Central Procurement in Procurement Law 2026

Central procurement: Bundling public purchasing through specialised bodies to increase efficiency and reduce costs in public procurement.

Definition: Central procurement refers to the bundling of procurement processes of multiple public contracting authorities through a specialised central body that awards contracts in its own name or in the name of other contracting authorities in order to achieve economies of scale and reduce administrative effort.

Last updated: January 2026 · Legal status: Directive 2014/24/EU Art. 2 (1) no. 16, BVergG 2018 § 8, GWB § 120 (4)

What is central procurement?

Central procurement is the model of public contract award in which one or more procurement bodies act on behalf of a large number of public contracting authorities in order to achieve more economical conditions through bundling of demand. Instead of each authority, municipality or public institution tendering its supplies, services or construction services individually, a central procurement body takes over this task in a bundled manner – with considerable potential for savings.

The model has gained considerable importance in Austria and Germany in recent years. In Austria, the Federal Procurement Agency (BBG) functions as the federal central procurement body; in Germany, the Procurement Office of the Federal Ministry of the Interior (BeschA) and various federal-state central offices, among others, perform this function.

Forms of central procurement

The EU procurement directives distinguish between two basic forms of central procurement activity: the wholesaler function and the ancillary function.

In the wholesaler function, the central procurement body acquires goods, services or construction services and resells or onward-awards them to the affiliated contracting authorities. It acts as the contracting authority and bears the procurement-law risk.

In the ancillary function (also: support function), the central procurement body carries out procurement procedures in the name and on behalf of the affiliated contracting authorities, which then themselves become contractual partners. Mere advice and support in procurement processes also counts as ancillary.

Procurement-law basis

EU Directive 2014/24/EU explicitly regulates procurement by central procurement bodies in Articles 37 to 39, thereby creating a uniform legal framework for cross-border bundling models.

Central procurement bodies are in principle subject to the general procurement rules but enjoy certain privileges: contracting authorities that obtain services through a central procurement body that has itself complied with procurement rules are exempt from their own tendering obligation.

In Austria, § 8 BVergG 2018 governs the engagement of central procurement bodies. In Germany, § 120 (4) GWB contains corresponding provisions.

Advantages and criticism

Central procurement offers considerable efficiency advantages but is also discussed critically with regard to its effects on competition and small and medium-sized enterprises.

Advantages:

Volume bundling leads to more favourable conditions
Professionalisation of procurement through specialised experts
Reduction of administrative effort at affiliated bodies
Uniform quality standards

Points of criticism:

Market access barriers for small and medium-sized enterprises (SMEs)
Reduction of supplier diversity
Risk of dependence on a few major suppliers

Related terms

FAQ

What is the difference between central procurement and a framework agreement? A framework agreement is an instrument; central procurement is an organisational model. Central procurement bodies frequently use framework agreements as a tool.

Must contracting authorities use a central procurement body? Generally no – use is voluntary unless there is a statutory obligation to be affiliated and to use the body (as in some federal states for certain product categories).

Is the central procurement body itself subject to procurement law? Yes. The central procurement body must comply with all procurement-law rules in its own tenders.

Last updated: January 2026 All information without guarantee. For legally binding advice, please contact a law firm specialising in procurement law.