The German Bundestag initiated a measure aimed at speeding up the awarding of public contracts. A corresponding draft law from the federal government was subsequently approved by the ruling coalition on Thursday.
The core objectives of this legislation include raising the threshold value for federal direct contracts to 50,000 euros. Furthermore, the reforms plan to reduce the general necessity for proof and documentation and streamline the appeal and review processes. Specific measures are also slated for implementation to benefit small and medium-sized enterprises (SMEs) and “young and innovative companies” thereby making it easier for them to participate in public tenders. Additional provisions are set aside to alleviate administrative burdens.
While the draft law was originally scheduled for passage earlier in the year, the final consideration was delayed by an internal debate regarding the flexibility of the so-called principle of lots. Notably, the construction industry and major municipal associations criticized the existing tendering procedures, describing them as excessively complicated and time-consuming.
