Lot in Public Procurement 2026

Definition: A lot in public procurement is a substantively, geographically or functionally delimited sub-area of an overall contract that can be tendered and awarded separately, in order to promote competition and in particular to enable small and medium-sized enterprises to participate in public tendering procedures.

Last updated: January 2026 · Legal basis: Art. 46 Directive 2014/24/EU; § 97 (4) GWB; § 30 VgV; § 58 BVergG 2018

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What is a lot?

The lot is the central instrument for promoting SMEs in public procurement: it enables SMEs to apply for a sub-area of a larger contract without having to handle the entire performance volume. Art. 46 of Directive 2014/24/EU in principle obliges contracting authorities to give reasons where they do not divide a contract into lots. In Germany, this principle is anchored as the "principle of trade-lot award" in § 97 (4) GWB and § 5 (2) VOB/A; in Austria, § 58 BVergG 2018 stipulates the division into lots.

Lots may be formed according to various criteria:

• Trade lots (by trade or service type, e.g. electrical, heating, plumbing)
• Geographical lots (by geographical regions)
• Time lots (by delivery dates or contract phases)
• Quantity lots (by delivery quantities)

Obligation to award by lots

Award by lots is in principle required; the contracting authority must justify an overall award. In Germany, § 97 (4) sentence 3 GWB requires decisions departing from division into lots to be documented and justified. Recognised reasons for overall awards are:

• Economic or technical indivisibility of the service
• Excessive coordination effort with multiple contractors
• Disproportionate cost increase due to division into lots

Insufficient justification for an overall award is a frequent subject of review proceedings.

Award by lots and thresholds

For assessing whether EU law applies, the total value of all lots is decisive, not the value of the individual lot. Where the total value of all lots together exceeds the EU threshold, all lots must be awarded under EU law. Exceptionally, individual lots with a value below EUR 80,000 (supplies and services) or below EUR 1,000,000 (works) may be awarded under simplified national rules, provided the cumulative value of these exception lots does not exceed 20% of the total value (Art. 46 (4) Directive 2014/24/EU).

Bidder rights in award by lots

Bidders may bid for one or several lots; the contracting authority may limit this through a lot restriction. A lot restriction (maximum number of lots that one bidder can be awarded) must be announced in the contract notice. It serves to prevent monopoly-like concentration. Bidders can shape their offers for different lots, i.e. offer different prices where a combination with other lots is sought (combined bid or lot bundling offer).

FAQ

Can the contracting authority subsequently merge lots? No. A subsequent change to the division of lots after publication of the contract notice is generally unlawful under procurement law and requires cancellation and re-tendering.

What is the difference between a lot and an option? A lot is a portion of the contract defined from the outset and awarded separately. An option is a unilateral right of the contracting authority to subsequently extend the scope of the contract.

Must each lot be announced separately? No. Several lots can be combined in a single contract notice. The bid conditions for each lot must, however, be clearly differentiated.

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