
Reform of the Law on Procurement Below the Threshold: Seizing Opportunities, Addressing Weaknesses
The draft revision of the Subthreshold Procurement Regulation (UVgO) is intended to speed up and simplify public procurement. It includes important measures for faster and more digital procurement procedures. However, for this to result in genuine simplification for bidders, greater uniformity, transparent competitive conditions, and reliable legal protection are needed. Recommendations on this matter are included in the BDI’s statement the draft revision of the Sub-Threshold Procurement Regulation (UVgO).
The reform speeds up the process but does not resolve key structural problems
The draft reduces the number of provisions from 54 to 24 sections and aims to streamline procedures. The BDI particularly welcomes the stronger focus on efficiency, digital procedures, and reduced procedural complexity.
At the same time, the fundamental problem with Germany’s sub-threshold procurement law remains. The Sub-Threshold Procurement Regulation remains binding only where the federal government or the states mandate its application. For companies operating nationwide, this leads to varying requirements and additional administrative burdens because the states have their own regulations. The BDI therefore calls for a uniform and binding application of the Sub-Threshold Procurement Regulation nationwide. Harmonization increases legal certainty and makes it easier for companies to participate in public procurement procedures.
Added to this is the continuing lack of uniform legal protection in the subthreshold sector. Depending on the federal state, the options for having procurement violations reviewed vary. From the industry’s perspective, this hinders the consistent enforcement of procurement law and creates uncertainty for bidders.
Competition and market access must not be weakened
Several reform proposals aim to speed up procurement. These include higher value thresholds for direct awards and an expansion of negotiated awards without competitive bidding. The BDI acknowledges the potential of these instruments to accelerate the process but warns against a further restriction of competition.
The industry is particularly critical of the planned simplification of public-public cooperation under Section 1(4). The proposed changes facilitate in-house awards and intermunicipal cooperation. As a result, additional public contracts could be awarded without a competitive bidding process. Startups and small and medium-sized enterprises, in particular, would consequently have less access to procurement opportunities.
Similar risks arise from the significant expansion of negotiated awards without competitive bidding. The proposed threshold of 100,000 euros, as well as additional exceptions, significantly expand the leeway available to public contracting authorities. Without a public notice, the pool of potential bidders remains limited to selected companies. From the industry’s perspective, the proposed increase in flexibility therefore requires effective safeguards for competition and transparency.
Digitalization and Standardization Strengthen Public Procurement
A key focus of the draft is the electronic conduct of procurement procedures. The BDI supports this approach but considers the proposed regulations insufficiently ambitious to harmonize the heterogeneous administrative landscape. Public procurement requires comprehensive digitization and greater standardization of procedures.
The BDI views positively the creation of a central portal for companies to access all procurement procedures in both the above-threshold and below-threshold sectors via the “Marktplatz Deutschland” platform, which is currently under development. Key factors here are standardized data formats, barrier-free accessibility, and fully digital processes.
AI-supported procedures also offer opportunities for more efficient contracting. This requires clear rules on data protection, liability, and compliance with the European AI Regulation. At the same time, further development should be closely coordinated with the business community to ensure that new systems remain practical and to avoid additional burdens.
Fewer documentation requirements increase business participation
The draft contains several provisions that significantly reduce the burden on companies. These include giving priority to self-declarations, the “once-only” principle, and the option to request supporting documents only from promising bidders. These changes put the new and welcome principle of efficiency into practice.
From the BDI’s perspective, however, there is still room for improvement. The “once-only” principle loses its effectiveness if contracting authorities can request additional documents at any time. Furthermore, digital procedures should enable the automated retrieval of existing supporting documentation. Proportionate requirements regarding revenue, references, or company size are particularly important for startups and small and medium-sized enterprises to ensure that public tenders remain genuinely open to new bidders.
Reform der Unterschwellenvergabeordnung: Vereinfachung braucht mehr Einheitlichkeit
Die Reform der Unterschwellenvergabeordnung (UVgO) enthält wichtige Ansätze für schnellere und digitalere Vergabeverfahren. Damit daraus eine echte Vereinfachung entsteht, braucht es jedoch mehr Einheitlichkeit, transparente Wettbewerbsbedingungen und einen verlässlichen Rechtsschutz. Details und Empfehlungen dazu enthält die Stellungnahme des BDI zum Entwurf einer Neufassung der Unterschwellenvergabeordnung (UVgO).
