Public contracts are attractive to companies – if the terms are right
Whether it’s laptops, cleaning services, or even an entire building: public contracting authorities at the federal, state, and local levels procure goods, services, and construction work to carry out their respective responsibilities. This presents an opportunity for German industry to offer its services.
The Economic Value
Public procurement is a significant economic factor. The total annual volume of public procurement in Germany is estimated at approximately 400 billion euros. In the EU single market, it amounts to as much as approximately 2 trillion euros. The entire process is governed by public procurement law.
What remains to be done?
When awarding public contracts, contracting authorities must comply with a wide range of requirements designed to ensure transparent and non-discriminatory competitive bidding. While much of the process runs smoothly, from the perspective of the bidding industry, there is still room for improvement in some areas—even following the reform of public procurement law. This includes, in particular, the long-overdue introduction of effective legal protection for contracts below the EU thresholds, as well as the abolition of state procurement laws and state laws requiring compliance with collective bargaining agreements. With their divergent regulations, the latter complicate participation in procurement procedures for companies operating nationwide. This applies in particular to small and medium-sized enterprises as well as startups.
