Search
Contact
30.06.2021 | KPMG Law Insights

Know the right threshold for contract award! Assistance published for federal level

Know the right threshold for contract award! Assistance published for federal level

The rules for awarding public contracts depend in particular on the respective estimated net value of the individual contract to be awarded. The thresholds above which Europe-wide tendering is mandatory play a decisive role in this context. The level of the thresholds is reviewed by the EU Commission every two years and usually adjusted in the process.

While the threshold value for the award of works and concessions is currently a uniform €5,548,000 (since 01.01.2018), there are several regulated threshold values for the award of supplies and services. The latter depend partly on what type of supply or service contract is to be awarded, partly on what type of contracting authority awards the supply or service contract. Simplified and in overview, the following thresholds currently apply (since 01.01.2018) in the area of supply and service contracts:

  • Supply and service contracts of the highest and upper federal authorities and comparable federal institutions (Section 106 (2) No. 1 GWB in conjunction with Art. 4 of Directive 2014/24/EU): € 144,000
  • Supply and service contracts awarded by other contracting authorities: €221,000
  • Supply and service contracts from sector contractors and in the area of defense and security: €443,000
  • Contracts for social and other special services within the meaning of Section 130 GWB from sector contracting authorities: € 1,000,000
  • Contracts for social and other special services within the meaning of Section 130 GWB from other contracting authorities: € 750,000

The German Federal Ministry for Economic Affairs and Energy has published a “Guidance Document for the Examination of the Applicable EU Threshold Value in the Award of Public Contracts” in the Federal Gazette. The notice contains a list of the supreme and upper federal authorities and the comparable institutions pursuant to section 106 para. 2 No. 1 GWB (source: BAnz. AT 01.07.2019 B1).

Conclusion

Know your threshold! Note the various applicable thresholds in the area of supply and service contracting.

Appetite for awarding? Visit our contracting service 360. Premium procurement for the public sector.

Explore #more

06.05.2025 | KPMG Law Insights

Social insurance obligation for teachers – transitional rule creates clarity

Teachers and lecturers are often hired on a self-employed basis. This practice makes the German pension insurance fund sit up and take notice. It is…

29.04.2025 | KPMG Law Insights

Anti-money laundering and transparency register – what will the new government change?

According to the coalition agreement, the future government wants to “resolutely combat” money laundering and financial crime. The coalition partners have announced that legal…

25.04.2025 | KPMG Law Insights

Coalition agreement: The plans for supply chain law, EUDR and GTC law

In the coalition agreement, the CDU/CSU and SPD agreed: “We will also abolish the National Supply Chain Due Diligence Act (LkSG).” At first glance,…

23.04.2025 | KPMG Law Insights

Climate protection and sustainability in the 2025 coalition agreement

Climate protection has achieved a level of importance in the coalition agreement that was not expected. It had not played a significant role in the…

17.04.2025 | KPMG Law Insights

What the coalition agreement means for the financial sector

The coalition agreement between the CDU/CSU and SPD also has an impact on the financial sector. Here is an overview. Increasing the energy supply The…

17.04.2025 | KPMG Law Insights

AWG amendment provides for tougher penalties for sanction violations

Due to the ongoing Russian war of aggression against Ukraine, the EU wants to make it easier to prosecute violations of EU sanctions. The corresponding…

16.04.2025 | KPMG Law Insights

What the new digitization plans in the coalition agreement mean

The coalition agreement shows how the future government wants to shape Germany’s digital future. What do the plans mean for companies in concrete terms? Here…

14.04.2025 | KPMG Law Insights

How the new coalition wants to accelerate investment in infrastructure

The coalition agreement between the CDU/CSU and SPD marks a fundamental new beginning in German infrastructure policy. In view of a considerable investment backlog, the…

14.04.2025 | KPMG Law Insights

Coalition agreement 2025 and NKWS: Booster for environmental and planning law?

In the current coalition agreement, environmental and planning law is mentioned at various points throughout the coalition agreement, highlighting its great importance. However, the…

11.04.2025 | KPMG Law Insights

What’s next for foreign trade? The plans in the 2025 coalition agreement

Foreign trade and foreign trade have become particularly explosive in view of the new US tariffs. The CDU/CSU and SPD have agreed on the following…

Contact

Henrik-Christian Baumann

Partner
Berlin Site Manager
Specialist lawyer for public procurement law
Specialist lawyer for information technology law

Heidestraße 58
10557 Berlin

Tel.: +49 30 530199129
henrikbaumann@kpmg-law.com

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll