The Federal Procurement Act (Bundesvergabegesetz) regulates the procurement of supplies, works and services by the public sector as well as by certain public companies and companies that provide defined services in the public interest. This applies irrespective of the volume of these contracts, i.e. both above and below the thresholds of the EU Public Procurement Directives (so-called upper and lower threshold range). 

Which provisions apply in a specific award procedure depends, among other things, on whether the respective contract falls under the upper or lower threshold range. It is crucial that simplified award procedures are permissible within the defined lower threshold range. 

To delineate between procurements in the upper and lower threshold range, the European Commission has set threshold values by regulation. What determines whether a procurement is assigned to the upper or lower threshold range is the estimated value of the contract. 

In addition to these “European” thresholds for the delimitation between the upper and lower threshold ranges, the Federal Procurement Act has also set its own national thresholds for the lower threshold range, which regulate the admissibility of various (simplified) award procedures in the lower threshold range. In addition, the legislator has increased these thresholds in recent years by issuing or extending threshold regulations and thus ensured further simplifications in the sub-threshold area. 

Just in time before the turn of the year, the legislature extended the Threshold Regulation – originally limited until 31 December 2023 – for two more years until 31 December 2025; as a result, higher thresholds will continue to apply in the lower threshold range for award procedures initiated during this period. 

In particular, contracting authorities will once again be able to award contracts worth less than EUR 100,000,-- (instead of EUR 50,000,--) directly to suitable companies without having to conduct an award procedure.

Additional choices of procedures in the sub-threshold area:

Classic Regime

Works Contracts 

Supply and Service Contracts

Sector Regime

Works Contracts 

Supply and Service Contracts