Procurement Procedure under Procurement Law 2026
Overview of procurement procedures: All types of procedure in public procurement – open procedure, negotiated procedure, competitive dialogue and more.
Definition: A procurement procedure is the legally regulated, formalised process by which a public contracting authority awards a supply, works or services contract to an undertaking in accordance with the principles of competition, transparency and equal treatment.
Last updated: January 2026 · Legal status: Directive 2014/24/EU, BVergG 2018, GWB/VgV/UVgO/VOB
What is a procurement procedure?
A procurement procedure within the meaning of EU procurement law is the entirety of all legally required steps that a public contracting authority must go through from needs assessment to contract award and the conclusion of the contract. Procurement law specifies which type of procedure is to be applied when, which deadlines must be observed, and how undertakings are to be selected and bids evaluated. The procurement procedure is not a discretionary administrative procedure but a strictly regulated process with clear legal consequences in the event of infringements.
The term covers all the types of procedure in Directives 2014/24/EU, 2014/25/EU and 2014/23/EU and their national transpositions in Austria (BVergG 2018) and Germany (GWB, VgV, UVgO, VOB/A).
Purpose and importance
The procurement procedure serves to protect the public interest in the efficient and transparent use of taxpayers' money and to protect bidders against arbitrary or discriminatory treatment. The duty to conduct a formal procurement procedure follows from the fundamental freedoms of the internal market and the obligation of the Member States to enable cross-border competition. Procurement procedures protect not only public contracting authorities against liability risks but also create legal certainty for undertakings seeking contracts.
Overview: all types of procedure
EU procurement law recognises five types of procedure, applied according to the type of contract, contract value and complexity of the procurement project.
| Type of procedure | EU legal basis | Number of bidders | Typical use case |
|---|---|---|---|
| Open procedure | Art. 27 Dir. 2014/24/EU | Unlimited | Standard case above threshold |
| Restricted procedure | Art. 28 Dir. 2014/24/EU | At least 5 | Complex services, confidentiality |
| Negotiated procedure | Art. 29–30 Dir. 2014/24/EU | At least 3 | Innovative or complex contracts |
| Competitive dialogue | Art. 30 Dir. 2014/24/EU | Variable | Particularly complex projects |
| Innovation partnership | Art. 31 Dir. 2014/24/EU | At least 3 | R&D contracts with market novelty |
Open procedure
The open procedure is the default type of procedure in the above-threshold area and allows an unlimited number of undertakings to submit bids. It is single-stage, transparent and creates the broadest competition. The minimum bid period is 35 days (Art. 27(1) Directive 2014/24/EU). The open procedure corresponds to the "open invitation to tender" in national law.
Restricted procedure
The restricted procedure is two-stage: undertakings first apply to participate, then the contracting authority invites selected candidates to submit bids. The contracting authority selects at least five participants and may only invite undertakings that meet the suitability criteria to submit bids (Art. 28 Directive 2014/24/EU). Price negotiations are not permitted.
Competitive procedure with negotiation (with prior publication)
The negotiated procedure with prior publication allows the contracting authority to negotiate with selected bidders about their bids in order to achieve the best possible outcome. It is admissible only under the conditions exhaustively set out in Art. 26(4)(a) of Directive 2014/24/EU, for example where:
- the contracting authority's needs cannot be met without adaptation of readily available solutions,
- the works or services involve intellectual work that cannot be specified in advance,
- a prior open or restricted procedure ended without regular bids.
Negotiated procedure without prior publication
The negotiated procedure without prior publication is an exceptional regime that may be used only under strictly regulated conditions (Art. 32 Directive 2014/24/EU). Typical use cases are absolute urgency arising from unforeseeable events, procurement that for technical reasons can only be supplied by a particular undertaking (single source), or where a previous procedure did not lead to a result.
Competitive dialogue
Competitive dialogue is a type of procedure for particularly complex contracts in which the contracting authority is not yet able to determine the optimal technical, legal or financial means of meeting its needs. In a structured dialogue with selected undertakings, solution concepts are developed before bids are requested (Art. 30 Directive 2014/24/EU). Typical use: large infrastructure projects, PPP schemes.
