Value Thresholds in Procurement Law

Value thresholds are national contract value limits below the EU thresholds that determine which simplified procurement procedure is permissible.

Definition: Value thresholds are national – and in part regionally differentiated – contract value limits below the EU procurement thresholds that determine which simplified procurement procedure – direct award, negotiated procedure or open tender – may be applied for a given contract volume.

Last updated: January 2026 · Legal basis: §§ 41 et seq. BVergG 2018, UVgO, VOB/A

What are value thresholds?

Value thresholds are the national counterparts to the EU thresholds: they regulate procurement law in the so-called below-threshold area – that is, contracts whose value lies below the EU procurement thresholds. Depending on the contract value, the contracting authority may use a more or less simplified procedure: from direct award for very small contracts to open tender for larger procurements in the below-threshold area.

The exact value thresholds vary by contract type (supply, service or works contract), by category of contracting authority and – particularly in Germany – by federal state.

Significance in the procurement procedure

Value thresholds are the most important control instrument in below-threshold procurement law: they determine how elaborate the procurement procedure must be for a specific project.

Austria

In Austria, the value thresholds are set out in the BVergG 2018 (§§ 41 et seq.). The most important thresholds for the below-threshold area (supplies and services):

Direct award: up to EUR 100,000 (net)
Negotiated procedure without prior publication: up to EUR 221,000 (net)
Restricted procedure without prior publication: up to EUR 221,000 (net)
Open tender: generally mandatory from the relevant thresholds

Different, generally higher, thresholds apply to works contracts.

Germany

In Germany, below-threshold procurement law is less uniformly regulated. The Sub-threshold Procurement Regulation (UVgO) applies to supplies and services, while VOB/A governs works. In addition, the federal states issue their own procurement acts, which in some cases provide for deviating value thresholds. Typical thresholds (federal law, disregarding state law variations):

Direct contract (UVgO): up to EUR 1,000 (net)
Negotiated award without competitive bidding: up to EUR 25,000 (net)
Restricted tender without competitive bidding: up to EUR 100,000 (net)
Open tender: mandatory from EUR 100,000 (net)

Variations under state law are possible and frequent; contracting authorities must always observe the applicable state law requirements.

Related terms

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