What are EU Procurement Thresholds?
EU procurement thresholds (Schwellenwerte) are the financial limits that determine whether a public contract must be awarded according to the strict EU-wide procurement rules or whether less formal national below-threshold rules apply. When the estimated contract value equals or exceeds the applicable threshold, the full EU procurement regime applies, requiring publication on TED, adherence to minimum deadlines, and compliance with the detailed procedural requirements of the VgV, SektVO, or KonzVgV. Below the thresholds, national rules such as the UVgO or VOB/A Section 1 apply.
The thresholds are set by the European Commission every two years through delegated regulations, based on the international commitments of the EU under the WTO Government Procurement Agreement (GPA). Different thresholds apply depending on the type of contract and the type of contracting authority. Generally, central government authorities have lower thresholds than sub-central authorities, and works contracts have significantly higher thresholds than supply or service contracts.
The determination of whether a procurement reaches the threshold is based on the estimated contract value excluding VAT, calculated at the time the procurement is initiated. Contracting authorities must not artificially split contracts to avoid reaching the threshold, and for framework agreements, the aggregate value of all anticipated call-offs over the full duration must be considered. Where a procurement is divided into lots, the values of all lots must be aggregated for the threshold calculation.
Why It Matters for Bidders
The threshold system has profound implications for bidders. Above the thresholds, bidders benefit from stronger procedural protections, mandatory EU-wide publication ensuring broader access to opportunities, minimum deadlines providing adequate time for bid preparation, and access to the Vergabekammer review system for challenging procurement decisions. Below the thresholds, these protections are significantly reduced.
Bidders should monitor threshold values, as they are updated biennially and changes can shift contracts between the above-threshold and below-threshold regimes. Understanding the threshold system also helps bidders assess whether a contracting authority has correctly applied the procurement rules, which can be a basis for challenge if the wrong regime was applied.
Legal Framework
The thresholds are established by EU Commission Delegated Regulations and published in the Official Journal of the European Union. In Germany, they are implemented through Section 106 GWB and the respective regulations (VgV, SektVO, KonzVgV). The Federal Ministry for Economic Affairs publishes the applicable thresholds in the Federal Gazette. The current thresholds are valid for the period 2024-2025 and will be revised for 2026-2027.