracting authorities to adopt technological solutions wherever feasible to enhance efficiency and process management.

In particular, Article 30 seeks to reconcile innovation with the following core principles:

  • impartiality;
  • equal treatment;
  • transparency; and
  • good administration.

The resulting design embodies a dual logic where automation is promoted as a means of improving performance while remaining embedded within a system of legal guarantees. Under this framework, authorities are expected to treat automation as a legitimate instrument for carrying out complex procurement tasks. At the same time, the use of these tools is conditioned on requirements designed to prevent systems from displacing human responsibility.

These safeguards include obligations relating to the intelligibility of algorithmic processes and the availability of meaningful human oversight. The overarching aim is to forestall situations in which decisions become effectively inscrutable due to technological complexity or proprietary restrictions. The challenge is not simply to regulate technology as such, but to determine how classical legal principles function when public decisions are assisted by automated processes. The Italian Council of State addressed this challenge in Judgment No 4857 of 4 June 2025.

This case arose from a tender procedure managed through an electronic platform that handled the submission and verification of bids. Economic operators were required to generate a digital fingerprint identifying their relevant files before final submission to ensure document integrity. During verification, one operator was excluded after the system detected a mismatch between the original fingerprint and the uploaded document. The operator subsequently challenged both the exclusion and the authority’s refusal to grant access to the platform’s source code.

The dispute raised a question of wider significance regarding whether the algorithm itself formed part of the administrative decision-making process. In its reasoning, the Council of State drew a conceptual distinction that has since become central to the debate on algorithmic administration. The court distinguished between algorithms that merely assist administrative activity and those that effectively determine the outcome of a procedure. This functional test is increasingly adopted by Italian courts to determine the level of disclosure required.

Systems performing mechanical or verification tasks remain governed by ordinary procedural rules and generally require less disclosure. Conversely, systems that autonomously generate outcomes attract heightened obligations of transparency and oversight under the Public Contracts Code. The significance of this distinction is further illustrated in Judgment No 4546 of 2025 by the Regional Administrative Court for Lazio. This dispute concerned the use of artificial intelligence by economic operators rather than the contracting authority itself.

The applicant challenged an award, contending that the successful tenderers had relied on AI tools within their technical proposals for healthcare cleaning services. The court held that incorporating AI tools within a technical proposal does not, by itself, alter the legal framework for evaluating bids. Crucially, these tools were described as instruments assisting operational planning and service optimisation rather than autonomously determining contractual performance. The court found that such use did not undermine the reliability or validity of the offers.

Read together, these two decisions sketch the contours of an emerging judicial approach to artificial intelligence in procurement law. The courts show no inclination to reject algorithmic technologies outright or to treat them as legally disruptive innovations demanding entirely new categories. Instead, their method is granular, identifying the concrete role played by the technology within the procedure. This role is then assessed through the lens of established legal principles such as legality and transparency.

What these decisions convey is a firm restatement of the principles that have long governed public action in Italy. Algorithmic tools are not treated as autonomous actors capable of overriding the duty to give reasons or the right to judicial review. Their deployment instead becomes an occasion to reaffirm that every public decision must satisfy fundamental standards of lawful administration. For practitioners, the message is clear: integrating AI into public procurement does not call for a wholesale reinvention of administrative law.

The emerging judicial approach requires authorities to ensure that algorithmic tools remain transparent, reviewable, and subject to effective human oversight. Digitalisation and algorithmic administration do not erode the foundations of administrative legality; rather, they test and ultimately confirm their resilience. This balanced approach provides a stable environment for both contracting authorities and bidders navigating the 2026 procurement landscape.

Cleary Gottlieb Steen & Hamilton LLP

Piazza di Spagna 15
00187 Rome
Italy

+39 06 69 52 21

www.clearygottlieb.com
Author Business Card

Law and Practice

Authors



Cleary Gottlieb opened its Rome office in 1998, followed by Milan in 2001, after decades of advising Italian companies and multinationals. Today, nearly 100 lawyers in Italy deliver integrated Italian, pan-European and global legal services across transactional, regulatory and dispute resolution matters. The firm maintains a premier, internationally oriented public law practice, assisting clients at the intersection of administrative litigation and economic regulation. The practice is a market leader in representing clients before the Regional Administrative Courts (TAR), the Council of State, and in preliminary ruling proceedings before the Court of Justice of the European Union (CJEU). It also provides EU law advice on directives, state aid, and antitrust issues affecting large public procurement and concessions. The team advises leading domestic and international companies on concessions, tenders, permits, environmental and regulatory matters, and supports major M&A transactions involving public law issues.

Trends and Developments

Authors



Cleary Gottlieb opened its Rome office in 1998, followed by Milan in 2001, after decades of advising Italian companies and multinationals. Today, nearly 100 lawyers in Italy deliver integrated Italian, pan-European and global legal services across transactional, regulatory and dispute resolution matters. The firm maintains a premier, internationally oriented public law practice, assisting clients at the intersection of administrative litigation and economic regulation. The practice is a market leader in representing clients before the Regional Administrative Courts (TAR), the Council of State, and in preliminary ruling proceedings before the Court of Justice of the European Union (CJEU). It also provides EU law advice on directives, state aid, and antitrust issues affecting large public procurement and concessions. The team advises leading domestic and international companies on concessions, tenders, permits, environmental and regulatory matters, and supports major M&A transactions involving public law issues.

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