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Public Procurement Law

Body of legal rules governing how public authorities must award contracts to companies.

What is Public Procurement Law?

Public procurement law (German: Vergaberecht) comprises all legal rules governing how public authorities must award contracts for works, supplies, and services to companies. Its purpose is to ensure transparent, non-discriminatory competition for public contracts.

Legal Framework in Germany

German procurement law has a two-tier structure:

Above EU thresholds:

  • GWB Part 4 (§§ 97–184) – Fundamentals and legal remedies
  • VgV – Procurement regulation for supplies and services
  • VOB/A Section 2 – Construction contracts above EU threshold
  • SektVO – Utilities regulation (water, energy, transport)

Below EU thresholds:

  • UVgO – Sub-threshold procurement regulation
  • VOB/A Section 1 – Construction contracts below EU threshold
  • State procurement laws

EU Directives

German procurement law is based on three key EU directives:

  • 2014/24/EU – Classic procurement directive
  • 2014/25/EU – Utilities directive
  • 2014/23/EU – Concessions directive

Core Principles

The five procurement principles under § 97 GWB:

  1. Competition – Sufficient competition must be ensured
  2. Transparency – Procedures must be documented and traceable
  3. Equal treatment – All bidders must be treated equally
  4. Proportionality – Requirements must be appropriate
  5. Value for money – Award to the most economically advantageous tender

Legal Remedies

Companies that feel disadvantaged can challenge procurement decisions:

  • Review body (Vergabekammer) – First instance for review applications
  • Higher Regional Court (OLG) – Appeals against review body decisions

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