What is Threshold Calculation?
Threshold calculation determines whether a public contract reaches EU thresholds and thus falls under the stricter above-threshold regime.
Basic Rules
Net value without VAT, estimated before procedure initiation, total value including all options and extensions, based on realistic market prices.
Calculation Methods
One-time contracts use estimated total price. Framework agreements use estimated total of all call-offs. Lease contracts use total payments over duration. Lots use combined total value of all lots.
Prohibition of Circumvention
§ 3(2) VgV prohibits estimating or splitting contracts to circumvent procurement rules. Artificial division of similar services, intentional underestimation, and temporal fragmentation are all prohibited.
Practical Tip
Incorrect threshold calculation can lead to annulment of the entire procedure. Patterno marks tenders by threshold range for quick identification.