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Procurement procedures

Procedure types

Procedure types refer to the different procurement procedures available to public contracting authorities for procuring services.

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What does procedure types mean?

In German procurement law, public contracting authorities have a range of different procedure types (Ausschreibungsarten) available, which can be used depending on the subject matter of the contract, the contract value and the complexity of the procurement project. Choosing the right procedure type is one of the fundamental decisions in the procurement procedure and must be justified under procurement law.

Above the EU thresholds, the following procedure types are available: The open procedure, in which all interested companies can submit a bid. The restricted procedure, in which only selected candidates are invited to bid after a participation contest. The negotiated procedure with prior participation contest, in which the bids may be negotiated. The competitive dialogue, which is used for particularly complex contracts. The innovation partnership, which is intended for developing and then procuring innovative services. There is also the negotiated procedure without participation contest, which is allowed only under narrow legal conditions.

Below the EU thresholds, a distinction is made between the public tender (öffentliche Ausschreibung), the restricted tender (beschränkte Ausschreibung) with or without participation contest, the negotiated award (Verhandlungsvergabe) and the direct award. These procedures are less formalized, but they are still subject to the principles of competition and transparency.

Relevance for bidders

The procedure type has a direct effect on how bidders can participate and how much effort it takes. In the open procedure, any company can submit a bid directly, while in restricted or negotiated procedures you first have to apply to participate. Bidders must therefore note the procedure type in the notice and adjust their participation strategy accordingly.

Negotiated procedures give bidders the chance to optimize their bids in dialogue with the contracting authority, but they also require more flexibility and negotiating skill. Bidders who regularly take part in public procurements should know the specifics of each procedure type and align their internal processes with them.

Legal framework

The procedure types above the EU thresholds are governed by Sections 119 to 121 GWB (German Act against Restraints of Competition) and Sections 14 to 18 VgV (Public Procurement Ordinance). For works contracts, the provisions of VOB/A (Construction Contract Procedures, Part A) Section 2 apply. Below the thresholds, the UVgO (Sub-Threshold Procurement Rules, Sections 8 to 12) and VOB/A Section 1 govern the permitted procedure types and their conditions. The choice of procedure type must be documented and justified.

Related terms

Prior information notice (Vorinformation)
The prior information notice is an early notice that contracting authorities use to inform the market about planned purchases.
Public procurement law (Vergaberecht)
Public procurement law is the body of legal rules that governs how contracting authorities must award contracts for construction work, supplies and services.
Open procedure (Offenes Verfahren)
The open procedure is the most transparent procedure type. Any interested company can submit a bid, and there is no preselection.
Restricted procedure (Nicht offenes Verfahren)
The restricted procedure is a two-stage procurement procedure that starts with a competitive call for participation, after which only selected applicants are invited to submit a bid.
Negotiated procedure (Verhandlungsverfahren)
The negotiated procedure is a procedure type in which the contracting authority can negotiate the content and terms of bids with selected bidders.
Prequalification (Präqualifizierung)
Prequalification is an upfront process in which companies prove their general suitability for public contracts in advance and have it entered in a register.
Restricted tender (Beschränkte Ausschreibung)
The restricted tender is a below-threshold procurement procedure in which only selected companies are invited to submit bids.
Single-stage procurement procedure
A single-stage procurement procedure is a procedure in which all bidders submit their bids in a single phase, without a preceding participation contest.
Negotiated award (Freihändige Vergabe)
The negotiated award is an informal below-threshold procurement procedure in which the contracting authority can negotiate the contract award directly with companies.
Sustainable procurement
Sustainable procurement means building environmental, social and economic criteria into public procurement procedures.