New Public Procurement Acceleration Act: Far-Reaching Changes to Public Procurement Starting in July 2026

The Public Procurement Acceleration Act is intended to comprehensively reform and accelerate public procurement starting July 1, 2026. Among other things, the Act provides for higher thresholds for direct awards, simplified procurement procedures, new exceptions for large-scale projects, and greater consideration of innovation, digital sovereignty, and sustainability. At the same time, key changes are being introduced to legal remedies under public procurement law. This article provides an overview of the most important changes and assesses their practical implications for contracting authorities and companies.

With the Act on Accelerating Public Procurement (Vergabebeschleunigungsgesetz), the legislature is implementing key provisions of the coalition agreement. The focus is on raising the value thresholds, easing requirements for proof of suitability, and simplifying and accelerating the procurement and legal protection processes. The Bundestag and Bundesrat have approved the law. It is scheduled to take effect—following promulgation—on July 1, 2026.

An overview of the key changes in the Act:

1. Limited obligation to tender, value thresholds, and fewer registry queries

The Public Procurement Acceleration Act leads, on the one hand, to a limited obligation for top-level and higher federal authorities to conduct Europe-wide tenders by raising the thresholds for supply and service contracts and, on the other hand, to increased permissible public-public cooperation. In addition, the sectoral exemptions under Section 107(2), sentence 3, no. 2 of the Act Against Restraints of Competition (GWB) are being expanded to include the creation of military infrastructure as well as the areas of cybersecurity and digital sovereignty.

The Federal Budget Code is being amended so that services with a contract value of up to 50,000 euros net may in future be awarded via direct award without a formal procurement procedure. In doing so, contracting authorities must consider different companies, and general principles such as cost-effectiveness and transparency must continue to be observed.

In addition, the threshold for the obligation to consult the competition register and for reporting to the procurement statistics is raised to 50,000 euros. Below this threshold, contracting authorities may use the register and statistics on a voluntary basis.

2. Lot Allocation and Major Projects: New Section 97a GWB

According to the new Section 97a GWB, public contracts are generally to be divided into several lots. This preserves the core of the existing, SME-friendly structure. The known exceptions, such as those based on economic or technical grounds, also remain in place.

A new exception has been added for large infrastructure projects, particularly those funded by the “Infrastructure and Climate Neutrality” special fund or related to transportation infrastructure. In these cases, the contracting authority may deviate from the requirement to divide the contract into lots if it can be demonstrated that such division would prevent rapid implementation and the urgency was not caused by the contracting authority. This applies to contracts with an estimated value of at least twice the EU thresholds.

In the case of lump-sum contracts, the contracting authority may require the contractor to give special consideration to the interests of small and medium-sized enterprises when awarding subcontracts. The new options for deviation are to be evaluated by September 30, 2027.

3. Support for SMEs and Start-ups

The position of small and medium-sized enterprises as well as start-ups is being specifically strengthened in several areas. Their particular circumstances should be given greater consideration in the design of procurement procedures, particularly regarding eligibility requirements, the evidence required, and the selection of companies permitted to submit bids. At the same time, it is clarified that start-ups may also use alternative forms of evidence if traditional references are not yet available in sufficient quantity.

4. Digital Sovereignty, Innovation, and Climate-Friendly Procurement

In addition, the legislature is placing greater emphasis on strategic procurement objectives. Aspects of digital sovereignty, such as interoperability, data localization, and IT security, may in the future be explicitly used as award criteria. Innovation is to be promoted, among other things, by giving alternative bids a greater role. Thus, pursuant to Section 35(1), sentences 1 and 2 of the Public Procurement Ordinance (VgV), contracting authorities will in the future be required to explicitly specify whether alternative bids are permitted, required, or excluded.

In addition, environmental, social, quality, and innovation aspects can already be taken into account during market exploration. Finally, the regulatory authorization in Section 113 of the German Act Against Restraints of Competition (GWB) will be amended so that binding minimum standards for climate-friendly procurement can be established by June 30, 2027, particularly for steel and cement produced with low emissions.

5. celerated and Digitized Legal Remedies

Legal remedy proceedings under above-threshold public procurement law are to be significantly accelerated. A key change is that the suspensive effect of an immediate appeal against the rejection of a request for review will no longer apply. This had been strongly criticized by many parties in the run-up to the amendment. In the appellate instance, the unsuccessful bidder will in many cases be left with only the possibility of seeking damages.

The digitization and acceleration of procurement review proceedings also affect the transmission and inspection of files as well as the conduct of proceedings. Furthermore, procedural decisions can be made to a greater extent than before by the presiding judge or a full-time associate judge. In cases of obvious abuse, the right to file a request is also eliminated.

6. What does this mean for your company?

cedural acceleration with targeted support for small and medium-sized enterprises, as well as a stronger focus on innovation, digitalization, and digital sovereignty. At the same time, it sets the course for more climate-friendly public procurement.

For contracting authorities, this means they should review their procurement strategies, internal processes, and documentation standards and adapt them to the new scope for flexibility. This includes, in particular, the deliberate use of direct awards up to 50,000 euros, taking advantage of the expanded options for lot formation, and the early integration of strategic goals such as innovation, digital sovereignty, and sustainability into the design of procurement procedures.

Companies would be well advised to align their bidding and participation strategies with the new framework conditions at an early stage as well. This includes, for example, preparing standardized documents, taking advantage of improved access opportunities for SMEs and start-ups, and clearly highlighting digital, innovative, and climate-friendly features in their bids.

Overall, there is no major breakthrough, which is likely due, at least in the above-threshold sector, to the established European legal framework, which is currently undergoing reform at the EU level.

Legal protection remains an important tool for reviewing procurement decisions. While the abolition of the suspensive effect of immediate appeals is likely to bring about some acceleration, it is questionable from the perspective of the rule of law and with regard to the desired harmonization of case law. Contracting authorities must weigh the extent to which they will utilize the option to award the contract in the event of a successful appeal, thereby assuming a potential risk of liability for damages.

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