Restricted Tender without Call for Competition 2026

Definition: The restricted tender without a call for competition is a procurement procedure in which the contracting authority directly invites a limited number of undertakings to submit tenders – at its own discretion and without prior public notice.

Last updated: January 2026 · Legal basis: § 12 UVgO, § 3a para. 2 VOB/A, § 30 ff. BVergG 2018

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What is the restricted tender without a call for competition?

The restricted tender without a call for competition is the "little sister" of the open tender: the contracting authority selects the undertakings to be invited itself and dispenses with a public notice.

This procedure is only permissible in the below-threshold range and is particularly suited to contracts of medium volume where full market opening is not necessary or appropriate. It enables the contracting authority to carry out a quick tender limited to known, capable undertakings, without the effort of full public notice.

Procedure

The contracting authority selects a certain number of suitable undertakings from the market and invites them in writing to submit tenders.

Key procedural steps:

1. Internal needs assessment and estimation of the contract value
2. Selection of the undertakings to be invited (at least three under § 12 para. 2 UVgO)
3. Sending the procurement documents to the selected undertakings
4. Receipt and examination of the tenders
5. Evaluation and award

A notice in the official gazette or on a procurement platform is not issued. Transparency is ensured by the requirement that the selection of the undertakings to be invited must be documented in the procurement file note and that equal treatment in the invitation must be preserved.

Conditions and Limits

The restricted tender without a call for competition is only permissible under certain conditions and must not be misused to circumvent the principle of competition.

In Germany (§ 12 UVgO), the procedure requires:

• The contract value is below the threshold for an open tender
• The subject matter of the contract does not require an open tender (e.g. due to market constraints, particular confidentiality or complexity)
• At least three undertakings are invited

The procedure is impermissible:

• Where the contract value exceeds the relevant threshold
• Where the selection of undertakings artificially restricts competition
• Where the procedure is misused to favour a particular bidder

Rotation and Documentation

The contracting authority should vary the undertakings invited over time in order to avoid an impermissible preferential treatment of certain undertakings.

The practice of rotation – i.e. alternately inviting different market participants – is recommended under procurement law and is expressly required by some federal state procurement laws. The contracting authority should keep a register of bidders and provide reasons for the selection.

FAQ

What is the minimum number of undertakings to be invited? Pursuant to § 12 para. 2 UVgO, at least three undertakings. Similar requirements apply under VOB/A. A lower number is only possible in the case of demonstrated market constraints or particular urgency.

Must the contracting authority give reasons for the selection of the undertakings? Yes. The selection must be documented in the procurement file note and objectively justified. Arbitrariness or preferential treatment of particular undertakings is impermissible.

Can passed-over undertakings challenge the procedure? Undertakings that were not invited are generally unaware of the procedure and therefore have no opportunity to complain. However, if it becomes known that a procedure has been abused, supervisory authorities may intervene.

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