Procurement Thresholds

Procurement thresholds are statutory contract values that determine which set of rules applies to a public contract. They form the central dividing line of German procurement law: if the estimated contract value reaches or exceeds the threshold, the EU-harmonised above-threshold regime applies; if it falls below, national below-threshold law applies. This split shapes every procurement procedure, from the choice of procedure type and publication obligations to the available legal protection.

In the above-threshold regime (above-threshold procurement) the contract must be advertised EU-wide on TED, the official EU journal. Strict procedural rules from Part 4 of the GWB apply, together with downstream regulations such as the VgV, the Utilities Regulation (SektVO) or the Concessions Regulation (KonzVgV). Bidders here enjoy primary legal protection before the public procurement chambers.

In the below-threshold regime (below-threshold procurement) national rules apply instead: the UVgO for supplies and services and VOB/A Section 1 for construction works, supplemented by the state procurement laws. Procedures are leaner, deadlines shorter and legal protection more limited.

Current EU thresholds 2026/2027

The European Commission reviews the thresholds every two years and adjusts them to reflect exchange-rate movements against the Special Drawing Right under the WTO Government Procurement Agreement (GPA). For the period from 1 January 2026 to 31 December 2027 the following net values apply:

Compared with the previous 2024/2025 cycle, most values were slightly reduced (for example from EUR 5,538,000 to EUR 5,404,000 for works) because the euro had appreciated against the Special Drawing Right. The thresholds for social and special services remained unchanged, as they derive directly from the EU directives rather than the GPA and are not tied to exchange rates. Importantly, the figures are always net values excluding VAT, and the decisive figure is the estimated value at the time the contract notice is sent, not the later tender or award price.

The thresholds are anchored in law on several levels. Nationally, § 106 GWB governs procurement thresholds: paragraph 2 makes a dynamic reference to the EU directives (Article 4 of Directive 2014/24/EU for classical contracting authorities, Article 15 of Directive 2014/25/EU for sector contracting authorities, Article 8 of Directive 2014/23/EU for concessions and Article 8 of Directive 2009/81/EC for the defence sector). The current EU values therefore apply automatically in German law without any need for the legislator to act.

Paragraph 3 obliges the competent federal ministry to publish the applicable thresholds in the Bundesanzeiger (Federal Gazette) without delay after their publication in the Official Journal of the EU. This declaratory announcement provides legal certainty for practitioners.

At EU level, the 2026/2027 values were set by three Delegated Regulations of 22 October 2025: Regulation (EU) 2025/2152 (classical Directive 2014/24/EU), Regulation (EU) 2025/2150 (Utilities Directive 2014/25/EU) and Regulation (EU) 2025/2151 (Concessions Directive 2014/23/EU). They have applied since 1 January 2026.

Whether a contract reaches the threshold is determined by the estimation of the contract value under § 3 VgV. A strict prohibition applies here against splitting a contract with the intention of removing it from the scope of above-threshold law (§ 3(2) VgV). In a division into lots, the values of all lots must in principle be added together (aggregate-value assessment). The details of the calculation are covered by the term threshold calculation.

A university hospital plans to procure consumables for the operating theatre with an estimated annual volume of EUR 280,000 net, tendered as a framework agreement over four years. For the threshold check, the decisive figure is not the annual volume but the total value over the contract term: 4 x EUR 280,000 = EUR 1,120,000. This clearly exceeds the EUR 216,000 threshold for supplies and services. As a public contracting authority, the hospital must therefore tender the contract EU-wide, publish it on TED and run an above-threshold procedure under the VgV.

Consider a different scenario: a municipal administration procures office furniture for EUR 45,000 net. The value is below the threshold, so national below-threshold law (UVgO) applies. Depending on the applicable state-law value limit, the municipality may choose a lean negotiated award or a restricted tender.

For companies the consequence is clear: anyone who only watches the large, EU-wide notices on TED misses most of the market, because the vast majority of public contracts in Germany lie below the thresholds and are published, scattered, across hundreds of regional portals. With Patterno, tenders above and below the thresholds can be monitored across portals in a single profile, so that relevant contracts from both worlds are found automatically.

• Calculating gross instead of net. Thresholds always refer to the estimated net contract value excluding VAT. Those who calculate with gross values reach the wrong conclusions and may assign contracts to the wrong regime.

• Using outdated values. The thresholds change every two years. Anyone still using the 2024/2025 values (for example EUR 5,538,000 for works) has been using outdated figures since 1 January 2026. The current works threshold is EUR 5,404,000.

• Artificially splitting the contract. Splitting a single procurement project into several small contracts in order to stay below the threshold is not permitted under § 3(2) VgV and can lead to the procedure being cancelled.

• Looking only at the annual volume. For framework agreements and recurring services, the total value over the full term (up to four years for framework agreements) must be estimated, not just a single annual amount.

• Confusing the federal and the general threshold. Two different thresholds apply for supplies and services: EUR 140,000 for federal supreme/higher authorities and EUR 216,000 for all other contracting authorities. Confusing them can lead to choosing the wrong procedure.

• Check current values against primary sources. Rely on the announcement in the Bundesanzeiger under § 106(3) GWB or on the EU delegated regulations, not on older leaflets. The current cycle runs until 31 December 2027.

• Document the contract value cleanly. Record the methodology of the contract value estimation in the procurement file, including assumptions on term, options and extensions. This protects against allegations of circumvention.

• Apply the aggregate assessment for lots. When splitting into lots, always add up the values of all lots before determining the regime. Only the total value decides above or below threshold.

• Calculate cautiously just below the threshold. If the estimated value is close to the threshold, plan conservatively and monitor the market. A later overrun can render the procedure unlawful.

• Monitor the market above and below the threshold at the same time. Since most contracts are awarded below the thresholds, bidders should keep an eye not only on TED but also on national portals. A cross-portal search ensures that no relevant tender slips through the net.