Lots in Public Procurement

Lots are sub-portions of a public contract that are awarded separately and promote SME participation. The division into lots is governed by Art. 46 Directive 2014/24/EU and § 97 (4) GWB.

Definition: Lots are delimited parts of a public contract that are awarded separately and enable bidders – in particular small and medium-sized enterprises – to apply for individual parts of the overall contract, pursuant to Art. 46 Directive 2014/24/EU, § 97 (4) GWB and § 100 BVergG 2018.

Last updated: January 2026 · Legal basis: Art. 46 Directive 2014/24/EU; § 97 (4) GWB; § 3 (7) VgV; § 100 BVergG 2018

What are lots in public procurement law?

Lots refer to the division of a public contract into spatial, functional or temporal sub-areas that are awarded individually or in combination. Through division into lots, undertakings that could not or did not wish to perform the overall contract are given the opportunity to apply for individual parts. This serves in particular to promote the participation of small and medium-sized enterprises (SMEs) in public procurement.

Lots can be delimited geographically (e.g. cleaning services for various buildings), substantively (e.g. planning, construction and IT services) or temporally (e.g. framework agreement with annual call-off quotas).

Significance and function

Division into lots is one of the most important instruments for promoting SMEs in public procurement law and counteracts market concentration in public procurement.

Obligation to divide into lots or obligation to give reasons

In Germany, pursuant to § 97 (4) GWB, the contracting authority is in principle obliged to divide contracts into trade and partial lots. Departures from this obligation are permitted on economic or technical grounds; the reasons for not dividing into lots must be documented in the procurement record. The duty to give reasons is substantive; a generic justification is not sufficient.

In Austria, § 100 (1) BVergG 2018 likewise stipulates for the above-threshold range that contracts are in principle to be divided into lots; the contracting authority must justify any decision to dispense with division into lots in the procurement record.

Calculation of contract value with lots

The total value of all lots, not the value of the individual lot, is always decisive for the threshold calculation. § 3 (7) VgV, however, provides a de minimis rule: lots whose individual value does not exceed EUR 80,000 (supplies/services) or EUR 1,000,000 (works) and whose total value does not exceed 20% of the overall contract value may be awarded under the national procedure, even where the overall contract is above the EU threshold. Art. 5 (10) Directive 2014/24/EU permits this so-called "20% rule".

Limit on the number of lots awarded to a bidder

The contracting authority may limit the number of lots that a single bidder may be awarded (Art. 46 (1) sub-paragraph 2 Directive 2014/24/EU). This can prevent a single large undertaking from winning all lots and the SME-promotion purpose of division into lots from being defeated. The limit must be announced in the procurement documents.

Conversely, the contracting authority may set out which combinations of lots it will consider, and then select the most economically advantageous combination of bids (combination bid).

Prohibition of circumvention

Division into lots may not be used to circumvent the EU threshold. Artificial division into lots aimed at pushing the overall contract value below the threshold is prohibited under Art. 5 (3) Directive 2014/24/EU and may render the contract void.

Trade lots and partial lots

Public procurement law distinguishes:

Trade lots – Division by type of service (e.g. electrical, heating, plumbing works)
Partial lots – Division by quantity, location or time (e.g. cleaning North, cleaning South)

In German procurement law (§ 97 (4) sentence 3 GWB), both types must be considered; the interests of SMEs must be appropriately preserved.

Legal basis

Art. 46 Directive 2014/24/EU – Division into lots and limit on the number of lots
Art. 5 (10) Directive 2014/24/EU – 20% rule for de minimis lots
§ 97 (4) GWB – Obligation to divide into lots (DE)
§ 3 (7) VgV – Calculation of contract value with lots (DE)
§ 100 BVergG 2018 – Division into lots and obligation to give reasons (AT)
§ 13 BVergG 2018 – Estimation of contract value with lots (AT)

Related terms

FAQ

Must a contracting authority always divide into lots? In Germany, there is a general obligation to divide into lots pursuant to § 97 (4) GWB; exceptions are permissible only on economic or technical grounds and must be justified in the procurement record. A corresponding rule applies in Austria under § 100 BVergG 2018.

May a bidder bid for all lots? In principle yes, provided the contracting authority has not expressly limited the number of lots. The contracting authority may set out in the procurement documents how many lots at most may be awarded to one bidder.

How are contract values summed in division into lots? For the threshold check, the total value of all lots is added together. The so-called 20% rule permits lots with an individual value of up to EUR 80,000 (supplies/services) to be awarded under the national procedure, provided their total value does not exceed 20% of the contract value.

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