Sub-Threshold Negotiated Award 2026 – Procurement Procedure with Negotiation

The sub-threshold negotiated award is a procurement procedure in which the contracting authority negotiates with selected undertakings about bid content and conditions.

Definition: The sub-threshold negotiated award (also: negotiated procedure) is a type of procedure in public procurement law under which the contracting authority negotiates with one or more selected undertakings about the content, conditions and price of the contract in order to identify the most economically advantageous tender.

Last updated: January 2026 · Legal status: BVergG 2018 (§§ 34 et seq.), GWB/VgV (§§ 17, 119), Directive 2014/24/EU (Art. 26, 29, 30)

What is the sub-threshold negotiated award?

The sub-threshold negotiated award is the procurement procedure that offers the greatest flexibility to contracting authorities and bidders, but is subject to strict statutory conditions. Unlike the open procedure or the restricted procedure, contracting authorities and bidders may actively negotiate here about the content of the works, technical specifications, prices and conditions. The result is a negotiated bid that optimally matches the specific procurement needs.

In Austrian terminology, a distinction is drawn between the negotiated procedure (above-threshold area, § 34 BVergG 2018) and the negotiated award (sub-threshold area). In Germany, the GWB uses the single term negotiated procedure (§ 119(5) GWB).

Conditions for the negotiated award

The law permits the negotiated award only in clearly defined exceptional situations – it cannot be chosen freely.

In the above-threshold area (EU law)

Under Art. 26(4) of Directive 2014/24/EU, the negotiated procedure with prior publication is admissible where:

There are complex or innovative works/services that cannot be adequately procured through an open procedure
Design services (e.g. architecture) are being procured
Preceding open or restricted procedures ended without bids or with only unacceptable bids
The contract falls within defence or security (VSVgV)
There is particular urgency (negotiated procedure without prior publication)

In the sub-threshold area

More generous rules apply in the sub-threshold area. In Austria, the negotiated award is admissible in the sub-threshold area up to certain value thresholds without any specific justification.

Procedural sequence of the negotiated award

A negotiated award is typically structured in several phases:

Notice publication and call for participation – Public call for applications (in procedures with prior publication); suitability assessment of candidates
Invitation to submit initial bids – Selected candidates submit a first bid
Rounds of negotiation – The contracting authority holds discussions with bidders on services, quality, price and conditions
Final bids – After conclusion of the negotiations, the contracting authority requests binding final bids
Evaluation and award – The most economically advantageous final bid receives the contract

Limits to negotiation

The negotiated award is also subject to clear legal limits: Minimum requirements (e.g. technical standards, mandatory legal requirements) may not be undercut. The principle of equal treatment applies – all bidders must receive equivalent information. Confidential information of one bidder may not be passed on to competitors.

Distinction from the competitive dialogue

The competitive dialogue (Art. 30 Directive 2014/24/EU) is intended for particularly complex projects in which the contracting authority itself does not yet know the solution approach. In the negotiated award, the contracting authority is at least already aware of the essential specifications.

FAQ

Must the contracting authority negotiate with all bidders? No. The contracting authority may reduce the number of negotiating partners in the course of the procedure, provided it has announced this in advance.

Can the contracting authority still change minimum requirements after the negotiations? No. Once defined, minimum requirements and award criteria may no longer be changed.

How long does a negotiated award take? Depending on complexity, several weeks to several months. There is no statutorily prescribed maximum duration.

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