BVergG 2026 DRAFT - Planned changes in relation to the choice of award procedure

The draft of a „Public Procurement Act 2026“ (in short: „BVergG 2026 draft“) is currently available for review, with which, among other things, the „Federal Act on the Award of Contracts“ (Federal Law Gazette I 65/2018 as amended by Federal Law Gazette II 91/2019; „BVergG 2018“) is to be amended. One of the objectives of the amendment is to facilitate participation in procurement procedures; to achieve this objective, it is planned to raise the threshold values for procurement procedures in the sub-threshold area, among other things. This is intended to enable the awarding of contracts in the sub-threshold area as unbureaucratically as possible, while at the same time making the best possible and economical use of public funds and preventing anti-competitive behaviour (see explanations on the BVergG 2026 draft, 13). The increase in thresholds affects both contracting authorities and sector contracting entities:

Type of process BVergG 2018 BVergG 2026 draft
Contracting authorities - Part 2
Restricted procedure without prior publication (Section 43) Construction contracts: < EUR 1,000,000.00
Supply and service contracts: < EUR 143,000.00
Construction contracts: < EUR 2,000,000.00
Supply and service contracts: < EUR 200,000.00
Negotiated procedure without prior publication (§ 44 para. 2 no. 1) < EUR 143,000.00 -
Direct award (§ 46) < EUR 143,000.00 Construction contracts: < EUR 200,000.00
Supply and service contracts: < EUR 143,000.00
(pursuant to § 12 para. 1 no. 1)
Direct award with prior publication (Section 47) Supply and service contracts: < EUR 143,000.00
Construction contracts: < EUR 500,000.00
Supply and service contracts: < EUR 143,000.00
(pursuant to § 12 para. 1 no. 1)
Construction contracts: < EUR 2,000,000.00
Sector client - 3rd part
Restricted procedure without prior publication (Section 212) - Construction contracts: < EUR 2,000,000.00
Supply and service contracts: < EUR 150,000.00
Negotiated procedure without prior publication (Section 221) - Construction contracts: -
Supply and service contracts: < EUR 200,000.00
Direct award (§ 213) < EUR 143,000.00 Construction contracts: < EUR 200,000.00
Supply and service contracts: < EUR 150,000.00
Direct award with prior publication (Section 214) Supply and service contracts: < EUR 200,000.00
Construction contracts: < EUR 500,000.00
Supply and service contracts: < EUR 200,000.00
Construction contracts: < EUR 2,000,000.00

The most significant changes in this context relate to works contracts; the thresholds for works contracts are even quadrupled in some cases (cf. increase in the threshold for direct awards with prior publication in the sectoral area from EUR 500,000.00 to EUR 2,000,000.00). In the case of supply and service contracts, no increase in the thresholds for direct awards is envisaged for contracting authorities; this is because Union procurement law already applies to central contracting authorities from the amount specified in Section 12(1)(1) BVergG 2018 (currently EUR 143,000.00) (cf. explanations on the BVergG 2026 draft, 13). In the sector area, at least a marginal increase to EUR 150,000.00 is planned for the direct award of supply and service contracts.

In connection with direct awards, the BVergG 2026 draft also stipulates that the contracting authority or sector contracting entity must endeavour to obtain at least three comparative offers or non-binding price information for direct awards with an estimated contract value of more than EUR 50,000.00 (Sections 46 (4), 213 (4) BVergG 2026 draft). As the contracting authority cannot force a contractor to submit an offer or to provide non-binding price information, it should be sufficient to endeavour to obtain corresponding offers. The contracting authority is not obliged to endeavour to obtain tenders or price information if there are objective reasons for doing so. Such objective reasons include, for example, the existence of exclusive rights, demonstrable urgency or a demonstrable monopolistic market. In any case, past business relationships do not constitute an objective reason. The contracting authority must document its endeavours in this regard as well as any objective reasons (cf. explanations on the BVergG 2026 draft, 14).

In the case of direct awards with prior publication, the amendment also plans that the contracting authority or sector contracting entity must publish and publicise the intended direct award with prior publication throughout the EU if it identifies a cross-border interest (Sections 47 (3), 214 (3) BVergG 2026 draft). The amendment follows the case law of the European Court of Justice, according to which the principles of the TFEU apply to contract awards with cross-border interest (inter alia ECJ 14 July 2022, Case C-436/20 „Asade“; 05.07.2024, Case C-788/23 „EUROCASHI1“). An exclusively national publication would therefore not be sufficient to provide interested companies with the information required for possible participation in the procedure. In this case, publication at Union level is required (see Explanatory Notes on the BVergG 2026 draft, 13).

The review period for the BVergG 2026 draft ends on 7 November 2025. It remains to be seen whether the changes currently planned in connection with the choice of award procedures will be retained in this form.

Written by:

Tanja Marakovics
Associate

SHMP Schwartz Huber-Medek Partner Rechtsanwälte GmbH
Hohenstaufengasse 7
A-1010 Vienna

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