Two-Stage Procurement Procedure in Procurement Law

The two-stage procurement procedure separates selection and tender evaluation into two phases: call for participation and invitation to tender.

Definition: The two-stage procurement procedure is a procedural form in which, in a first stage (call for participation), the suitability of the candidates is examined, and in a second stage only the undertakings recognised as suitable are invited to submit a tender.

Last updated: January 2026 · Legal basis: Directive 2014/24/EU, BVergG 2018, GWB/VgV

What is the two-stage procurement procedure?

The two-stage procurement procedure is a procedural structure that divides the procurement process into two clearly separated phases: an upstream call for participation and a subsequent tender phase. This structure is used in various procedure types that specifically do not employ the open (single-stage) procedure.

The main two-stage procurement procedure types are:

Restricted procedure: The contracting authority publishes the tender publicly, but invites only selected candidates from the call for participation to submit a tender.
Competitive procedure with negotiation: Similar structure to the restricted procedure, but with subsequent negotiations on the content of the tenders.
Competitive dialogue: In the first stage, candidates are selected; in the second stage, solution approaches for complex contracts are discussed with them.

Significance and function

The two-stage procurement procedure allows contracting authorities to limit the bidder pool to demonstrably suitable undertakings, which reduces the examination effort during the tender phase.

Stage 1: Call for participation

In the first stage, all interested undertakings may apply to participate. The contracting authority reviews the requests to participate received on the basis of selection criteria announced in advance (economic and financial standing, technical and professional capability). Only candidates deemed suitable are admitted to the second stage. The contracting authority may limit the number of undertakings to be invited to submit a tender by setting a minimum and maximum number (e.g. minimum 3, maximum 5 candidates).

Stage 2: Invitation to tender

In the second stage, only the selected candidates (now referred to as bidders) are invited to submit a tender. Tender examination and evaluation are carried out on the basis of the award criteria set out in the procurement documents. In competitive procedures with negotiation, negotiation rounds follow before the final evaluation takes place.

Areas of application

Austria: The restricted procedure with publication is permissible in certain exceptional cases under BVergG 2018; the competitive procedure with negotiation and the competitive dialogue are also two-stage.
Germany: The restricted procedure (§ 17 VgV), the competitive procedure with negotiation (§ 17 VgV) and the competitive dialogue (§ 18 VgV) follow the two-stage principle.

Distinction from the single-stage procedure

The single-stage procurement procedure (open procedure) has no upstream selection phase: all interested parties submit their tender simultaneously, and suitability and the tender are examined in a single step. The two-stage procedure, by contrast, offers stronger pre-selection but is more burdensome and is, in its applicability, limited to statutorily defined exceptional cases.

Legal basis

The two-stage procurement procedures are regulated at European and national level.

EU: Art. 28 (restricted procedure), Art. 29 (competitive procedure with negotiation), Art. 30 (competitive dialogue) Directive 2014/24/EU
Austria: §§ 56 ff. BVergG 2018 (restricted procedure), §§ 61 ff. BVergG 2018 (competitive procedure with negotiation), §§ 165 ff. BVergG 2018 (competitive dialogue)
Germany: §§ 17–19 VgV; §§ 3a, 3b VOB/A (EU)

Related terms

FAQ

When may a contracting authority use a two-stage procedure? The restricted procedure and the competitive procedure with negotiation may only be used in statutorily defined exceptional cases (e.g. particular complexity, confidentiality requirements, no suitable tenders in a previous open procedure). The open procedure is in principle the primary option. The exact preconditions follow from the national implementing legislation and Directive 2014/24/EU.

May the contracting authority change the selection requirements between Stage 1 and Stage 2? No. The selection requirements must be set out fully and conclusively already in the contract notice for the call for participation. A subsequent change or addition of the selection requirements after the application deadline has expired is not permissible under procurement law and may result in the procedure being annulled.

How many candidates must be invited to the second stage? Under Art. 65 of Directive 2014/24/EU, in the restricted procedure at least five candidates, and in the competitive dialogue and competitive procedure with negotiation at least three candidates, must be invited, provided that sufficient suitable candidates are available. National provisions may differ; in any case, genuine competition must be ensured.

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