German Military to Streamline Construction Contracts
Politics

German Military to Streamline Construction Contracts

The German Ministry of Defense has announced significant changes to procurement procedures for the Bundeswehr (German Armed Forces), allowing for considerably streamlined processes for construction projects and service contracts. Responding to a query from Left Party parliamentarian Pascal Meiser, the ministry revealed plans to significantly raise the threshold for direct contract awards, bypassing formal tendering processes.

Recent legislation aimed at accelerating the Bundeswehr’s construction and equipment acquisition initiatives permits direct allocation of construction projects up to a value of €1 million. Previously, this limit stood at €15,000. For supply and service contracts, the threshold will increase to €443,000, a substantial rise from existing regulations.

Earlier proposals suggested slightly lower thresholds of €500,000 and €100,000 respectively. Even then, projections from the Ministry of Defence indicated that these modifications would have encompassed approximately 97.5% of the roughly 18,800 construction contracts planned for 2024. For the 49,760 supply and service contracts anticipated, nearly 35% would have been eligible for direct allocation. The Ministry was unable to provide a precise figure for the total volume of contracts falling below the revised thresholds for 2024.

The changes have drawn criticism, with parliamentarian Meiser citing parallels to the controversial “mask deal” affair of the past. He argued that the move towards “unfettered direct allocations” risks repeating past shortcomings and a lack of oversight.