What does restricted procedure mean?
The restricted procedure is one of the procedure types provided for in the EU Procurement Directive for awarding public contracts above the EU thresholds. Unlike the open procedure, where any interested company can submit a bid, the restricted procedure runs in two stages. In the first stage, there is a competitive call for participation (Teilnahmewettbewerb) in which interested companies must prove their suitability. In the second stage, only the applicants found suitable are invited to submit a bid.
This procedure type is especially suited to complex contracts or to markets with a large number of potential bidders, because the contracting authority can limit the group of bidders to a reasonable number of qualified companies. At least five applicants must be invited. The contracting authority can also set a maximum number in the contract notice. Applicants must be selected using transparent, non-discriminatory criteria.
The restricted procedure is a standard procedure type on an equal footing with the open procedure. The contracting authority can choose freely between the two without having to give a specific reason. Below the EU thresholds, the restricted tender with a competitive call for participation (beschränkte Ausschreibung mit Teilnahmewettbewerb) corresponds to the restricted procedure.
Relevance for bidders
For bidders, the restricted procedure means more effort in the first phase, because a complete request to participate with proof of suitability has to be prepared first. At the same time, it has the advantage that only a limited number of competitors take part in the bidding phase, which increases the chances of winning the contract.
Bidders should prepare the request to participate with the greatest care and submit all required references, proof and declarations in full. An incomplete application can mean that the applicant is not invited to submit a bid. It is also a good idea to analyze the selection criteria closely and to highlight your own strengths specifically.
Legal framework
The restricted procedure is governed by Section 16 VgV (Public Procurement Ordinance). The competitive call for participation follows Section 51 VgV. EU Procurement Directive 2014/24/EU governs the restricted procedure in Article 28. For construction work, the restricted procedure is in Section 3a(2) VOB/A-EU. In the utilities sector, the corresponding rules of the SektVO (Sector Ordinance) apply. Under the VgV, the participation deadline is at least 30 days from the date the contract notice is sent.