What does restricted tender mean?
The restricted tender (beschränkte Ausschreibung) is a procurement procedure used below the EU thresholds. Unlike the public tender, in which any company can take part with a bid, the restricted tender invites only a limited number of companies to submit bids. It can be carried out with or without a preceding participation contest.
In a restricted tender with participation contest, a public notice is first published, and interested companies can apply in response with a request to participate. After suitability has been checked, the suitable candidates are invited to submit a bid. In a restricted tender without participation contest, the contracting authority selects the companies to be invited directly. This variant is allowed only under certain conditions, for example if a public tender did not produce an economic result or if there is particular urgency.
The counterpart above the thresholds is the restricted procedure under the VgV (Public Procurement Ordinance), which always requires a participation contest. The restricted tender differs from the restricted procedure in its lower degree of formality and the option of doing without a participation contest. In both cases, at least three suitable companies must be invited to bid to ensure sufficient competition.
Relevance for bidders
For bidders, the restricted tender is a particular challenge, because access to the competition is limited. Companies that are not invited directly or do not learn about the tender can only take part if a participation contest is held. It is therefore important for bidders to raise their profile with public contracting authorities and to be listed in relevant industry directories or the AVPQ.
In restricted tenders with participation contest, bidders should pay particular attention to the quality of their request to participate, because the companies to be invited are selected based on the submitted suitability evidence and references. A convincing presentation of your own capabilities increases your chances of being invited to bid.
Legal framework
The restricted tender is governed by Section 9 UVgO (Sub-Threshold Procurement Rules) for supply and service contracts and by Section 3 VOB/A (Construction Contract Procedures, Part A) Section 1 for works contracts. These provisions list exhaustively the conditions under which a restricted tender without participation contest is allowed. The awarding office (Vergabestelle) must document and justify the choice of procedure type and the selection of the invited companies.