What are the Below-Threshold Procurement Rules (UVgO)?
The Below-Threshold Procurement Rules (Unterschwellenvergabeordnung, UVgO) is the German regulation that governs the procurement of supplies and services with an estimated value below the EU thresholds. It replaced the former VOL/A Section 1 in 2017 and provides a modernized framework that balances the need for competitive and transparent procurement with the administrative efficiency required for lower-value contracts.
The UVgO establishes a graduated system of procurement procedures scaled to contract value and complexity. The available procedures include the public tender (oeffentliche Ausschreibung), which corresponds to the open procedure above the thresholds; the restricted tender (beschraenkte Ausschreibung) with or without a public call for participation; the negotiated award (Verhandlungsvergabe) with or without a public call; and the direct award (Direktvergabe) for very low-value contracts. The contracting authority selects the appropriate procedure based on the contract value, the nature of the procurement, and the market conditions.
While the UVgO shares many principles with above-threshold procurement, including transparency, equal treatment, and competition, it provides significantly more flexibility. Minimum deadlines are shorter, procedural requirements are less prescriptive, and contracting authorities have greater discretion in structuring their procurement processes. Importantly, the full legal protection system available above the thresholds (Vergabekammer review) is not available for UVgO procurement; aggrieved bidders must generally rely on ordinary civil courts, which provide less specialized and typically slower adjudication.
Why It Matters for Bidders
Below-threshold procurement represents a substantial share of total public procurement volume, particularly for small and medium-sized enterprises. The UVgO governs the procurement of everyday supplies and services by federal, state, and municipal authorities. Companies that focus exclusively on above-threshold opportunities miss a significant portion of the market.
However, bidders should be aware that the reduced procedural protections under the UVgO mean they have fewer legal remedies if they believe procurement rules have been violated. The absence of access to the Vergabekammer review system makes it more difficult and costly to challenge below-threshold procurement decisions.
Legal Framework
The UVgO was adopted in 2017 by the Federal Government and applies to federal procurement. Most German states have adopted the UVgO for their own procurement through administrative orders. The UVgO derives its authority from budgetary law rather than the GWB, which only applies above the EU thresholds. For construction works below the thresholds, VOB/A Section 1 continues to apply rather than the UVgO.