Supporting the AI Observatory

Overview

European Commission DG CNECT has issued an open public procurement (EC-CNECT/2026/OP/0173) to set up and operate an AI Observatory to support the Apply AI Strategy, including development of a monitoring framework (up to 15 KPIs), regular sectoral and cross-cutting reports, stakeholder dialogues, and an accessible Drupal-based web platform. The contract is a fixed-price service contract with an estimated total value of €2,500,000 and a maximum duration of 36 months. Submission is electronic only via the EU Funding & Tenders Portal (EU Login/PIC required) and the deadline for receipt of tenders is 03/11/2026 at 16:00 (Europe/Brussels). Tender evaluation follows a best price-quality ratio (65% quality, 35% price) with detailed selection, security, and documentation requirements set out in the procurement documents.

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Highlights

What it funds

Scope

A services contract to set up and operate an EU AI Observatory for 36 months:develop a monitoring framework and KPIs, produce sectoral and cross-cutting reports, manage an interactive Observatory website and visualisations, support sectoral dialogues and provide regular progress reporting.

Estimated value:Estimated total procedure value: €2,500,000 1

Who can apply

Open procedure for economic operators (companies, consultancies, research organisations, consortia). Tenders must be submitted electronically via the EU Funding & Tenders Portal. Participants must be registered in the Participant Register (PIC) and use EU Login for eSubmission.

  1. 1Contract type: services; CPV 73200000 (R&D consultancy services)
  2. 2Maximum contract duration: 36 months
  3. 3Award method: best price-quality ratio

Key dates and practical info

Procedure:Open procedure with electronic submission. Deadline for receipt of tenders (local time, Europe/Brussels): 03/11/2026 16:00. Public opening: 04/11/2026 10:00. TED publication: 05/10/2026. Manage documents and submit via the portal.

Where to apply:Apply and download procurement documents on the Funding & Tenders Portal F&T Portal.

Assessment focus

Evaluation will follow the tender specifications:technical quality (methodology, workplan, team), organisation and resources, quality control and price. Deliverables include a beta Observatory website, periodic sectoral and cross-cutting reports, progress reports and final report.

ElementSummary
Contracting authorityEuropean Commission, DG CNECT (AI Office)
Nature of contractServices (direct service contract, open procedure)
Estimated total value€2,500,000
Max. duration36 months
SubmissionElectronic via F&T Portal (EU Login, PIC required)

Footnotes

  1. 1Tender reference EC-CNECT/2026/OP/0173. Procurement documents and tender specifications are published on the F&T Portal linked above.

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Breakdown

Basic facts

Title:Supporting the AI Observatory. Reference: EC-CNECT/2026/OP/0173. Procedure type: Open procedure. Submission method: Electronic via EU Login / eSubmission. TED references: 192/2026 and 681546-2026. Lead contracting authority: European Commission, DG CNECT - Communications Networks, Content and Technology, Artificial Intelligence Office. Main CPV classification: 73200000 Research and development consultancy services. Nature of contract: services. Maximum contract duration: 36 months. Award method: best price-quality ratio. Estimated total value: €2,500,000. Publication date on F&T Portal / TED: 05/10/2026. Deadline for receipt of tenders (closing): 03/11/2026 16:00 Europe/Brussels. Public opening: 04/11/2026 10:00 Europe/Brussels.

What the contract will buy

Purpose:support the Commission's Apply AI Strategy by setting up and operating an AI Observatory for up to 36 months. Core tasks: develop a robust monitoring framework for AI indicators (maximum 15 indicators, transparent methodology, monthly updates where possible); prepare sector-specific qualitative monitoring reports (10 sector reports per year; first batches and iterative validation via structured sectoral dialogues); prepare cross-cutting thematic reports (3 per year); develop, manage and maintain an interactive AI Observatory website (Drupal, hosted on the Digital Strategy subdomain) including data visualisations (WEBTOOLS/Highcharts/Leaflet), a reports repository, a policy tracker for Apply AI actions, and sector overview fiches. Deliverables include kick-off report; architecture and beta platform; accessibility report and accessibility statement; periodic progress reports and meetings; recurring batches of sectoral reports and cross-cutting reports; final report. The contracting authority will own all deliverables and website IP; commission will reuse outputs under CC BY 4.0 where applicable. The tenderer must ensure licences for third-party data and rights where needed.

