The EU public procurement law governs how public authorities and entities purchase goods, services, and works to ensure transparency, fairness, and competition. In Germany, these rules are implemented through national legislation that aligns with EU directives.
1. Legal Framework
The EU procurement law is mainly based on three key Directives:
- Directive 2014/24/EU (Public Sector Directive)
- Directive 2014/25/EU (Utilities Directive)
- Directive 2014/23/EU (Concessions Directive)
Germany has transposed these directives into national law, primarily through:
- Gesetz gegen Wettbewerbsbeschränkungen (GWB, Part 4) – Governs public procurement principles.
- Vergabeverordnung (VgV) – Regulates procurement procedures.
- Sector-specific regulations, such as the VOB/A (construction contracts) and UVgO (sub-threshold procurement for supplies and services).
2. Scope and Thresholds
EU rules apply when contract values exceed specific thresholds (adjusted biennially). As of 2024:
- Public supply & service contracts: €215,000
- Public works contracts: €5,382,000
- Utilities sector: €431,000
Below these thresholds, national rules (e.g., UVgO) apply, but general principles like transparency and non-discrimination remain relevant.
3. Procurement Procedures
German contracting authorities must use transparent and competitive procedures:
- Open Procedure (Offenes Verfahren) – Any company can submit a bid.
- Restricted Procedure (Nicht offenes Verfahren) – Only selected bidders may submit offers.
- Negotiated Procedure (Verhandlungsverfahren) – More flexible, used for complex contracts.
- Competitive Dialogue (Wettbewerblicher Dialog) – Applied for innovative or complex projects.
4. Key Principles
German and EU procurement law are based on:
- Non-discrimination – Equal treatment of EU economic operators.
- Transparency – Clear tender requirements and fair evaluation.
- Proportionality – Procurement requirements must be appropriate.
- Competition – Prevents unfair market restrictions.
5. Legal Remedies & Review
The Vergabekammern (Public Procurement Tribunals) handle disputes at the federal and state level. Companies can challenge procurement decisions based on:
- Lack of transparency
- Discriminatory conditions
- Procedural errors
Appeals can be escalated to higher administrative courts (Oberlandesgerichte).
6. Special Considerations
- Sustainability & Social Criteria – Public contracts increasingly include environmental and social requirements (e.g., Green Public Procurement).
- Digital Procurement – The use of electronic platforms (eVergabe) is mandatory for larger contracts.
- Exemptions – Certain public contracts (e.g., defense, in-house procurement) have specific exemptions.
Conclusion
Germany’s public procurement system strictly follows EU law, ensuring open markets and legal compliance. Authorities must balance competition, efficiency, and legal safeguards, making procurement law a complex yet crucial regulatory area.