What does thresholds mean?
Thresholds are monetary limits that determine which procurement law applies to a public contract. If the estimated contract value reaches or exceeds the relevant threshold, the contract must be awarded under the stricter rules of EU procurement law (above the thresholds). Below the thresholds, the less formal national procurement rules apply (below the thresholds).
The European Commission resets the EU thresholds every two years and publishes them in a regulation. They differ by contract type and type of contracting authority. Since January 1, 2026, the thresholds for classic contracting authorities have been EUR 216,000 for supply and service contracts and EUR 5,404,000 for works contracts. For the highest and higher federal authorities, the threshold for supplies and services is EUR 140,000. Higher thresholds apply to sector contracting entities and in the defense sector. The amounts always refer to the estimated net contract value excluding VAT.
Estimating the contract value correctly is key to determining which procurement law applies. All options, extensions and lots must be taken into account. Splitting contracts artificially to avoid the thresholds is expressly prohibited. This so-called ban on splitting is meant to ensure that contracts are not broken up into smaller packages to avoid EU-wide competition.
Facts & figures
| Contract type and contracting authority | 2026–2027 | 2024–2025 |
|---|---|---|
| Works contracts (all contracting authorities) | EUR 5,404,000 | EUR 5,538,000 |
| Supplies/services, highest and higher federal authorities | EUR 140,000 | EUR 143,000 |
| Supplies/services, other contracting authorities | EUR 216,000 | EUR 221,000 |
| Supplies/services, sector contracting entities and defense | EUR 432,000 | EUR 443,000 |
| Works and service concessions | EUR 5,404,000 | EUR 5,538,000 |
| Social and other specific services | EUR 750,000 | EUR 750,000 |
All values are net amounts excluding VAT. They are based on Delegated Regulations (EU) 2025/2150, 2025/2151 and 2025/2152 of October 22, 2025, and apply until December 31, 2027.
Relevance for bidders
For bidders, knowing the thresholds is of great practical importance. Contracts above the thresholds are subject to stricter transparency obligations and therefore offer broader legal protection. Above the thresholds, bidders can use the review procedure before the public procurement tribunal (Vergabekammer), while below the thresholds only the general civil courts are available.
The thresholds also affect deadlines, publication obligations and procedure types. Contracts above the thresholds must be published Europe-wide in the Official Journal of the EU (TED) and are therefore open to a larger group of bidders. For bidders who actively search for tenders, it is therefore important to know where which contracts are published.
Legal framework
The thresholds are set in Section 106 GWB (German Act against Restraints of Competition) and are adjusted regularly through the EU threshold regulation. EU Procurement Directives 2014/24/EU and 2014/25/EU define the thresholds at European level in their Articles 4 and 15 respectively. The methods for estimating the contract value are governed by Section 3 VgV (Public Procurement Ordinance). The ban on splitting is in Section 3(2) VgV.