Under Section 127 GWB (German Act against Restraints of Competition), the most economically advantageous tender wins the contract. The basis is the award criteria set in advance. Check which part of the service you offer is evaluated where. Section 127 subsection 1 GWB
Legal and source status: September 5, 2026. The guide to GWB Part 4 explains the earlier review steps.
Most economically advantageous tender: More than price
The law looks at the best price-quality ratio. Besides price or cost, qualitative, environmental and social aspects can be taken into account. The criteria must be linked to the subject matter of the contract. This link can also concern production processes or other life cycle stages. It does not allow an arbitrary rating of general goodwill toward a company. Section 127 subsections 1 and 3 GWB
Criteria must allow competition and effective verification and must not permit an arbitrary award. Criteria and weighting must be stated in the contract notice or the tender documents. For the VgV (Public Procurement Ordinance) area, Section 58 subsection 3 contains, among other things, a special rule for when weighting is not possible for objective reasons. Section 127 subsections 4 and 5 GWB, Section 58 VgV
Fictional example of an evaluation matrix
Assume a procedure awards points that are already weighted: up to 60 for price and 40 for an implementation concept. Under the assumed evaluation method, these are the results:
| Bid | Price points | Concept points | Total |
|---|---|---|---|
| A | 60 | 22 | 82 |
| B | 55 | 34 | 89 |
In this simplified example, B comes out ahead. The higher concept score makes up for the lower price score. The numbers do not show a statutory standard formula. What counts is the method set for the specific procedure. So do not reuse an evaluation calculation from an earlier bid without checking it.
Suitability is a different check
Section 122 GWB concerns the suitability of the company. Section 127 concerns the value of the bid. Proof that your company is generally capable does not replace a required implementation concept.
In the VgV area, the organization, qualifications and experience of the staff assigned to the contract can serve as an award criterion if their quality can have a significant impact on the level of contract performance. The blanket statement “staff qualifications are always only a matter of suitability” would therefore be wrong. Section 58 subsection 2 number 2 VgV
Turn the matrix into a writing task
- Record each criterion with its weight, subcriteria and reference.
- Assign each criterion a concrete statement in the bid and matching evidence.
- Split the drafting time by relevance to the evaluation and by existing gaps.
- Before submitting, check that statements on staff, dates and services match across all documents.
Fictional practical example: If a handover concept is evaluated, responsibilities, steps and verifiable results should be easy to find in it. A general company presentation does not answer this task. Our bid/no-bid guide covers the economic trade-off before this work.
Frequently asked questions
Does the cheapest bid always win under Section 127 GWB?
No. What counts is the most economically advantageous tender based on the award criteria set in advance. Besides price or cost, qualitative, environmental or social aspects can be taken into account. Which aspects count depends on the specific procedure.
What is the difference between suitability criteria and award criteria?
Suitability criteria check the company's ability to perform the contract. Award criteria evaluate the bid. The qualifications of the specific staff deployed can also be relevant to the award evaluation under the conditions of Section 58 VgV.
If you have concrete doubts or suspect violations, check the rules on complaints and review proceedings early.