What is a Restricted Tender?
A restricted tender (Beschraenkte Ausschreibung) is a procurement procedure used below the EU thresholds in Germany, in which only a limited number of companies are invited to submit bids. Unlike a public tender (oeffentliche Ausschreibung), where any interested company can participate, the restricted tender involves either a prior public call for participation or a direct invitation of suitable companies by the contracting authority.
There are two variants of the restricted tender. In the first variant, the contracting authority publishes a call for participation, and interested companies must submit an application demonstrating their suitability. The contracting authority then selects qualified candidates and invites them to submit bids. In the second variant, the contracting authority directly identifies and invites companies that it considers suitable, without a prior public announcement. This second variant involves less transparency and competition, and is therefore subject to stricter justification requirements.
The restricted tender is permitted when the nature of the procurement or special circumstances justify limiting the pool of bidders. Typical justifications include the need for specialized expertise that only a limited number of companies possess, urgency that does not allow for a full public tender, or when the expected contract value is below specific thresholds where a public tender would be disproportionate.
Why It Matters for Bidders
For bidders, the restricted tender presents both opportunities and challenges. Being invited to a restricted tender typically means less competition, increasing the probability of winning the contract. However, companies not on the contracting authority's radar may miss out on opportunities entirely, making proactive market presence and relationship building with contracting authorities particularly important.
Companies that wish to be considered for restricted tenders should ensure they are registered on relevant procurement portals, maintain an up-to-date AVPQ prequalification, and actively monitor calls for participation. Building a track record of successful contract performance also increases the likelihood of future direct invitations.
Legal Framework
The restricted tender is governed by the UVgO (Sections 10 and 11) for supply and service contracts below the EU thresholds. For construction works, VOB/A Section 1 Paragraph 3 contains the relevant provisions. The procedure has no direct equivalent above the EU thresholds, where the restricted procedure (nicht-offenes Verfahren) under the VgV applies instead.