German Bundestag passes BwPBBG: accelerated planning and procurement for the German Armed Forces

On 15 January 2026, the Bundestag passed the German Act on Accelerated Planning and Procurement for the German Armed Forces (Bundeswehr Planungs- und Beschaffungsbeschleunigungsgesetz, BwPBBG). Apart from a few minor adjustments, the draft adopted by the Bundestag corresponds to the draft bill.

The German Armed Forces need to be modernised more quickly and efficiently. With the AcceleratedPlanning and Procurement Act (BwPBBG) now passed by the Bundestag, equipment and materials are to reach the armed forces more quickly in future. The aim is to increase the operational readiness of the armed forces in the long term. We have already reported on the main changes planned, but it is nevertheless worth taking a closer look at a few selected adjustments.

Adjustments compared to the draft bill

It is still worth taking a closer look at selected adjustments:

• Extension of the protection of essential security interests

Public contracts relating to key defence industry technologies or public contracts that otherwise contribute to strengthening the technological sovereignty of the security and defence industry in Germany can be considered essential security interests. In this way, the legislator is creating a further possibility to justify exceptions to antitrust procurement law in these areas.

• Exemptions from climate-friendly procurement

In order to ensure the effectiveness of the German Armed Forces, the Federal Government is reviewing exemptions from the administrative regulation on climate-friendly procurement and will submit the corresponding proposals by 30 June 2027.

• Compensation transactions for arms purchases outside the EU

There is to be greater scrutiny and promotion of compensation transactions for procurements outside EU procurement law. To this end, the Federal Government will draw up corresponding guidelines by 30 September 2026 (Section 11 (6) and (7) BwPBBG).

• Pre-commercial competitions and IT service specifications

In future, contracting authorities will be able to hold pre-commercial competitions to identify innovative service concepts. The actual contract will then be awarded in a procurement procedure. In the case of contracts involving IT services, the service specifications must include appropriate updates and upgrades.

• Deviation from the principle of lots until 2035

The deviation from the principle of lots was initially only intended to apply until the end of 2030. It now applies until 31 December 2035. Due to poorer market access opportunities, this will primarily affect the interests of small and medium-sized enterprises and start-ups.

Legal protection shortened: The suspensive effect of immediate appeals is still being waived, and the ban on awarding contracts already ends with the first-instance decision of the procurement chamber. This means that effective legal protection focuses heavily on the first instance; afterwards, disadvantaged bidders will only have access to secondary legal protection (damages).

Outlook and consequences

The exemptions still under review and the pending guidelines may result in further changes in the future. The new legal regulation opens up new market opportunities, particularly for large companies in the defence industry. However, the increased requirements, particularly in terms of market knowledge, need to be borne in mind.

For the time being, little will change in terms of the anticipated consequences for SMEs. The fact remains that market access will become more restricted in the future. The deviation from the principle of lots until 2035 will also have a potentially adverse effect on SMEs and newcomers. Hope for SMEs lies in the fact that the Federal Government has already announced that it will continue to take SMEs into consideration despite the accelerated procedures. It remains to be seen how this will specifically be implemented.

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