For companies bidding for public contracts in Germany, the rules of the game have changed since 1 July 2026. New legislation (Vergabebeschleunigungsgesetz) is intended to simplify, digitalize and speed up procurement procedures. This development creates opportunities for French companies doing business in Germany. At the same time, access to smaller public contracts is becoming more difficult, as these contracts may now be awarded more frequently without prior publication.
Key points
The new legislation, which aims to accelerate the award of public contracts, was promulgated on 12 May 2026 and entered into force on 1 July 2026. It forms the centerpiece of Germany’s most wide-ranging public procurement law reform since 2016. It is complemented by legislation to accelerate procurement for the German army and by federal legislation on compliance with collective agreements. The German Federal Government expects annual savings for businesses and public administration of more than €380 million.
Which rules apply: the EU thresholds
To clarify the context, the rules that apply depend on the estimated value of the contract. Where that value reaches or exceeds the EU financial thresholds applicable to public procurement, the European directives on public procurement apply. In Germany, they are implemented mainly through the act against restraints of competition and the procurement regulations. Below these thresholds, national rules apply, in particular the German regulation governing the award of contracts below the EU thresholds. The new legislation changes the rules in both areas, although not every provision applies in the same way to every public buyer.
The EU thresholds are adjusted every two years by the European Commission. Since 1 January 2026, they have been €216,000 for supplies and services procured by sub-central public buyers and €140,000 for the highest and higher federal authorities. For works contracts, the threshold is €5,404,000. These amounts are based on Delegated Regulations (EU) 2025/2150, 2025/2151 and 2025/2152. This distinction is important for companies because it determines not only the applicable procedure, but also the relevant legal remedies and documentary requirements.
A higher threshold for direct awards
The change with the greatest practical impact concerns supplies and services procured by the Federal Government: contracts with a net value of up to €50,000 may now be awarded directly without a formal procurement procedure. The ordinary threshold under § 14 UVgO was previously €1,000. Temporary administrative rules had recently raised it provisionally to €15,000. For bidders, this development is a double-edged sword. Up to €50,000, the public buyer is not required to publish an open procedure. It may approach a supplier it already knows directly, without an international company or another external supplier even becoming aware of the requirement. Companies active in this segment should therefore do more than monitor public procurement platforms. They should actively build relationships with German municipalities, authorities and other public bodies responsible for awarding contracts. The new threshold does not automatically guarantee an award, but it does change access to the market.
Less paperwork when submitting tenders
Companies bidding for contracts will be able to rely more frequently on self-declarations instead of submitting all supporting documents with their tender. This will make it easier for French companies to participate, particularly where commercial register extracts, references or financial documents first have to be obtained and, where necessary, translated. The substantive requirements remain unchanged. Turnover, technical capacity, references and professional reliability must still be demonstrated. A self-declaration replaces the supporting evidence only provisionally. At the latest when the contract is awarded or as part of a review, the company must be able to substantiate the information provided. Companies relying on self-declarations should therefore prepare their complete documentation internally in advance, including German-language versions where the procurement documents require them.
A faster route to legal remedies, but with limits
Proceedings before public procurement review chambers are increasingly being conducted digitally. Since 1 July 2026, applications for review may also be filed electronically. Access to and transmission of the case file, as well as hearings, may take place online. This can save time, but it does not replace careful legal and technical preparation.
In certain situations, however, the legal remedies available to bidders are limited. An immediate appeal against a review chamber’s decision rejecting an application no longer automatically has suspensive effect. In some circumstances, the public buyer may therefore award the contract even though the second-instance court has not yet ruled.
For unsuccessful bidders, it is becoming even more important to raise any identifiable errors immediately and to prepare applications for review without delay. A response only after lengthy internal discussions with the foreign parent company may result in valuable time being lost.
Single-lot awards for major infrastructure projects
For infrastructure projects financed by the special fund for infrastructure and climate neutrality (Sondervermögen Infrastruktur und Klimaneutralität), the contract may now be awarded as a single lot where scheduling requirements justify this approach. This option is available where the estimated contract value reaches or exceeds 2.5 times the applicable EU financial threshold. Several specialist or partial lots may then be entrusted to a single contractor instead of dividing the project into separate lots.
This is an exception to the principle of awarding contracts in separate lots. That principle is intended to secure small and medium-sized enterprises’ access to public contracts. The new rule may therefore benefit general contractors in particular and put smaller or regional suppliers under pressure. For French companies involved in major infrastructure projects, it may be strategically sensible to position themselves as members of a consortium or as subcontractors where submitting an independent tender offers little prospect of success because of the single-lot award.