A public procurement law reform is particularly important for the necessary investments in infrastructure: after all, the special infrastructure and climate protection fund in particular should quickly reach the projects it is intended for. This is one of the reasons why the Federal Government passed the bill to accelerate public procurement processes. It contains key projects from the coalition agreement and the Federal Government’s immediate action programme.

Public contracts with an annual order volume of many billions of euros are a significant economic factor and provide important investment incentives for companies. Public procurement thus contributes to economic growth. The new law for accelerating public procurement will save administrations and the economy almost 380 million euros a year.

Cost and time savings thanks to fewer processes 

The aim of the law is to make national public procurement law simpler, more flexible, faster and more digital – and these changes will apply to all public procurement in Germany. This will relieve the burden on contracting authorities and companies. It will be easier and more attractive for companies to bid for public contracts.

In addition, the law increases the so-called direct order value limit to 50,000 euros for federal public contracts, which will lead to fewer processes. This is because up to this order value it is not necessary to start a contract award process, which refers to a bidding process between several companies. This saves costs and time. 

Bundled instead of individual – for fast security and infrastructure

The draft bill retains the general principle of lots, because this is good for SMEs and because more companies benefit from public contracts through more tenders. However, the principle also means that many services have to be tendered and awarded individually, even if they belong together. This results in more complex and lengthy processes than if these services were awarded in a combined form.

Where particular speed is now needed – for example, for the special fund’s infrastructure projects or the security authorities’ civil-military defence needs – one so-called general award will therefore suffice in future under certain conditions. These types of exceptions can be made for the security sector until 2030. 

Climate protection for public contracts as well

The draft bill also contains the basis for an ordinance to legally establish lead markets for climate-friendly products.

In addition, the bill provides for fewer obligations to provide evidence, strengthens self-declaration by companies, speeds up review procedures and allows more electronic communication during processes. The law requires the approval of the Bundesrat.

Regulations in public procurement law ensure that companies are treated equally and that the state awards its contracts transparently. This ensures fair competition between the interested companies and prevents corruption and cronyism. Other aspects, such as sustainability or other environmental, social or innovative criteria, can also be regulated. In this way, public procurement can also serve other political objectives.