What is a Direct Negotiation?
Direct negotiation (German: Freihändige Vergabe) is a procurement procedure below EU thresholds where the authority negotiates directly with one or more companies without the strict formalities of a public tender.
Legal Framework
- Section 12 UVgO: Negotiated award below thresholds
- Section 3(5) VOB/A: Direct negotiation for construction
- State procurement laws: Additional regulations per federal state
Prerequisites
Direct negotiation is only permissible under specific conditions: value limits not exceeded, urgency, specialized services only one company can provide, or unsuccessful prior tender.
Typical Value Limits
| Contract Type | Value Limit | Legal Basis |
|---|---|---|
| Supplies/services (federal) | Up to EUR 25,000 | Section 14 UVgO |
| Construction | Up to EUR 10,000 | Section 3(5) VOB/A |
Process
- Needs assessment
- Market research to identify suitable providers
- Obtaining offers (at least three recommended)
- Negotiation of conditions
- Award decision based on best value
- Documentation
How Patterno Helps
Direct negotiations are increasingly published on procurement platforms. Patterno monitors all relevant platforms and notifies you about these less formal opportunities, which often offer attractive contracts for SMEs.