Restricted Procedure in Public Procurement
Restricted procedure: only selected undertakings may submit bids; preceded by a call for competition, with at least five candidates. Art. 28 Directive 2014/24/EU, § 46 BVergG 2018.
Definition: The restricted procedure is a two-stage type of award procedure in which the contracting authority, following a public call for competition, invites only a limited number of suitable candidates — at least five — to submit bids; no further undertakings may submit bids.
Last updated: January 2026 · Legal basis: Art. 28 Directive 2014/24/EU, § 46 ff. BVergG 2018, § 16 VgV
What is the restricted procedure?
The restricted procedure is the two-stage counterpart to the single-stage open procedure: first, all interested undertakings can apply in the call for competition; then only the selected candidates receive the invitation to tender. Unlike the open procedure, in which bid submission is open to all market participants, participation in the bidding phase of the restricted procedure is limited to a pre-selected group of suitable undertakings.
This restriction is not arbitrary but the result of a transparent suitability assessment as part of the upstream call for competition. All interested undertakings can apply in the call for competition; only the most suitable are invited to bid.
In Germany the restricted procedure is also referred to as the "limited procedure" (§ 16 VgV); in Austria it is set out in the BVergG 2018 as "restricted procedure with prior notice".
Significance and function
The restricted procedure is particularly suitable where unrestricted participation by all market players is not meaningful — for example because bid preparation is costly or only a limited number of undertakings can meet the specific requirements. Restriction to suitable candidates increases the efficiency of the procedure and reduces the burden on all parties involved.
At the same time, the restricted procedure ensures genuine competition: the minimum number of five candidates (Art. 65(2) Directive 2014/24/EU) prevents competition from being narrowed to a few suppliers.
The restricted procedure is particularly suited to:
- Complex construction projects with specific technical requirements
- Specialist services involving high bid-preparation effort
- Procurements where only a limited number of undertakings can meet the suitability requirements
Procedural sequence
The restricted procedure is divided into two clearly separated stages: the public call for competition and the subsequent restricted bidding phase.
Stage 1 – call for competition: The contracting authority publishes a contract notice setting out the suitability requirements and the intended number of candidates. All interested undertakings may submit a request to participate. The contracting authority assesses the suitability of all candidates and selects from those deemed suitable at least five to be invited to tender. Unselected candidates are informed.
Stage 2 – bidding phase: The selected candidates receive the full procurement documents and are invited to submit a bid. No further undertakings can join at this stage. The bids are evaluated against the award criteria defined in advance.
Time limits
The restricted procedure is subject to clear minimum time limits:
| Phase | Time limit |
|---|---|
| Request to participate | At least 30 days from publication of the notice |
| Bid submission | At least 30 days from invitation |
| Urgency (participation) | At least 15 days |
| Urgency (bid) | At least 10 days |
Legal basis
The restricted procedure is set out in Art. 28 of Directive 2014/24/EU and transposed in the national procurement laws of Austria and Germany.
- Art. 28 Directive 2014/24/EU – Restricted procedure
- Art. 65 Directive 2014/24/EU – Reduction of the number of candidates
- § 46 ff. BVergG 2018 – Restricted procedure with prior notice (Austria)
- § 16 VgV – Restricted procedure (Germany)
- § 3a EU VOB/A – Restricted procedure for works contracts (Germany)
Distinction from the open procedure
| Feature | Restricted procedure | Open procedure |
|---|---|---|
| Stages | Two-stage | Single-stage |
| Number of bidders | Limited (min. 5) | Unlimited |
| Pre-selection | Yes (after call for competition) | No |
| Bid time limit | At least 30 days | At least 35 days |
| Typical use | Complex, specialised | Standard case |
Related terms
- Call for competition
- Open procedure
- Pre-qualification
- Public procurement law
- Contracting authority
- Bid deadline
- Tender
- Direct award
FAQ
When may the contracting authority use the restricted procedure? In Germany and under EU law, the restricted procedure may be used in the above-threshold range without special justification — it is on equal footing with the open procedure as a standard type of procedure (Art. 26(1) Directive 2014/24/EU). The same applies in Austria under § 46 BVergG 2018.
What happens if fewer than five suitable candidates are available? The contracting authority may continue the procedure with the remaining suitable candidates, even if the minimum of five is not reached. However, it may not include unsuitable candidates to make up the minimum number.
Can variant bids be submitted in the restricted procedure? Yes, provided the contracting authority has expressly authorised them in the contract notice or the procurement documents (Art. 45 Directive 2014/24/EU).
Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialising in public procurement.
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