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Increasing the thresholds for Europe-wide procurement procedures

Increasing the thresholds for Europe-wide procurement procedures

Every two years, the EU Commission reviews the threshold values for the application of EU public procurement law. Effective as of January 1, 2018, increased sums apply and are directly applicable without further measures by the German legislator.

When awarding construction, supply or service contracts, which have to be put out to tender throughout Europe at the turn of the year, contracting authorities must take into account new thresholds.

The EU Commission’s drafts provide for the following net thresholds:

  • Supply and service contracts with higher and supreme federal authorities: 144,000 €
  • Supply and service contracts with other contracting authorities: 221,000 €
  • Supply and service contracts with sectoral contracting authorities: 443,000 €
  • Construction contracts: 5,548,000 €.

Contracting authorities continue to be required to estimate the expected volume of contracts in the run-up to a planned contract award. The estimate must be realistically based on the current market situation.

The new thresholds are altogether higher than the previous thresholds. The adjustment is based on the EU’s obligations under the Government Procurement Agreement (GPA), which depend on exchange rate developments.

By Carsten Steinert

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