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Procurement Procedures

Combined Award

Award of a contract as a whole without lot division – only permissible for economic or technical reasons.

What is a Combined Award?

A combined award (German: Gesamtvergabe) occurs when a contracting authority awards a contract as a whole without dividing it into lots. It is the exception in German procurement law.

Legal Basis

  • § 97(4) sentence 3 GWB: Lots may be combined only when economic or technical reasons require it
  • § 5(2) VOB/A: Trade lot division is the default for construction
  • Art. 46(4) Directive 2014/24/EU: Justification required for non-division

Requirements

Economic reasons: Significant quantified cost savings, risk allocation, project management benefits.

Technical reasons: Inseparable technical dependencies, system integration, safety requirements.

Insufficient Justifications

Administrative simplification, general interface problem claims, desire for a single contact point, general time pressure, or lack of experience with lot division.

Documentation

Reasons must be documented in the procurement report. Retroactive justification is not accepted.

Impact on Competition

Combined awards significantly reduce the bidder pool, typically excluding SMEs and leading to higher prices with less competition.

Legal Protection

Bidders excluded by unlawful combined awards can file complaints and review applications. The procurement chamber may order lot division.

Practical Tip

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