The Procurement Acceleration Act changes access to Bundeswehr contracts

The Planning and Procurement Acceleration Act, which came into force on February 14, 2026, is intended to significantly accelerate Bundeswehr procurement by allowing deviations from the usual procurement rules. This will allow the Bundeswehr to award contracts more flexibly. Material, infrastructure and capacities should be available more quickly so that the Bundeswehr can be deployed more quickly.

For companies wishing to participate in Bundeswehr procurement procedures, the decisive factor is no longer just which bid they submit, but whether they are structurally eligible as a supplier at all.

New opportunities for companies, but also higher compliance requirements

For companies, the law opens up new opportunities in the defense market, particularly for defense, IT and security-related supplier industries. However, companies wishing to participate in military procurement procedures must also comply with complex regulatory requirements, security requirements and export control regulations.

In addition to procurement law issues, product safety, technology classification and the protection of sensitive data are also becoming increasingly important. The desired diversification of supply chains means that companies must align their organizational and legal structures more closely with the needs of the Bundeswehr.

The law is temporary – companies require flexibility

The Procurement Acceleration Act is limited until December 31, 2035, and individual provisions only apply until December 31, 2030. Companies that want to make use of the additional leeway must adapt their processes at short notice and possibly change them again if the law is not extended after this test period.

To which contracts does the BwBBG apply – and how does it relate to the VSVgV?

The BwBBG applies to all public contracts to cover the needs of the Bundeswehr, regardless of whether they are military, security-specific or dual-use goods. As soon as a dual-use product is procured for the Bundeswehr, the award falls within the scope of the Act. The mere shared use of infrastructure, such as roads, does not count as a Bundeswehr procurement measure.

In principle, the law applies to contracts above the EU thresholds. The administration may also use individual acceleration instruments below these thresholds. The Defense and Security Procurement Ordinance (VSVgV) takes a back seat in the scope of application of the BwBBG as a special law and only applies as a supplement where no specific regulation exists.

How does the law actually speed up procurement procedures?

The Procurement Acceleration Act provides for a bundle of acceleration measures along the entire procurement process. These are intended to shorten the time-to-contract and time-to-capability and also make procurements more effective overall.

Focus on market-available solutions and early opening of proceedings

A central starting point is a stronger focus on market-available solutions. Contracting authorities should make more intensive use of market surveys and consider existing offers more systematically. Under certain conditions, award procedures can be initiated before a final funding commitment has been made. This allows preparatory steps to be brought forward and time-critical projects to be started earlier.

Deviation from the principle of awarding lots for time-critical procurements

The law allows temporary deviations from the principle of awarding contracts in lots. In time-critical cases, integrated overall awards can be carried out without the otherwise necessary justification effort. Coordination and interface costs are reduced, which can lead to faster processes. At the same time, this form of awarding contracts can affect the market opportunities of small and medium-sized companies in particular.

Shortened procedures and direct awards in urgent situations

The law provides for further acceleration options for justified urgent situations. These include shortened procedures, negotiated procedures without a call for competition and interim awards. The services must remain limited to what is absolutely necessary. This limitation in particular is a central point of review in subsequent review procedures.

Budgetary relief through advance payments

In addition, budgetary adjustments facilitate advance payments by the public sector. Advance payments can help to build capacity or strengthen competition. For companies, this means additional liquidity. At the same time, however, the requirements for collateral and balanced risk sharing between client and contractor are increasing.

Documentation remains mandatory despite acceleration

With the exception of the deviation from the awarding of lots, all of the acceleration criteria have in common that they require a documented exercise of discretion. If such documentation is missing, there is a risk of audits under public procurement law and complaints under budgetary law. Despite the intended acceleration, the proper justification of decisions therefore remains a key risk factor for contracting authorities and, indirectly, for companies.

Location, supply chains and proof of origin can determine participation in the award procedure

Companies are increasingly faced with the question of whether they are even structurally eligible to bid for Bundeswehr contracts. The Procurement Acceleration Act strengthens the ability of contracting authorities to award contracts differently for reasons of national security than is usually the case under public procurement law. Security interests can take precedence over the usual procurement rules, for example to ensure security of supply or in the production of weapons, ammunition and key security-relevant technologies. In such cases, contracting authorities may make use of exemptions if this is necessary to safeguard national security. For companies, this means that procurement procedures do not always follow the familiar standard rules and conditions of participation may be more strongly influenced by security law.

This is particularly relevant when dealing with tenders from third countries. According to Section 11 BwBBG, contracting authorities can restrict participation in procurement procedures to companies based in the EU or EEA and require certain EU origin shares. As a result, questions of vertical integration, production locations and the involvement of subcontractors are becoming the focus of scrutiny under public procurement law.

For companies wishing to participate in Bundeswehr contracts, this means that it is not only price and performance that are decisive, but increasingly also the company’s own corporate structure. The headquarters, supply chain, origin of key components and the contractual involvement of subcontractors must be designed and documented in such a way that they meet the security requirements of the client.

What does the acceleration of review procedures mean for companies?

The right of review will also be accelerated. The Federal Procurement Chamber decides more frequently on the basis of the files, deadlines are shortened and appeals no longer automatically have suspensive effect. Awards can therefore be made despite ongoing review proceedings. Sanctions or contract curtailments are increasingly replacing the prevention of contract awards. For companies, the focus of legal protection is thus shifting towards the risk of damages and settlement scenarios.

How should companies act now?

There are three key areas of action for companies:

1. Early market positioning is becoming increasingly important, as market explorations are increasingly becoming an access channel. Companies should provide reference-capable information, innovation concepts and reliable statements on supply and production capacities without exceeding the limits of preliminary consultation under public procurement law.

2. Third country and supply chain compliance are becoming strategic parameters. Headquarters, ownership structure, vertical integration and subcontractor chains should be documented in such a way that requirements for EU anchoring and third country filters can be met.

3. Companies should adapt their contracts and processes. Advance performance, update, adjustment and penalty clauses should be integrated into standard models. In addition, mechanisms for price, performance and capacity adjustments as well as active complaint and deadline management are required.