Small-Lot Rule in Procurement Law 2026

Definition: The small-lot rule is a simplification provision in procurement law under which individual lots of a contract which do not exceed certain absolute and relative value thresholds may be exempted from the application of EU procurement law or awarded under simplified procedures, even where the total value of the contract exceeds the EU thresholds.

Last updated: January 2026 · Legal status: Directive 2014/24/EU Article 5(10); BVergG 2018 § 14 para. 11; GWB/VgV § 2 para. 7

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What is the small-lot rule?

The small-lot rule serves as a practical simplification for contracting authorities that have divided an overall contract into many lots, some of which have very small individual values. Without the small-lot rule, the full EU procurement procedure would have to be carried out for each small contract component – where the total value of the contract exceeds the EU thresholds – which would be disproportionate to the economic value involved.

Specific value thresholds

Under Article 5(10) of Directive 2014/24/EU, lots with a value below EUR 80,000 (supplies/services) or EUR 1,000,000 (works) may be exempted from EU procurement law, provided that the aggregate value of such lots does not exceed 20 % of the total contract value.

The same rule is implemented in Germany in § 2 para. 7 VgV. In Austria, a corresponding provision is found in § 14 para. 11 BVergG 2018.

Purpose and relationship to division into lots

The small-lot rule stands in tension with the principle of division into lots for the support of SMEs. On the one hand, division into lots is intended to open up competition to smaller companies; on the other, the small-lot rule is intended to limit the administrative burden in respect of economically insignificant components. The two rules complement one another: contracting authorities divide the contract into lots (SME support) and can then award very small lots under simplified procedures (small-lot rule).

Related terms

• Lots
• Small and Medium-Sized Enterprises (SMEs)
• Direct Award

FAQ

Does the small-lot rule apply to procurement below the EU thresholds, too? In the below-threshold sphere, simplified procedures generally apply in any event, so the small-lot rule is less relevant there. The specific EU small-lot rule relates to the above-threshold sphere.

May the contracting authority actively plan for the use of the small-lot rule? Yes, contracting authorities may take into account, when designing lots, that certain lots will not exceed the small-lot thresholds and may therefore be awarded under simplified procedures. An intention to circumvent the rules (artificial splitting of a contract) would, however, be impermissible.

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