What does award criteria mean?
Award criteria (Zuschlagskriterien) are the standards the contracting authority uses to evaluate the bids received and identify the most economically advantageous bid. They must be expressly stated and weighted in the contract notice or the tender documents, so that all bidders know from the start which criteria their bid will be evaluated against. The award criteria therefore form the decisive framework for the award decision.
The most important award criterion is usually the price or the cost, and life-cycle costs can also be taken into account when evaluating costs. In addition, qualitative criteria such as technical merit, aesthetic and functional characteristics, environmental characteristics, customer service, delivery time, operating costs or the organization of the staff assigned to perform the contract can be used as award criteria. The contracting authority is free to choose the criteria, as long as they are linked to the subject of the contract.
The weighting of the award criteria must be transparent and set in advance. The contracting authority can state the weighting as percentages or as a ranking. In exceptional cases, the weighting can be replaced by a range. Changing the award criteria or their weighting after the bid deadline is not allowed, because this would violate the principle of transparency and equal treatment.
Facts & figures
| Indicator | Value |
|---|---|
| Legal basis above the thresholds | Section 127 GWB, Section 58 VgV |
| Life-cycle cost evaluation | Section 59 VgV |
| Legal basis for construction work | Section 16d VOB/A |
| Legal basis below the thresholds | Section 43 UVgO |
| EU directive | Art. 67 Directive 2014/24/EU |
| EU threshold for supplies and services (2026–2027) | EUR 216,000 net |
Relevance for bidders
For bidders, the award criteria are the central steering tool when preparing a bid. A smart bidder aligns its bid with the most heavily weighted criteria to achieve the best possible score. If, for example, quality is weighted at 60 percent and price at 40 percent, it pays to invest in the qualitative presentation and not to compete on price alone.
Bidders should analyze the award criteria thoroughly before starting to prepare the bid and develop a bid strategy tailored to the specific criteria structure of each tender. If the evaluation method is unclear, bidder questions should be asked in time. The award criteria also show which priorities the contracting authority sets and which aspects of the bid should be presented in particular detail.
Legal framework
Above the EU thresholds, award criteria are governed by Section 127 GWB (German Act against Restraints of Competition) and Section 58 VgV (Public Procurement Ordinance). Section 58 VgV defines the award to the most economically advantageous bid and the permissible criteria. Section 59 VgV governs how life-cycle costs are taken into account. For construction work, the corresponding rules are in Section 16d VOB/A. EU Procurement Directive 2014/24/EU governs award criteria in Article 67. Below the thresholds, Section 43 UVgO (Sub-Threshold Procurement Ordinance) contains the provisions on award criteria.