Key technical and operational requirements

Monitoring framework:up to 15 KPIs covering AI uptake, AI investments, patents, skills and computing infrastructure, and socio-economic impacts (labour market, productivity, environment). Data acquisition includes licensing where necessary; indicators should allow EU and Member State breakdowns and comparisons with other major regions (US, China, India, South Korea, Japan, UK, Canada, Brazil, Ukraine, Saudi Arabia) when relevant. Sector reports: desk research, stakeholder interviews, use-case identification (minimum five AI use cases per sector), assessment of maturity, scalability, data and computing requirements, impact and policy recommendations. Cross-cutting reports: analysis of e.g. SME adoption, AI literacy, labour market impacts, digital infrastructure challenges. Website: accessible (WCAG 2.1 AA), hosted on the Commission digital-strategy subdomain, built with Drupal and OpenEuropa tools, follows Europa web guide and WEBTOOLS guidelines, implements cookie consent kit, follows Commission legal and privacy notices, and complies with Commission IT security standards and decision 2017/46. The contractor will support IT security risk assessment and security plan and must follow the security appendices and baseline for external connections in the procurement documents.

Procurement and submission

Procedure:open procedure through the EU Funding & Tenders Portal eSubmission. A Participant Identification Code (PIC) is required for each legal entity participating. Only electronic submissions via eSubmission are accepted; no paper or email submissions. Copies of the Invitation to tender, Tender Specifications, Draft Contract and Annexes (including security appendices, financial form, declaration on honour, power of attorney, technical annexes) are available on the F&T Portal. Questions are submitted via the Portal Q&A tool; contracting authority may refuse to answer questions received less than six working days before deadline. Tender validity period is as published in the contract notice. Tenders may be withdrawn or replaced before the deadline; if multiple tenders are submitted by the same tenderer, only the latest will be considered.

Award criteria and scoring

Award formula:best price-quality ratio with quality weighting 65% and price 35%. Quality is evaluated against detailed technical criteria with sub-criteria, including methodology and tools (60 points, threshold 36), organisation of work and resources (30 points, threshold 18), and quality control measures (10 points, threshold 6). A minimum technical score of 60/100 (overall technical threshold) is required for award. Price is evaluated as total fixed price (fixed, not subject to revision) inclusive of all expenses. The contracting authority may detect and reject abnormally low tenders in line with the Financial Regulation.

Eligibility and selection

Eligible applicants:economic operators and natural persons from countries covered by EU procurement rules (EU Member States and third countries with procurement access agreements such as GPA members), international organisations. Participation is open to single tenderers or groups (joint tenders). Subcontracting is allowed but identified subcontractors above 15% share or subcontractors relied on for selection criteria must be declared and submit commitment letters. Tenderers must not be subject to EU restrictive measures and must meet exclusion and selection criteria. Declaration on honour (Annex 2) must be submitted. Selection criteria include legal and regulatory capacity, economic and financial capacity (average turnover last two years above €750,000, consolidated), and technical and professional capacity: experience (two similar projects >= €500,000 in last three years), and key personnel profiles (project manager with at least seven years, policy experts with AI/data analysis experience, communication expert, web architect/UI/UX, Drupal developer 5+ years, data expert with JavaScript/JSON/Highcharts and experience with MS Excel/CSV/JSON pipelines). Evidence of required projects and CVs must be provided with the tender.

Consortium, subcontracting and required documents

Joint tenders:groups must appoint a group leader and provide a signed Agreement/Power of Attorney (Annex 3). All group members are jointly and severally liable. Identified subcontractors with a known share >15% or relied-on entities must be listed in Annex 4 and provide commitment letters (Annex 5.1 for identified subcontractors and Annex 5.2 for entities on whose capacity is relied). Financial form (Annex 6) must be completed. Tender submissions must include the technical tender (maximum 60 pages), the financial tender (fixed-price, using Annex 6 template), declarations (Annex 2), agreement/power of attorney (if joint tender), list of identified subcontractors, and CVs and project references for key personnel and projects. Evidence requested by the EU Validation Services on legal and financial capacity may be required during the evaluation; tenderers must be registered in the Participant Register and have valid PICs.

Security and data protection

All work must comply with Commission security requirements. The procurement includes two security appendices: Appendix 1 Security Requirements for Commission’s Contractors (includes ethics reminder and personnel screening requirements) and Appendix 2 Security Baseline for External Connections (rules for contractors and service providers including Acceptable Use Policy). Remote service delivery must follow the Security Baseline; service providers working on Commission IT must undergo appropriate screening and may require SECEM certificates and local clearance for access to Commission premises and systems. Processing of personal data must comply with Regulation (EU) 2018/1725; contractor must ensure data processing is limited to EU/EEA locations unless prior written authorization and appropriate safeguards are in place. The contractor must provide a list of pre-existing rights and secure licences for third-party datasets; the contractor must ensure necessary rights for data use and make data visualisations and indicators available for download compliant with Commission reuse policy and licensing rules.

