Restricted Tender in Procurement Law

Restricted tender: only selected undertakings are invited to submit tenders. Permissible in the below-threshold range under BVergG 2018 and UVgO.

Definition: The restricted tender is a type of procedure in public procurement law in which the contracting authority invites a limited number of suitable undertakings – with or without a prior call for competition – directly to submit tenders, without publishing the tender openly.

Last updated: January 2026 · Legal basis: BVergG 2018 §§ 46 ff., UVgO § 11, VOB/A § 3a para. 3

What is a restricted tender?

The restricted tender is a procurement type in which not all interested undertakings can submit a tender; only those specifically invited to do so by the contracting authority can. It is an exception to the principle of unrestricted publicity of tenders and is therefore subject to certain conditions laid down in national law.

The restricted tender is primarily an instrument of the below-threshold range. In the above-threshold range, its counterpart is the "restricted procedure" (Art. 28 Directive 2014/24/EU), which has its own, stricter rules.

With and without a Call for Competition

The restricted tender can be carried out with or without a prior call for competition.

With a call for competition: the contracting authority first publishes a notice inviting applications to participate. From the applications received, it selects a certain number of suitable undertakings and invites only these to submit tenders. This approach increases transparency and competition, especially where many undertakings could in principle qualify.
Without a call for competition: the contracting authority selects suitable undertakings based on its own knowledge of the market and invites them directly. This variant is simpler but carries the risk of overlooking suitable bidders and requires careful documentation of the selection decision.

Significance and Function

The restricted tender enables contracting authorities to reduce procedural effort while ensuring appropriate competition among pre-selected, capable undertakings.

It is particularly suitable for:

Contracts with specific technical requirements where only a few undertakings come into consideration
Contracts in the lower-threshold range where a fully open procedure would be disproportionate
Situations in which the contracting authority already has market knowledge

Minimum Number of Invited Undertakings

Both in Austria and in Germany, the procurement rules prescribe a minimum number of undertakings to be invited in order to ensure effective competition.

Austria (BVergG 2018): in the below-threshold range, at least three suitable undertakings must in principle be invited (§ 46 para. 2 BVergG 2018). In the above-threshold range (restricted procedure) it is at least five (§ 117 BVergG 2018).
Germany (UVgO): § 11 para. 2 UVgO requires that, as a rule, at least three candidates be invited. Pursuant to VOB/A § 3a para. 3, for construction works in the below-threshold range, at least three undertakings should likewise be invited.

Legal Basis

The restricted tender is clearly regulated in both countries; the conditions for its application must be documented by the contracting authority.

Austria

In Austria, the restricted tender is regulated in §§ 46 ff. BVergG 2018 (BGBl. I No. 65/2018). It is permissible in the below-threshold range under certain conditions, for example where the contract value is below the national thresholds or where there are objective reasons against an open tender. The selection decision as to which undertakings are invited must be made transparently and without discrimination.

Germany

In Germany, § 11 UVgO (Below-Threshold Procurement Regulation) regulates the restricted tender for supply and service contracts below the EU thresholds. For construction works, VOB/A § 3a para. 3 applies. The precondition is generally that an open tender would be inexpedient for objective reasons or that increased effort would be disproportionate to the contract value. The selection of candidates must be documented.

Related Terms

FAQ

When may a restricted tender be carried out without a call for competition? In the below-threshold range, this is permissible where there are objective reasons for it and the contracting authority documents the selection of the invited undertakings in a non-discriminatory and transparent manner. The specific conditions depend on the applicable national law (§ 46 BVergG 2018 or § 11 UVgO).

How many undertakings must be invited in a restricted tender? As a rule, at least three undertakings, in order to ensure effective competition. In the restricted procedure in the above-threshold range it is at least five.

Can an uninvited undertaking apply for review? Yes. If an undertaking takes the view that it was wrongly not invited or that the selection decision is discriminatory, it may, under certain circumstances, initiate a review procedure. The prospects of success depend on the quality of the contracting authority's documentation.

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