Out-Law News Lesedauer: 1 Min.
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15 Aug 2025, 11:55 am
Germany is poised to overhaul its public procurement framework with the introduction of the Procurement Acceleration Act; a legislative reform aimed at simplifying and speeding up procurement procedures above EU thresholds.
Dr Lars Hettich, procurement expert at Pinsent Masons, was commenting following the publication the reforms which make changes to the German Act against Restraints of Competition (GWB), Regulation on the Award of Public Contracts (VgV), the Sector Ordinance (SektVO), the Concessions Award Regulation (KonzVgV), and the Procurement Regulation for Security and Defence (VSVgV). The introduction, as set out in the coalition agreement, states that public procurement must become "simpler, faster, and more flexible".
Hettich said: “The draft bill is one of a number of legislative initiatives to reform public procurement law with the goal of making public procurement less bureaucratic and thus faster. Some amendments have been under discussion for a long time and their implementation is to be welcomed, others seem less sensible and more politically motivated.”
Among the most significant changes is the strengthening of subcontracting provisions. Section 97 of the GWB now allows contracting authorities to require prime contractors to consider the interests of small and medium-sized enterprises (SMEs). This can be achieved by mandating that subcontractors themselves award contracts, thereby promoting broader participation and competition.
Another major shift is the abolition of the suspensive effect of immediate appeal in procurement review proceedings – section 173 of the GWB. This means that procurement processes will no longer be automatically halted during legal challenges, potentially reducing delays.
To enhance inter-administrative cooperation, section 108 of the GWB has been amended to facilitate public-public partnerships, enabling contracting authorities to collaborate more easily without triggering competitive tendering requirements. Additionally, environmental, social and innovation-related criteria will now be explicitly considered during market research – section 28 of the VgV – aligning procurement practices with Germany’s broader sustainability and innovation goals.
In response to a recent Court of Justice of the EU (CJEU) ruling, the principle of equal treatment has been restricted. Section 97 of the GWB now allows for the exclusion of certain third-country bidders from procurement procedures, reflecting growing concerns over strategic autonomy and supply chain security.
Finally, section 135 of the GWB introduces a waiver of ineffectiveness of unlawful de facto contracts, provided there are overriding interest reasons. This provision could legitimise certain irregular award if deemed essential for public welfare.
Pinsent Masons is holding a German language webinar on the reforms on 10 September. Find out more and register.
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