Public Tender in Procurement Law 2026

Public tender in procurement law: the formal procedure by which contracting authorities procure supplies, works and services. EU-wide or national.

Definition: A public tender is the formal procedure by which contracting authorities open competition for a supply, works or service contract by inviting undertakings to submit tenders while complying with the statutory principles of transparency and equal treatment under public procurement law.

Last updated: January 2026 · Legal status: Directive 2014/24/EU, BVergG 2018, GWB/VgV/VOB/A

What is a public tender?

A public tender within the meaning of procurement law denotes the structured, legally regulated procedure by which a contracting authority invites undertakings to submit tenders for a specific contract. The term is the central umbrella concept of public procurement and covers every procedural step from needs assessment and the publication of the contract notice through to the award of the contract. The purpose of the public tender is to foster competition among potential contractors, to make efficient use of public funds and to ensure transparency and equal treatment of all tenderers.

In its broader sense, "public tender" is often used synonymously with the entire procurement procedure. In its narrower, technical sense, it refers above all to the open or restricted procedure with a written invitation to tender. Austrian and German terminology differs slightly in its national framing, but follows the same principles of EU law.

Purpose and significance

The duty to put contracts out to tender secures the core of the European internal market: fair competition, transparency and the economical use of public funds. Without a formal tendering procedure, contracting authorities could award contracts at will, leading to favouritism, market distortions and waste of public resources. EU procurement law, as transposed by the 2014 procurement directives, therefore requires Member States to conduct a transparent tendering procedure with EU-wide publication above certain contract values (the so-called EU thresholds).

Public procurement in the EU has an annual volume of several trillion euros. Public tenders are therefore not only a legal obligation but also a central instrument of economic policy.

Types of public tender

EU-wide tender (above thresholds)

The EU-wide tender is the standard form of public procurement for contracts exceeding the thresholds set by EU law. It is governed by Directive 2014/24/EU (classical sector) as well as Directives 2014/25/EU (utilities) and 2014/23/EU (concessions). Contracting authorities are required to publish a TED notice (Supplement to the Official Journal of the European Union, TED – Tenders Electronic Daily) so that undertakings from all EU Member States have the opportunity to apply or submit a tender.

Current EU thresholds (as of 2024/2025):

Contract type	Public contracting authorities	Utilities
Supply contracts	EUR 143,000	EUR 443,000
Service contracts	EUR 143,000	EUR 443,000
Works contracts	EUR 5,538,000	EUR 5,538,000

National tender (below thresholds)

Below the EU thresholds, national procurement rules apply; they are aligned with the European principles but contain less stringent formal requirements. Tenders below the EU thresholds are advertised nationally, for instance via procurement platforms or official gazettes. In Austria, the BVergG 2018 also applies below thresholds; in Germany, the UVgO governs supply and service contracts and the VOB/A governs construction works.

Open tender

In an open tender (open procedure) an unlimited number of undertakings may submit tenders. There is no pre-selection of tenderers. All interested undertakings can access the procurement documents and participate in the competition. The open tender is the most transparent and most frequently used format above thresholds.

Restricted tender

The restricted tender is a two- or multi-stage procedure in which the contracting authority first collects requests to participate and subsequently invites only selected undertakings to submit a tender. Above thresholds, it corresponds to the restricted procedure (Art. 28 Directive 2014/24/EU). The number of undertakings to be invited is typically capped by a minimum and a maximum (at least five above thresholds).

Procedural steps of a public tender

A public tender follows a statutorily structured sequence that secures equal treatment of all tenderers.

Needs assessment and specifications – The contracting authority defines the procurement need and prepares a detailed specification.
Notice – Above thresholds, publication in TED; below thresholds, nationally.
Provision of procurement documents – All tenderers receive the same documents.
Tender period – Tenderers submit their bids by the deadline.
Opening and examination of tenders – Formal and substantive examination of bids.
Evaluation of tenders – Application of the award criteria set out in advance.
Award decision and notification – The contract is awarded to the most economically advantageous tender; all tenderers are informed.
Standstill period – Before contract conclusion, unsuccessful tenderers must be given sufficient time to lodge a review (at least 15 days, Art. 2b Remedies Directive 89/665/EEC).

Legal framework

The law governing public tendering is based on a multi-layered framework of EU directives, national legislation and subordinate rules.

Directive 2014/24/EU – Classical procurement (public contracting authorities)
Directive 2014/25/EU – Utilities procurement
Directive 2014/23/EU – Concession contracts
Directive 89/665/EEC as amended by Directive 2007/66/EC – Remedies

National implementation

Austria (BVergG 2018)

In Austria, the law governing public tendering is laid down in the Federal Procurement Act 2018 (BVergG 2018, BGBl. I No. 65/2018). The Act distinguishes between the above-thresholds regime (OSB) and the below-thresholds regime (USB). Above thresholds, the European minimum time limits and transparency obligations apply without restriction. Below thresholds, simplified procedures are possible. Procurement documents must in principle be made available electronically (§ 83 BVergG 2018). Austria's principal publication platform is the Lieferanzeiger system as well as the European TED platform above thresholds.

Germany (GWB / VgV / UVgO / VOB)

In Germany, public tendering above thresholds is governed by the Act against Restraints of Competition (GWB, §§ 97 et seq.) and the Procurement Ordinance (VgV). Works contracts are additionally governed by VOB/A (Award and Contract Regulations for Construction Works). Below thresholds, the Sub-threshold Procurement Ordinance (UVgO) governs supply and service contracts. Publication is via the German Procurement Portal (DTVP, e-procurement platforms) and, above thresholds, via TED.

Related terms

FAQ

What is the difference between a public tender and a procurement procedure? The term "public tender" refers above all to the well-known formats (open or restricted tender), while "procurement procedure" is the umbrella term for all procedure types, including the negotiated procedure, competitive dialogue and innovation partnership.

From what value must a tender be published EU-wide? As soon as the estimated contract value exceeds the EU thresholds – currently EUR 143,000 (net) for supply and service contracts of public contracting authorities.

Where are EU-wide tenders published? In the Supplement to the Official Journal of the European Union, accessible electronically via the TED platform (Tenders Electronic Daily).

Can a contracting authority withdraw a published tender? Yes, withdrawal is possible under certain conditions (e.g. if no economically viable tender has been submitted), but it must be justified and made public.

What happens if the duty to tender is ignored? An unlawful direct award (a "de-facto award") can be challenged by overlooked tenderers before the competent procurement review body. Consequences range from declaring the contract void to claims for damages.

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