What is a Direct Award?
A direct award (German: Direktvergabe) is the simplest form of public procurement. The authority commissions a company directly without a formal procedure, permissible only for very low contract values.
Legal Framework
- Section 14 UVgO: Direct award for supplies and services
- Section 3(5) No. 1 VOB/A: Direct award for construction
- State procurement laws: Varying regulations per federal state
Value Limits
| Legal Basis | Contract Type | Value Limit |
|---|---|---|
| Section 14 UVgO | Supplies/services (federal) | Up to EUR 1,000 |
| VOB/A | Construction | Up to EUR 3,000 |
Requirements
Despite the simplified procedure, fundamental principles must be observed: reasonable pricing, economic use of funds, no artificial splitting of contracts to stay below thresholds, and minimum documentation.
Splitting Prohibition
Artificially dividing contracts to stay below direct award thresholds is prohibited and can result in procurement law and disciplinary consequences.
How Patterno Helps
While direct awards are rarely published, Patterno helps you find the larger procurement procedures that often grow from direct awards – recognizing these opportunities early.