Compliance in Public Procurement Law 2026

Definition: Compliance in public procurement law denotes the totality of measures and structures that ensure a company or contracting authority complies with all applicable laws, rules and ethical standards in connection with public procurement procedures.

Last updated: January 2026 · Legal basis: Directive 2014/24/EU Articles 57–59, GWB Sections 123–125, BVergG 2018 Sections 68–71

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Compliance in the procurement context

Compliance in public procurement law has two dimensions: the regulatory conformity of the contracting authority when conducting procurement procedures and the regulatory conformity of bidders and contractors as a prerequisite for participating in public procurement.

For bidders, compliance is particularly relevant in connection with the procurement-law grounds for exclusion: companies that have breached certain laws in the past may be excluded from participating in public procurement. For contracting authorities, compliance management is an instrument for avoiding procurement errors that can lead to reviews, damages claims and supervisory consequences.

Grounds for exclusion as a compliance obligation

The procurement-law grounds for exclusion (Article 57 of Directive 2014/24/EU; Sections 123, 124 GWB; Section 68 BVergG 2018) are the central instrument through which procurement law imposes compliance requirements on bidders.

Mandatory grounds for exclusion (Section 123 GWB)

Bidders are mandatorily excluded who have been convicted by final judgment of:

• Forming a criminal organisation (Section 129 StGB)
• Corruption (Sections 332, 334 StGB)
• Fraud (Section 263 StGB)
• Terrorism financing
• Money laundering
• Human trafficking and child labour

Discretionary grounds for exclusion (Section 124 GWB)

Contracting authorities may exclude bidders in cases of:

• Serious violations of professional conduct requirements
• Conflicts of interest
• Anti-competitive agreements (e.g. cartel infringements)
• Significant failure in previous contracts
• False information in the procurement procedure

Self-cleaning

Companies affected by grounds for exclusion can demonstrate, through so-called "self-cleaning", that they can be considered reliable despite previous infringements. Article 57(6) of Directive 2014/24/EU and Section 125 GWB govern this mechanism.

Requirements for effective self-cleaning:

1. Active clarification of the offences and compensation payments to victims
2. Comprehensive cooperation with investigating authorities
3. Introduction of specific technical, organisational and personnel measures (compliance management system, training, personnel measures)

The company's compliance management system (CMS) is thus not only an internal steering tool, but also relevant evidence under procurement law.

Compliance management for contracting authorities

Public contracting authorities also have a compliance obligation: they must design and document procurement procedures so that all legal requirements are met.

Key compliance elements for contracting authorities:

• Complete procurement documentation (Section 8 VgV; Section 22 BVergG 2018)
• Anti-corruption measures in the procurement area (four-eyes principle, rotation in award decisions)
• Compliance with equal-treatment obligations
• Correct estimation of the contract value to avoid undercutting thresholds
• Proper documentation of negotiation meetings

Anti-corruption and conflicts of interest

Conflicts of interest must be actively prevented and documented by the contracting authority (Article 24 of Directive 2014/24/EU; Section 6 VgV). Persons involved in the procurement procedure who have personal, economic or other interests that could jeopardise their impartiality must be excluded from the procedure.

FAQ

Can a company under ongoing corruption investigation still participate in tenders? Only if there is not yet a final conviction. Ongoing investigations alone do not constitute a mandatory ground for exclusion; however, the contracting authority may examine discretionary grounds for exclusion where there are concrete indications of serious infringements.

What must a compliance management system contain for self-cleaning? An effective CMS for self-cleaning typically includes: compliance policies, training programmes, whistleblower systems, internal control mechanisms, reporting structures, and an independent compliance function.

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