When EU-wide tendering is required: the threshold values

For contracting authorities and for businesses bidding for such contracts, a great deal turns on a single figure: if the estimated contract value exceeds the threshold, the EU-wide regime applies, with its stricter procedures and deadlines.

How the thresholds are set

The threshold values are reset and published every two years. They differ by contracting entity – a classic contracting authority or a sectoral contracting entity – and by type of contract: works contracts sit considerably higher than supply and service contracts. Below the thresholds, the national regime of the Federal Procurement Act applies, with its own types of procedure.

The estimate is the crux

What matters is the estimated contract value at the time the procedure is initiated, excluding VAT, including options and extensions. For recurring services, the value must be calculated over the full term. Splitting the contract into lots with the aim of falling below the threshold is impermissible – and one of the most common grounds of challenge in review proceedings.

For bidders

Deadlines in procurement law are short and run from the moment of knowledge. Anyone who identifies an unlawful act must raise it promptly; once the contract has been awarded, usually only a claim for damages remains.