Procurement procedures

By Sebastian LöfflerLegal status: 6 August 2026Reading time: 4 minutes
Contents of this page
  1. The procedures at a glance
  2. Below the thresholds
  3. Articles

The procedure a contracting authority chooses determines how you can win the contract in the first place: whether you can apply directly, whether there is a competitive call for participation, whether there are negotiations and how much time you have. Above the EU thresholds, the procedures are governed by the Act against Restraints of Competition (GWB) and the Public Procurement Regulation (VgV). Below them, the Sub-threshold Procurement Regulation (UVgO) and state law apply.

The procedures at a glance

Above the thresholds, Section 119 GWB gives the contracting authority a choice of five types of procedure. Two of them are freely available, the others only under conditions that the authority must justify.

ProcedureFreely selectableWhat it means for you as a bidder
Open procedureYesAny company may submit a tender, no competitive call for participation
Restricted procedureYesFirst a competitive call for participation, then selected companies are invited to submit tenders
Negotiated procedureOnly with a reasonThe content of the tender is discussed, often over several rounds
Competitive dialogueOnly with a reasonThe solution is developed jointly before tenders are submitted
Innovation partnershipOnly with a reasonDevelopment and subsequent purchase in one procedure
What this means in practiceAround nine out of ten awards above the threshold are run as open or restricted procedures. If you see a negotiated procedure without a competitive call for participation, it is worth a second look: for this, the contracting authority needs one of the narrow grounds under Section 14(4) VgV, for example that only one company can provide the service.

Below the thresholds

Different names and different rules apply here. The open procedure becomes the public invitation to tender (öffentliche Ausschreibung), the restricted procedure becomes the restricted invitation to tender (beschränkte Ausschreibung). In addition, there are the negotiated award (Verhandlungsvergabe) and the direct award (Direktauftrag). How much leeway the contracting authority has depends on the contract value and on whether construction works are involved.

Since 1 January 2026, considerably higher value limits than before apply to construction works. The restricted invitation to tender without a competitive call for participation is possible up to €150,000 across the board, the award by negotiation (freihändige Vergabe) up to €100,000 and the direct award up to €50,000, all net.

Articles on the individual procedures

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Sources
  1. Act against Restraints of Competition (GWB), Part 4. gesetze-im-internet.de
  2. Public Procurement Regulation (VgV). gesetze-im-internet.de
  3. Act to Accelerate the Award of Public Contracts of 12 May 2026, Federal Law Gazette (BGBl.) 2026 I No. 137. Legal text
  4. Notice of the Federal Ministry for Housing, Urban Development and Building (BMWSB) amending the Construction Contract Procedures (VOB/A) of 24 November 2025, Federal Gazette (BAnz AT) 16 December 2025 B7.
NoteThis article provides general information and does not constitute legal advice. In individual cases, you should seek expert advice. We review this page regularly to keep it up to date. You will find the legal status at the top.