Sub-Threshold Contract Value 2026 – Definition and Calculation
Sub-threshold contract value: contracts below the EU thresholds. Calculation, choice of procedure and distinction from the above-threshold range.
Definition: A contract value is sub-threshold if it does not reach the relevant EU threshold for the type of contract concerned and therefore falls outside the scope of the European procurement directives.
Last updated: January 2026 · Legal basis: § 106 GWB, §§ 3–6 VgV, UVgO, VOB/A Section 1
What is a sub-threshold contract value?
The sub-threshold contract value is a purely quantitative distinction: if the estimated net contract value falls below the relevant EU threshold, sub-threshold procurement law applies. The EU thresholds are adjusted by the European Commission every two years. The values currently in force (since 1 January 2024) are:
| Type of contract | Threshold for public contracting authorities |
|---|---|
| Supply and service contracts | EUR 143,000 (net) |
| Works contracts | EUR 5,538,000 (net) |
| Social/special services | EUR 750,000 (net) |
Higher thresholds apply to utilities contracting authorities (utilities, transport, etc.).
Estimation of the contract value
Correctly estimating the contract value is decisive for choosing the right procurement procedure. Contracting authorities are required to make a realistic estimate of the likely total contract value excluding VAT – neither too low (to avoid the scope of EU law) nor too high. The following principles must be observed when estimating:
- The total contract value, including options and extensions, is decisive
- For framework agreements, the maximum value of all anticipated call-offs applies
- Contracting authorities may not artificially split contracts to circumvent thresholds (prohibition of circumvention)
- For continuing obligations (term > 4 years), the estimated total value or four times the monthly value applies
Practical significance
The sub-threshold contract value determines not only the choice of procedure but also the applicable legal regime and thus the scope of procedural requirements. In the sub-threshold range the formal requirements are lower: no obligation to publish in TED, shorter deadlines, simplified documentation. However, the fundamental procurement principles (competition, transparency, equal treatment) must be observed here too.
FAQ
May a contracting authority split a contract in order to come below the threshold? No. Artificially splitting contracts to circumvent the EU thresholds is expressly prohibited under § 3 (2) VgV and Article 5 (3) of Directive 2014/24/EU and can be challenged as an unlawful de facto award.
What happens if a contract subsequently becomes more expensive and exceeds the threshold? Subsequent cost increases that were not foreseeable at the time of award generally do not trigger a duty to redo the procedure. However, material modifications that change the character of the contract can trigger a new duty to invite tenders.
Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialised in procurement law.
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