What does UVgO (Sub-Threshold Procurement Ordinance) mean?
The Unterschwellenvergabeordnung (UVgO, Sub-Threshold Procurement Ordinance) is the central set of rules for awarding public supply and service contracts whose estimated value is below the EU thresholds. It entered into force on February 7, 2017, and replaced VOL/A Section 1, which had applied until then. The UVgO applies where the individual federal states (Bundesländer) have made it binding by administrative regulation or decree.
Compared to EU procurement law above the thresholds, the UVgO offers a simplified but still structured set of procedures. It has three procedure types: the public tender (öffentliche Ausschreibung, comparable to the open procedure), the restricted tender (beschränkte Ausschreibung) with or without a competitive call for participation, and the negotiated award (Verhandlungsvergabe) with or without a competitive call for participation. For contracts up to certain value limits, the UVgO also allows direct awards, where a contract can be placed without a formal procedure.
A key difference from the range above the thresholds is legal protection. Below the thresholds, bidders have no review procedure before the public procurement tribunal (Vergabekammer). Legal protection can only be sought through the general civil courts, which is much harder in practice. Still, the procurement principles of transparency, competition and equal treatment must also be observed below the thresholds.
Relevance for bidders
The UVgO is especially relevant for bidders, because most public contracts by value are below the EU thresholds. Knowing the UVgO procedural rules is therefore essential for taking part in public tenders successfully. Bidders should know which procedure type is used and what requirements apply to suitability and to the bid.
Because legal protection below the thresholds is limited, bidders should pay particular attention to whether the contracting authority follows the procedural rules and raise complaints about violations early. Even if no formal review procedure is possible, awarding offices can be made aware of violations through the competent supervisory authority.
Legal framework
The UVgO was issued on the basis of Section 4 of the Budgetary Principles Act (Haushaltsgrundsätzegesetz, HGrG). It does not apply directly as a law but is made binding by administrative regulations of the federal states and the federal government. Most federal states have now introduced the UVgO. For construction work below the thresholds, VOB/A Section 1 continues to apply. The UVgO contains rules on procedure types (Sections 8 et seq.), publication (Sections 17 et seq.), suitability checks (Sections 33 et seq.) and award criteria (Section 43).