Facilitations under public procurement law for war-related procurements

The situation in Ukraine is keeping us with bated breath. Never before have we realised how everything in our modern world is connected like a jigsaw puzzle, and never before have we realised that if one piece of the puzzle is lost, nothing fit anymore. As in every humanitarian, economic, ethical, political and social aspect, procurement is also affected.

How is EU coping with that?

The Federal Ministry of Economics and Technology, in coordination with the Federal Ministry of Construction, has issued guidance for public contracts related to the war in Ukraine (circular dated 13 April 2022, ref. IB6 – 206-000#010).

For agreements with contract values above the EU thresholds, attention is drawn to the possibility of conducting a negotiated procedure without a call for competition.This applies to services that either concern support for Ukraine or for people who have fled from Ukraine.

However, the references also concern contracts insofar as the procurement serves the security of Germany and its allies or the maintenance of service operations in view of the Russian war of aggression against Ukraine. As non-exhaustive examples, the defence against potential attacks in the area of IT and cyber security as well as the safeguarding of civil protection and disaster control, emergency response, health protection and security of supply (including energy supply and in response to disrupted supply chains) are mentioned.

For awards with contract values below the EU thresholds, reference is made to the possibility of direct award. On 13 April 2022, the Federal Cabinet decided on an increase to 8,000 euros (construction contracts) and 5,000 euros (supplies and services) for the federal contracting authorities for a limited period until 31 December 2023, insofar as the (direct) contracts are related to the Russian war of aggression against Ukraine.

Procurement/Tendering proceedings are subject to change due to the conflict in Ukraine. Are you or your business affected by the latest circular and/or situation? Get in touch with us. Our attorneys are specialized in economic and procurement law.