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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.

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Specialist lawyer for public procurement law
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henrikbaumann@kpmg-law.com

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