Payments, pricing and invoicing

The contract foresees a fixed-price lump sum for the services, inclusive of all expenses (A+B+C+D). No price revision during the first year. Payment schedule: two interim payments (40% and 30%) tied to progress reports and deliverables and a final payment of the balance (30%) upon approval of final deliverables. Invoices to be submitted via the electronic exchange system (Portal) or as specified. VAT treatment: the Commission is generally VAT-exempt; special VAT annex for groups is provided if local VAT rules apply. All costs for preparation and submission of the tender are borne by tenderers.

Reporting, meetings and deliverable acceptance

Deliverables and reports are to be provided in English. Timetable includes kick-off meeting and report (month 1), beta platform (month 2), platform pages for publication by month 4, recurring sector report batches every six months, cross-cutting reports every four months (first year timing differs), progress reports and meetings (every 6 months) and final report at month 36. Accessibility report and statement required. Drafts must be shared for comments (drafts typically 4 weeks prior to delivery), Commission will approve or request revisions within specified timeframes (14 or 20 calendar days depending on deliverable). Progress meetings every two weeks between contractor and Commission project representatives are required for steering.

Templates and application structure

Mandatory templates and annexes provided in procurement documents:Annex 1 List of documents to be submitted (technical tender, financial tender using Annex 6 financial form, Declaration on Honour Annex 2, Agreement/Power of Attorney Annex 3 for joint tenders, Annex 4 list of identified subcontractors, Annex 5.1 and 5.2 commitment letters, Annex 6 Financial tender form, Annex 7 Technical Annexes). The financial form requires detailed staff day rates by seniority and role, number of days, breakdown per task, travel and subsistence, licensing rights costs, other costs and a single fixed price inclusive of all expenses. The Declaration on Honour covers exclusion and selection criteria and must be signed by authorised representative (QES recommended). Identification of authorised signatories and delegation documents must be available on request.

Eligible Applicant Types

Eligible applicant types include private sector service providers and consultancies (large enterprises, SMEs), research organisations and universities, research institutes, nonprofits and NGOs, consortia / groups of legal persons (joint tenders are permitted), subcontractors, and international organisations when allowed by procurement access rules. Individual natural persons may participate where procurement rules allow. Public authorities and entities are eligible provided they meet access rules. Tenderers from countries covered by EU procurement access rules (EU, GPA parties, other eligible third countries and associated partners) may participate. The procurement specifically expects contractors able to provide research and development consultancy services, web development and data science capabilities.

Funding Type

This is a public procurement contract (service contract) issued by the European Commission. Funding modality: service contract (procurement), fixed-price remuneration. Not a grant, loan or equity instrument.

Consortium Requirement

Both single tenderers and consortia (joint tenders) are permitted. If a joint tender is submitted, an Agreement/Power of Attorney (Annex 3) must be provided signed by all members, appointing a group leader for communication and contractual signature. Joint tenders require joint and several liability among members. Identified subcontractors and entities relied upon must be declared (Annex 4, 5.1, 5.2).

Beneficiary Scope (Geographic Eligibility)

Geographic eligibility follows EU procurement access rules:economic operators established in Member States of the EU, EEA where applicable, countries with special procurement access agreements (e.g. GPA members), and third countries eligible under relevant Union programmes or association arrangements. The contracting authority may accept tenders from international organisations and firms established in eligible third countries provided access rules apply at award time.

Target Sector

The contract targets cross-sectoral AI monitoring and evidence provision covering:AI uptake indicators, strategic sector monitoring (list of strategic sectors in the Apply AI Strategy: healthcare incl. pharmaceuticals; mobility, transport and automotive; robotics; manufacturing, engineering and construction; agri-food; climate and environment; electronic communications; defence, security and space; energy; cultural and creative sectors including media; tourism; finance; e-commerce), cross-cutting issues (skills, labour market impacts, infrastructure and policy actions). The main classification (CPV) is Research and development consultancy services (73200000).

Mentioned Countries

The procurement text explicitly mentions EU Member States and other major regions for benchmarking including the United States, China, India, South Korea, Japan, the United Kingdom, Canada, Brazil, Ukraine and Saudi Arabia. The contracting authority is the European Commission (headquartered in Belgium). The platform will link to national AI strategies of Member States and the Observatory will present EU and Member State breakdowns.

Project Stage

Expected maturity:monitoring and analysis of adoption and impact (research, monitoring, validation, demonstration, and policy support). Activities require data acquisition, research synthesis, qualitative validation & stakeholder engagement, web development and continuous operation. The contract expects providers with experience across research, data analytics, web development and policy support.

Funding Amount

Estimated total value of the procurement procedure:€2,500,000 (total overall contract amount). The contract is a fixed-price service contract; financial offer must be a fixed price inclusive of all expenses. Payment profile: interim payments (40%, 30%) and final balance (30%) tied to deliverables.

Application Type

Application method:open call via public procurement on the EU Funding & Tenders Portal. Submission is electronic only (eSubmission) through the Portal, requiring EU Login and Participant Register PIC. Not an invitation-only or rolling call.

Nature of Support

The contractor will receive monetary remuneration under a service contract (fixed price). The contracting authority will also use non-monetary collaboration (access to Commission offices and relevant experts, provision of guidance, publication channels) and will own the intellectual property of the results. The expectation is delivery of money-based payments in return for services.

Application Stages

The procurement is a single-stage tender submission (one step to submit technical and financial offers). The evaluation includes steps: administrative compliance, exclusion and selection checks, technical quality scoring, price evaluation, ranking by best price-quality ratio, and award. There is no multi-stage submission described (e.g., no B-stage for shortlisted bidders).

Success Rates

The tender is an open EU procurement; historical success rates vary by procedure and number of submissions. No explicit success rate is provided in the procurement documents. Success depends on meeting mandatory selection criteria, passing exclusion and technical thresholds, and offering a competitive price in the best price-quality ratio evaluation.

Co-funding Requirement

No co-funding from the contracting authority is required beyond the fixed-price contract amount. The contract price is fixed and inclusive of all costs; tenderers must budget the full cost of services. No matching funds or co-financing requirement is described.

Templates and application form structure

Mandatory documents and templates to submit via eSubmission:technical tender (max 60 pages), financial tender using Annex 6 - Financial form (fixed price and detailed cost breakdown by staff days, travel & subsistence, licensing costs, other costs), Annex 2 Declaration on Honour on exclusion and selection criteria (signed), Annex 3 Agreement/Power of Attorney for joint tenders, Annex 4 List of identified subcontractors and proportion of subcontracting, Annex 5.1 commitment letter by identified subcontractor (if applicable), Annex 5.2 commitment letter by entity on whose capacity is being relied, Annex 6 financial tender form (Excel template), Annex 7 technical annexes and other supporting documents, Appendix 1 & 2 security documents and model contract. Tenderers must follow the Tender Specifications (Annex I) for detailed structure, submit CVs of core team and project plan and workplan and deliverables schedule. Electronic signatures: qualified electronic signatures (QES) are recommended; handwritten signatures accepted where QES is not available.

How to prepare a compliant tender (practical checklist)

  1. 1Register organisation in Participant Register and obtain PIC; ensure EU Login account is ready for eSubmission.
  2. 2Build a consortium or single tender approach and, if joint tender, prepare Annex 3 Agreement/Power of Attorney and appoint group leader.
  3. 3Prepare technical tender: methodology, monitoring framework proposal (up to 15 indicators), sector report approach, examples of five AI use cases per sector, website architecture and data visualisation approach, accessibility plan (WCAG 2.1 AA), security approach and staffing plan with CVs of core team (project manager, policy AI experts, communication expert, web architect/UI/UX, Drupal developer, data expert).
  4. 4Prepare financial tender using Annex 6: provide fixed price inclusive of all expenses, detailed staff rates and days, travel & subsistence, licensing costs, other costs. Ensure fixed price equals total requested. Provide breakdown for evaluation but final price is fixed.
  5. 5Complete Declaration on Honour (Annex 2) and ensure evidence for selection criteria is ready if requested. Prepare identified subcontractors list (Annex 4) and commitment letters if applicable (Annex 5.1/5.2).
  6. 6Ensure all documents comply with security appendices (Appendix 1 and Appendix 2) and be prepared for personnel screening and SECEM where required.
  7. 7Upload all files in eSubmission before the deadline, check submission receipt timestamp and retain proof.
  8. 8Plan for possible clarifications and replies within the procurement timeline; follow Q&A on the Portal.

Summary: What is this opportunity about and how to explain it?

