Below-Threshold Area in Procurement Law 2026 – National Procurement Below the EU Threshold
Below-threshold area in procurement law: contracts below the EU thresholds. Applicable law, procedures and differences to the above-threshold area.
Definition: The below-threshold area in procurement law refers to all public contracts whose estimated contract value does not reach the thresholds set by the European Commission and which are therefore not governed by European procurement law but by national procurement rules.
Last updated: January 2026 · Legal status: UVgO, VOB/A (Section 1), Budgetary Principles Act, BVergG 2018
What is the below-threshold area?
The below-threshold area covers all public procurement transactions in which the estimated net contract value lies below the applicable EU thresholds. These thresholds are set every two years by the European Commission and, since 2024, are:
| Type of contract | Public contracting authorities | Utilities |
|---|---|---|
| Supply and service contracts | EUR 143,000 | EUR 443,000 |
| Works contracts | EUR 5,538,000 | EUR 5,538,000 |
| Social and special services | EUR 750,000 | EUR 1,000,000 |
Contracts below these limits fall into the below-threshold area and are not subject to European primary procurement law, although certain principles (transparency, non-discrimination, cross-border interest) may also have to be observed here.
Applicable law
In the German below-threshold area, the Below-Threshold Procurement Regulation (UVgO) and the VOB/A (Section 1 for works) apply above all. These national rules are less formally strict than the above-threshold law, but also recognise structured procurement procedures:
- Public tender: Standard form, comparable to the open procedure
- Restricted tender with pre-qualification competition: Two-stage procedure
- Restricted tender without pre-qualification competition: Direct approach to selected firms
- Freihändige Vergabe (VOB/A) / negotiated award (UVgO): For simpler or urgent procurements
- Direct award: For very small procurements below certain value limits
Differences from the above-threshold area
The below-threshold area is characterised by less strict formal rules, allowing shorter procedures and more flexibility for contracting authorities:
- Shorter minimum periods for bid and application deadlines
- No mandatory publication in the supplement to the Official Journal of the EU (TED)
- No mandatory electronic bid submission (but recommended)
- Simpler documentation and transparency obligations
- More limited legal protection (no review proceedings before procurement chambers in some federal states)
Principles also apply in the below-threshold area
Although the strict EU procurement law does not apply, basic procurement principles must also be observed in the below-threshold area. These include the competition principle, the principle of equal treatment, the transparency principle and the non-discrimination principle. In the case of cross-border interest – that is, if companies from other EU Member States might be interested in a contract – EU fundamental freedoms may be directly applicable.
Austria
In Austria, the Federal Procurement Act 2018 (BVergG 2018) also applies to the below-threshold area, but provides for simplified procedure types. The USB (Unterschwellenbereich – below-threshold area) permits the use of simplified procedures such as direct award up to EUR 100,000 (net) and the restricted tender with a limited number of bidders.
FAQ
Does the GWB also apply in the below-threshold area? The procurement provisions of the GWB (§§ 97 et seq.) generally apply only above the EU thresholds. In the below-threshold area, the respective budgetary rules of the federal states and municipalities as well as UVgO and VOB/A apply.
Is there also legal protection in the below-threshold area? Yes, but it is generally weaker. In some federal states there is special below-threshold legal protection; otherwise civil-law actions (e.g. for injunction or damages) are available.
What is a direct award? A direct award is the simplest form of below-threshold procurement, in which a contracting authority orders directly from a company without a formal procedure. It is only permitted up to certain value limits (e.g. up to EUR 1,000 net under UVgO).
Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialising in procurement law.
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