Procurement Law Reform 2016 – Modernisation of German and European Procurement Law

Procurement law reform 2016: transposition of EU Directives 2014/24/EU, 2014/25/EU and 2014/23/EU. Key changes for contracting authorities and bidders at a glance.

Definition: The 2016 procurement law reform is the fundamental modernisation of German and European public procurement law through the transposition of the three EU procurement directives of 2014 (Directives 2014/24/EU, 2014/25/EU, 2014/23/EU) into German law, which entered into force on 18 April 2016.

Last updated: January 2026 · Legal basis: Procurement Law Modernisation Act (VergRModG) of 17 February 2016, Federal Law Gazette I p. 203

Background of the Reform

The 2016 procurement law reform was the most extensive change to German procurement law in decades and the result of a far-reaching reform of EU procurement law. On 26 February 2014, the European Parliament and the Council had adopted a package of three procurement directives that the Member States had to transpose into national law by 18 April 2016. The objectives of the reform were:

Simplification and flexibility in procurement procedures
Strengthening of strategic procurement (environment, social, innovation)
Improving SME access and SME-friendly procurement
Modernisation through mandatory electronic procurement
Clearer rules on public-to-public cooperation

The Three New Directives

The reform is based on three new procurement directives:

Directive 2014/24/EU (Public Procurement Coordination Directive): Replaces Directive 2004/18/EC for classical public contracting authorities
Directive 2014/25/EU (Utilities Directive): Replaces Directive 2004/17/EC for utilities contracting entities
Directive 2014/23/EU (Concessions Directive): The first standalone EU regime for the award of concessions

Transposition in Germany

Germany transposed the reform through the Procurement Law Modernisation Act (VergRModG) of 17 February 2016. The VergRModG fundamentally amended Part 4 of the GWB and empowered the Federal Government to adopt new procurement ordinances. At the same time, the following entered into force:

Procurement Ordinance (VgV): Replaced VOL/A Section 2 and VOF
Utilities Ordinance (SektVO): Replaced SektVO 2012
Concession Award Ordinance (KonzVgV): First standalone KonzVgV
Defence and Security Procurement Ordinance (VSVgV): Overhaul
VOB/A: Revised EU Section 2

Key Substantive Changes

New Procedural Types

The reform introduced new types of procedure, in particular the innovation partnership (Art. 31 Directive 2014/24/EU, § 19 VgV) as a procedure for procuring innovative products and services not yet available on the market.

Strategic Procurement

The reform strengthened the consideration of environmental, social and innovation aspects in procurement law. Contracting authorities are entitled and expected to:

Include life-cycle costs (including environmental costs) as an award criterion
Lay down social and environmental performance conditions
Promote innovation through suitable award criteria

Electronic Procurement

The obligation to handle procurement procedures fully electronically was introduced. From April 2018 (highest federal authorities) and October 2018/April 2019 (all other public contracting authorities), procurement documents had to be provided electronically and tenders submitted electronically.

In-house Award and Public-to-public Cooperation

The reform codified the CJEU case law on in-house awards (§ 108 GWB) and on public-to-public cooperation (§ 108(6) GWB), creating greater legal certainty for complex public cooperation structures.

ESPD (European Single Procurement Document)

The European Single Procurement Document (ESPD) was introduced as a standardised form for declarations of suitability, reducing the administrative burden on bidders in cross-border procurements.

SME Support

The reform expressly required contracting authorities to divide contracts into lots (§ 97(4) GWB) and to apply proportionality to suitability requirements, in order to facilitate SME access to public contracts.

Transposition in Austria

Austria transposed the 2014 EU directives through the Federal Procurement Act 2018 (BVergG 2018), which entered into force on 21 August 2018 – somewhat later than Germany. The BVergG 2018 essentially follows the same reform objectives and content but has its own Austrian particularities.

FAQ

What are the most important practical changes of the 2016 reform for bidders? The most important changes are: 1) the introduction of the ESPD as a standardised self-declaration; 2) the obligation to submit tenders electronically; 3) greater consideration of quality and sustainability criteria at the award stage; 4) clearer rules on bidding consortia and reliance on third-party capacities.

Have there been further reforms since 2016? Yes, smaller adjustments have been made regularly since then. A larger reform is being discussed in the form of the planned Procurement Transformation Package, which provides, among other things, for further simplification and digitalisation.

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