What does contract volume mean?
The contract volume (Auftragsvolumen), also called the estimated contract value, is the expected total value of a public contract excluding VAT, as determined by the contracting authority before the procurement procedure starts. Estimating the contract volume correctly is one of the most important preparatory steps in the procurement procedure, because it decides whether the European thresholds are exceeded and EU-wide procurement law therefore applies.
The estimate must be made with due expertise at the time the notice is sent or the procurement procedure is initiated, taking into account all price components foreseeable at the time of the estimate. Under Section 3 VgV (Public Procurement Ordinance), the estimated contract value covers the total value including all options and any extensions. For framework agreements, the estimated maximum value of all individual contracts over the entire term is decisive. Artificially splitting contracts to avoid the thresholds is expressly prohibited.
When estimating the contract volume, the contracting authority must add up similar services if they are functionally or economically related. This applies in particular to lots that are tendered together. The estimate must be documented in a traceable way and be based on sound market research, historical procurement data or comparable past experience.
Relevance for bidders
For bidders, the contract volume is a key indicator of how economically attractive a tender is and what requirements to expect. A higher contract volume usually comes with stricter suitability requirements, for example regarding minimum turnover, references or capacities. Bidders should use the stated contract volume to assess early whether they can meet the likely suitability criteria.
The contract volume also affects the choice of procedure and therefore the complexity of the procurement process. Contracts above the EU thresholds are subject to longer deadlines and more extensive documentation obligations, but at the same time they give bidders stronger legal remedies through the public procurement tribunals (Vergabekammern).
Legal framework
The rules for estimating the contract value are set out in Section 3 VgV and Section 3 SektVO (Sector Ordinance). The EU thresholds are adjusted regularly by regulation of the European Commission and adopted into national law. The ban on artificial splitting follows from Section 3(2) VgV. Below the thresholds, the value limits of the respective state procurement laws as well as the UVgO and VOB/A apply.