State Procurement Acts in Public Procurement 2026
State procurement acts: state-specific procurement rules below the EU thresholds – collective bargaining, minimum wage, sustainability obligations and differences between the federal states.
Definition: State procurement acts (Landesvergabegesetze) are the laws adopted by the German federal states governing public procurement in the below-threshold range and laying down – in addition to the federal UVgO – specific requirements such as collective-bargaining compliance, minimum-wage provisions, sustainability obligations and social standards for public contracts.
Last updated: January 2026 · Legal basis: state procurement acts of the 16 federal states; UVgO; GWB (principles)
Background: federal public procurement law in Germany
In Germany, the federal structure means that, alongside federal public procurement law (GWB/VgV in the above-threshold range; UVgO in the below-threshold range), the 16 federal states have adopted their own procurement acts setting additional requirements for below-threshold contracts. These state procurement acts diverge significantly from one another, which creates considerable complexity for bidders active throughout Germany.
In the above-threshold range, federal law (GWB/VgV) applies directly; state procurement acts apply primarily in the below-threshold range.
Typical content of state procurement acts
State procurement acts frequently contain the following regulatory areas which go beyond federal law:
Collective bargaining and minimum wage
Many state procurement acts oblige contractors to pay employees engaged in the performance of the contract at least the wages set out in the relevant collective bargaining agreements. The requirements vary considerably:
- Bavaria: No own collective-bargaining act; application of the general federal minimum-wage rules.
- Berlin, NRW, Baden-Württemberg: Strict collective-bargaining obligations also for subcontractors.
Sustainability requirements
Numerous state procurement acts prescribe the consideration of environmental and sustainability criteria, partly as a mandatory and partly as a guiding provision.
Preference for small and medium-sized enterprises
The obligation to divide contracts into lots and to give preference to SME bidders is more strongly developed in many state acts than in federal law.
Awards to social-economy undertakings
Some states provide exceptions or simplifications for sheltered workshops and social enterprises.
Overview of selected state procurement acts
| State | Act | Special features |
|---|---|---|
| NRW | Collective Bargaining and Procurement Act NRW | Strict collective bargaining, environmental criteria |
| Baden-Württemberg | LTTG BW | Collective bargaining, advancement of women |
| Bavaria | No own state procurement act | UVgO applies directly |
| Hesse | HVTG | Collective bargaining, ILO core labour standards |
| Brandenburg | BbgVergG | Minimum wage, environmental requirements |
| Berlin | Berlin Tendering and Procurement Act | Extensive social and environmental criteria |
Significance for bidders
Bidders submitting bids to public contracting authorities in various federal states must know and comply with the respective state-specific requirements. Missing evidence of collective-bargaining compliance or minimum wage may lead to exclusion from the procurement procedure. In many states, bidders must submit corresponding self-declarations and, where applicable, obtain undertakings from subcontractors.
FAQ
Does the state procurement act also apply to federal authorities in the relevant state? No, federal authorities are subject to federal law (GWB/VgV, UVgO); state procurement acts apply only to state authorities and municipal contracting authorities of the relevant federal state.
What happens if a bidder breaches the collective-bargaining obligation of a state act? This can lead to exclusion from the procedure, termination of the contract and contractual penalties; in some states, entries in public registers also apply.
Does the collective-bargaining obligation also apply to subcontractors? In many federal states, yes; the contractor must ensure that its subcontractors also comply with the collective-bargaining requirements and must obtain corresponding undertakings.
Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.
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