Sub-Threshold Procurement Regulation (UVgO) in Procurement Law

The UVgO governs the award of supply and service contracts below the EU thresholds by German federal authorities. Adopted in 2017.

Definition: The Sub-Threshold Procurement Regulation (UVgO) is the German rulebook for awarding supply and service contracts below the EU thresholds by federal authorities and contracting authorities that have to apply the UVgO by reference in funding or budgetary law.

Last updated: January 2026 · Legal basis: UVgO (Notice of 02.02.2017, BAnz AT 07.02.2017 B1); § 55 BHO; state procurement law

What is the Sub-Threshold Procurement Regulation (UVgO)?

The Sub-Threshold Procurement Regulation (UVgO) is the central procurement rulebook for supply and service contracts below the EU thresholds at federal level in Germany. It was published by the Federal Ministry for Economic Affairs and Energy on 2 February 2017 and replaced the then-applicable VOL/A Section 1.

The UVgO is not a statutory ordinance in the formal sense, but an administrative regulation that acquires binding force through references in budgetary law – in particular § 55 of the Federal Budget Code (BHO) in conjunction with the General Administrative Provisions to the BHO (VV-BHO). It applies directly to federal authorities. It is not binding on the federal states or municipalities; they may adopt their own sub-threshold rules or declare the UVgO binding under state law.

For works contracts below the EU thresholds, VOB/A Section 1 continues to apply – not the UVgO.

Significance and function

The UVgO closes the regulatory gap below the EU thresholds and ensures that even lower-value contracts are awarded under transparent and competition-based principles.

Key regulatory areas of the UVgO:

Procedure types – Open invitation to tender, restricted invitation to tender with and without competitive participation, negotiated award with and without competitive participation, direct award (§§ 8–12 UVgO)
Value thresholds – Direct award up to EUR 1,000 (net); restricted invitation to tender without competitive participation up to EUR 50,000 (net) for supplies/services; the precise value thresholds may be specified in administrative provisions issued by the respective procurement authorities
E-procurement obligation – From a contract value of EUR 25,000 (net), electronic submission of bids is mandatory (§ 38 (1) UVgO); for direct awards and smaller contracts it is a "should" rule
Suitability check – Requirements for the suitability and reliability of bidders (§§ 33–36 UVgO)
Award criteria – Most economically advantageous tender; value for money (§ 43 UVgO)
Documentation – Procurement note and documentation duties (§ 6 UVgO)

Relationship to funding law and state law

Recipients of federal grants are regularly required by the General Ancillary Provisions for Grants (ANBest-P, ANBest-GK) to apply the UVgO, even if they are not themselves federal authorities. A number of federal states have incorporated the UVgO into their state procurement law or declared it correspondingly applicable.

Legal basis

The UVgO sits outside the GWB procurement regime and derives its binding force solely from budgetary and funding law.

§ 55 BHO – Requirement to invite tenders for supplies and services
VV-BHO No. 55.1 – Reference to the UVgO as the procurement code to be applied
UVgO (BAnz AT 07.02.2017 B1) – Substantive procurement rulebook
ANBest-P / ANBest-GK – Binding on grant recipients

The GWB and the VgV are generally not applicable in the sub-threshold range. However, the general principles of procurement law – transparency, competition, equal treatment – must also be observed in sub-threshold procurements, as the Federal Court of Justice (BGH) and the Federal Constitutional Court (BVerfG) have repeatedly confirmed.

Austrian equivalent

In Austria, sub-threshold procurements are governed by the BVergG 2018, which covers both the above-threshold and the sub-threshold range in a single statute. §§ 46 et seq. BVergG 2018 (sub-threshold range) provide for simplified procedures such as direct award and restricted invitation to tender without notice, whose use depends on the type and value of the contract.

Related terms

FAQ

Does the UVgO also apply to municipalities? No, the UVgO applies directly only to federal authorities. Municipalities and federal states can declare the UVgO binding under state law or adopt their own sub-threshold rules. Recipients of federal grants are usually required to apply it under the ANBest-P/GK.

From what value does the e-procurement obligation under the UVgO apply? Under § 38 (1) UVgO, electronic communication including the electronic submission of bids is mandatory from a contract value of EUR 25,000 (net). Below this threshold, it is a "should" rule.

What applies to works contracts below the EU thresholds? For works contracts in the sub-threshold range, VOB/A Section 1 continues to apply – not the UVgO. The UVgO applies exclusively to supply and service contracts.

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