This is an EU public procurement to contract a professional service provider to set up and operate an AI Observatory for up to 36 months. The contractor will design a robust monitoring framework with up to 15 transparent indicators to track AI adoption, investments, patents, skills, computing infrastructure and socio-economic impacts across strategic sectors; produce regular sectoral (10/year) and cross-cutting (3/year) qualitative monitoring reports; organise and support sector dialogues; and design, develop, host, operate and maintain an accessible and interactive web platform (Drupal) to publish data visualisations, trackers and repositories. The contract is a fixed-price service contract (estimated total €2.5M) awarded on a best price-quality ratio. Applicants must be able to deliver research and policy analysis, data collection and visualisation, web development (Drupal), accessibility and security compliance, plus stakeholder engagement. Submissions are electronic only via the EU Funding & Tenders Portal and must include technical and financial offers, declaration on honour, and contractual annexes. The procurement documents include detailed tender specifications, security appendices, templates and examples to guide bidders. The Observatory will be a central evidence tool to support the Apply AI Strategy, monitor AI impacts, and inform policy at EU and Member State level.

Short Summary

Impact

Set up and operate an EU AI Observatory that delivers robust, transparent indicators and regular sectoral and cross-cutting analysis to monitor AI adoption and socio-economic impacts and to inform EU and Member State policy and sectoral dialogues.

Applicant

Teams with proven capabilities in AI policy analysis, economic and labour-market research, indicator/KPI development, data acquisition and analytics, data visualisation, Drupal web development and UI/UX, accessibility (WCAG), and EU information security/compliance.

Developments

Develop a monitoring framework of up to 15 KPIs with monthly updates where possible, produce recurring sectoral (10/year) and cross-cutting (3/year) reports, run structured sectoral dialogues, and design, host and maintain an interactive Drupal-based Observatory website with data visualisations and downloadable indicators.

Applicant Type

profit SMEs/startups, large corporations, researchers, NGOs/non-profits, and government organizations (economic operators and organisations eligible under EU procurement rules).

Consortium

Open to single tenderers or joint tenders (consortia are permitted and, if used, must appoint a lead and provide a signed group agreement; subcontracting allowed with declaration rules).

Funding Amount

Estimated total contract value €2,500,000 (fixed-price service contract, payments tied to deliverables: 40%/30%/30%).

Countries

Primary focus on EU Member States (EU/EEA and countries with procurement access); benchmarking and comparisons are expected with major regions including the United States, China, India, South Korea, Japan, the United Kingdom, Canada, Brazil, Ukraine and Saudi Arabia.

Industry

Apply AI Strategy (AI governance and sectoral monitoring under the European AI/AI Office policy framework).

Additional Web Data

Opportunity summary

This is an EU procurement tender linked to the Apply AI Strategy, and the European Commission says the AI Observatory will provide robust indicators to assess AI impact in strategic sectors, monitor developments and trends, track labour market effects, and support sectoral discussions and policy decision making.671315

Deadlines:The metadata supplied with this request lists two deadlines, 1 January 2026 at 15:00:59 UTC and 3 November 2026 at 16:00:59 UTC.

What the project is about

The Apply AI Strategy frames the AI Observatory as part of the EU's wider AI governance system, closely connected to the Apply AI Alliance and intended to help coordinate policy actions with real world needs.4613

The published policy material describes the Observatory as a tool to develop key indicators, monitor AI developments and future trends, and assess how AI changes the labour market and the broader economy.615

Eligibility and who can apply

The retrieved official and policy source snippets identify the initiative but do not expose the full eligibility section, so the exact admissibility, consortium, and selection rules cannot be verified from the available evidence here.4613

Applicants should therefore check the tender notice and procurement documents on the official portal for the legal status required, any minimum capacity thresholds, exclusion grounds, and any constraints on single bidders or consortia.

Commercial terms and financing

No contract value, budget ceiling, duration, or grant style funding rate was visible in the retrieved snippets, so those items remain unverified and should be checked directly in the portal notice and tender documents.4613

Because this is a tender, the key financial terms are expected to be the contract value, pricing structure, deliverables, and award method rather than a grant funding intensity.

Key points for applicants

The opportunity is best understood as a policy support and evidence gathering assignment for the Commission, with a strong analytical and sector monitoring component.615

Before bidding, applicants should verify the submission route, lot structure if any, required technical references, staffing requirements, reporting obligations, intellectual property terms, and confidentiality rules.

Summary assessment

This opportunity appears relevant to organisations with strong capability in AI policy analysis, economic and labour market research, indicator development, sectoral consultation support, and EU level advisory work.671315

Based on the available evidence, the main confirmed value proposition is not a grant award but a procurement contract to support the Commission's AI Observatory work under the Apply AI Strategy.4613

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