Innovation partnership
The innovation partnership is a type of procedure specifically designed for research and development projects, which combines the development and the subsequent procurement of an innovative service in a single procedure (Art. 31 Directive 2014/24/EU). The contracting authority enters into a structured partnership with one or more undertakings in order to develop and procure a solution not available on the market.
When each procedure is admissible
Procurement law sets out clear conditions of admissibility for each type of procedure; infringements may render the contract void.
The open and restricted procedures are admissible without any specific justification. All other types of procedure require statutorily defined exceptional grounds. Contracting authorities bear the burden of proof for the existence of these conditions.
Thresholds and the duty to conduct a procedure
The duty to conduct a formal procurement procedure depends on the estimated contract value. Below the EU thresholds, national procurement rules apply; above them, the European requirements, including a TED notice, are binding.
| Type of contract | EU threshold (2024) |
|---|---|
| Supply and service contracts (central government) | EUR 143,000 |
| Supply and service contracts (other public contracting authorities) | EUR 221,000 |
| Works contracts | EUR 5,538,000 |
Legal basis
The law on procurement procedures is based on EU primary law (Art. 18 TFEU) and the 2014 procurement directives and their national transposing acts.
- Art. 26–32 Directive 2014/24/EU – types of procedure in the classical sector
- Art. 18 Directive 2014/24/EU – procurement principles (equal treatment, transparency, proportionality, mutual recognition)
- Art. 4 Directive 2014/24/EU – thresholds
National transposition
Austria (BVergG 2018)
In Austria, the Federal Procurement Act 2018 (BVergG 2018, BGBl. I No 65/2018) regulates the types of procedure for both the above- and the sub-threshold area. In the above-threshold area (§§ 105 et seq. BVergG 2018), the European types of procedure are fully transposed. In the sub-threshold area (§§ 36 et seq. BVergG 2018), simplified procedures are available: open invitation to tender, restricted invitation to tender with notice, restricted invitation to tender without notice, direct award with prior notice, and simple direct award.
Austria also has a sub-threshold regime under a federal government ordinance which, for certain contracting authorities (federal contracting authorities), sets different value thresholds.
Germany (GWB / VgV / UVgO / VOB)
In Germany, for procurement procedures in the above-threshold area, the GWB (§§ 97 et seq.) applies in conjunction with the Procurement Ordinance (VgV) for supply and service contracts and VOB/A (Section 2) for works contracts. The VgV transposes Directive 2014/24/EU and expressly names the types of procedure in §§ 14 et seq. In the sub-threshold area, the UVgO regulates the procurement of supplies and services; for works, VOB/A Section 1 applies.
Important difference from Austrian law: in the sub-threshold area, Germany has no self-standing statutory basis applicable to all contracting authorities. The UVgO applies only where the contracting authority concerned has declared it binding (by decree or ordinance of the Länder).
Related terms
FAQ
Which procurement procedure is the most common? The open procedure is by far the most common procurement procedure in the above-threshold area, as it is admissible without any specific justification and is the most conducive to competition.
Can a contracting authority freely choose which procedure to conduct? No. The open and restricted procedures are freely available. All other types of procedure require statutorily defined exceptional grounds. An incorrect choice of procedure is a serious breach of procurement law.
What is the difference between a procurement procedure and a tender? "Procurement procedure" is the umbrella term for all types of procedure. "Tender" in the narrower sense denotes the open or restricted invitation to tender, but in colloquial usage is often used synonymously for the entire procurement procedure.
What happens in the case of a flawed procurement procedure? Bidders may challenge the procurement procedure before the competent review body (in AT: Federal Administrative Court / Procurement Control Commission; in DE: procurement chambers). Possible legal consequences include the setting aside of the procedure, prohibition of the award, or damages.
Must all public contracting authorities conduct procurement procedures? Yes, where the statutory thresholds are reached. Public contracting authorities are territorial authorities (federal, Land, municipal) and all bodies governed by public law within the meaning of Art. 2(1)(4) Directive 2014/24/EU.
Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in procurement law.
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