Procurement Transformation Package 2026 – Reform of German Procurement Law

The Procurement Transformation Package modernises German procurement law: simplification, digitalisation and strategic procurement objectives at a glance.

Definition: The Procurement Transformation Package is a legislative project of the German federal government for the fundamental modernisation of public procurement law, aimed at simplifying procedures, strengthening digitalisation and integrating strategic objectives (sustainability, innovation).

Last updated: January 2026 · Legal status: GWB, VgV, draft status of the Procurement Transformation Package

What is the Procurement Transformation Package?

The Procurement Transformation Package is the most ambitious reform of German procurement law since the transposition of the EU procurement directives in 2014. The federal government anchored the project in its coalition agreement, responding to years of criticism from business and public administration: German procurement law was considered too complex, too bureaucratic and too little oriented towards strategic objectives.

At its core, the package pursues three main objectives: simplification of procedural rules, digitalisation of the procurement system, and a strengthening of strategic procurement for sustainability, innovation and social objectives.

Key reform projects

Procedural simplification

A central concern is the reduction of bureaucratic requirements, in particular in the sub-threshold area. Higher value thresholds for simplified procedures, the abolition of outdated formal requirements and a streamlining of the procurement documents are planned. Small and medium-sized enterprises (SMEs) are to gain easier access to public contracts through a reduced documentary burden.

Digitalisation

The Procurement Transformation Package drives forward the fully electronic handling of procurement procedures. The goal is a uniform electronic procurement portal that integrates notice publication, bid submission, communication and documentation. The introduction of AI-supported tools to assist procurement offices is formulated as a medium-term objective.

Strategic procurement

Public contracting authorities are to use procurement procedures even more strongly in future as an instrument for social and environmental objectives. Specifically, minimum requirements for environmental sustainability (CO₂ reduction, circular economy), social standards (collective-agreement compliance, minimum wage, gender equality) and the promotion of innovation are to be integrated into procurement law.

Status of the procedure

At the time of this update (January 2026), the Procurement Transformation Package had not yet fully entered into force. Individual rules have already been implemented in other legislative projects (e.g. collective-agreement law, sustainability requirements). The full reform of the GWB and of the subordinate ordinances (VgV, VOB, UVgO) is still outstanding.

Relevance for contracting authorities and bidders

Procurement offices must prepare their procurement processes and IT systems for the new requirements. For undertakings, both opportunities (easier access) and new requirements (sustainability evidence, collective-agreement declarations) arise.

FAQ

Does the Procurement Transformation Package also apply to Austria? No. It is a purely German reform project. In Austria there are separate efforts to reform the BVergG.

When will the Procurement Transformation Package fully enter into force? A definitive timetable was not yet in place as of January 2026. Contracting authorities should follow developments on an ongoing basis.

Must bidders already provide sustainability evidence today? In part, yes – depending on the contracting authority and the procedure, sustainability criteria are already being applied as award criteria today.

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