Procurement Acceleration Reform 2026: What Changed

What the procurement acceleration reform is

Public procurement in Germany has long been criticised as slow, document-heavy and risk-averse. With large federal investment programmes in infrastructure, climate neutrality and defence, the federal government made procurement acceleration a priority. The result is the Act to Accelerate the Award of Public Contracts (Vergabebeschleunigungsgesetz).

According to the Federal Government's summary, the Bundestag passed it on 23 April 2026, the Bundesrat approved it on 8 May 2026, it was published in the Federal Law Gazette on 18 May 2026 and it entered into force on 1 July 2026. Two related administrative regulations adopted by the cabinet also took effect on 1 July 2026, and an evaluation is planned for 2027.

The procurement acceleration reform is not a complete rewrite of procurement law. It amends the GWB and the procurement ordinances in targeted areas: division into lots, simplified procedures for lower-value contracts, reduced proof requirements, more digital communication, faster review proceedings and a basis for sustainability requirements. It sits alongside two other 2026 laws that change procurement practice: the Federal Collective Pay Compliance Act (Bundestariftreuegesetz) and the new Bundeswehr Procurement Acceleration Act.

This article summarises the main changes and what they mean for bidders and contracting authorities. It reflects the consolidated texts available on gesetze-im-internet.de and the Government's summary as of November 2026.

Lots: the principle and the new exceptions

German procurement law traditionally requires contracts to be divided into lots by quantity and by trade (§ 97a(1) GWB), to give small and medium-sized enterprises (SMEs) access. Lots may be combined if economic or technical reasons require it (§ 97a(2) GWB). The reform keeps that principle but adds an important exception:

• lots may also be combined if time reasons require it for infrastructure projects whose estimated value reaches at least twice the relevant EU threshold, and which are either financed from the special fund for infrastructure and climate neutrality or concern transport infrastructure – railway infrastructure, federal trunk roads, federal waterways and airfields (§ 97a(3), (4) GWB);
• where lots are combined, contracting authorities may require the contractor to give particular consideration to SMEs when awarding subcontracts (§ 97a(5) GWB);
• the Federal Government must report to the Bundestag on the effects of the new exception by 30 September 2027 (§ 97a(6) GWB).

For general contractors and consortia, the exception opens opportunities for larger packages, including design-and-build models. For SMEs, it means more subcontracting and fewer direct awards on large infrastructure projects; the SME consideration requirement and subcontracting rules become more important.

Practical consequences for infrastructure tenders

For contracting authorities, the new exception is not automatic. The authority must show that time reasons require a combined award – for example because coordinating many separate trades would delay a bridge or railway project financed from the special fund. That reasoning should be documented in the procurement file, because competitors and SME associations may challenge combined awards before the procurement chambers. Authorities should also consider whether partial combinations, such as packaging related trades, achieve the time benefit with less impact on SMEs. For the procurement acceleration reform to work in practice, the documentation of these decisions will be as important as the legal permission itself.

Simplified procedures and lower-value contracts

A large share of public contracts falls below the EU thresholds, where budget law and administrative rules govern procurement. The Government's summary highlights two changes for federal contracts: direct awards without competitive bidding are permitted up to EUR 50,000, and negotiated procedures without a participation competition are permitted for supplies and services up to EUR 100,000 without further preconditions. The states decide on their own below-threshold rules, so values differ between federal and state contracts and between states.

The reform also reduces proof requirements and strengthens self-declarations by companies, so that evidence is required mainly from the bidder intended for award rather than from every bidder. More electronic communication is permitted during procedures. For bidders, these changes reduce the cost of participating; for authorities, they shorten procedures, but they also increase responsibility for documenting why a simplified route was chosen.

Digital procedures and documentation

The reform encourages electronic communication and simplified documentation, building on the existing obligation to use electronic means in procurement procedures above the thresholds (§ 97(5) GWB). In practice, many contracting authorities already use e-procurement platforms; the reform aims to reduce paper-based steps that remained, for example in the submission of evidence. Bidders benefit from lower transaction costs, but must keep their registrations, certificates and self-declarations up to date, because false or outdated declarations can lead to exclusion.

Faster review proceedings

Review proceedings before the procurement chambers have been a major source of delay, especially when unsuccessful bidders appealed. The reform changes two key points. If the contracting authority wins before the chamber, the ban on awarding the contract now ends when the chamber's decision is announced (§ 169(1) GWB). And if the chamber has rejected the application, an immediate appeal has no suspensive effect against the decision (§ 173(1) GWB). The authority can therefore award the contract after a successful chamber decision, even if the bidder appeals.

These changes shift the weight of procurement review to the chamber stage. Bidders must present their case fully and quickly; there is less room for strategies that rely on the appeal to keep the award blocked. For details of the procedure, see our article on procurement review proceedings.

Sustainability, lead markets and collective pay compliance

Green lead markets

According to the Government, the reform creates the legal basis for an ordinance that anchors "lead markets" for climate-friendly products – for example low-carbon steel or cement – in public procurement. Once adopted, such an ordinance could require or favour specific climate-friendly products in defined categories. Procurement can also pursue environmental, social and innovation criteria more generally, as EU law allows. Companies in energy-intensive industries should follow the ordinance closely, because public demand can be a significant market for green products and can support long-term investment decisions in low-carbon production capacity in Germany.

The Federal Collective Pay Compliance Act

Separately, the Federal Collective Pay Compliance Act (Bundestariftreuegesetz, BTTG) entered into force on 1 May 2026, with one provision following on 1 January 2028. It applies to federal public works and services contracts and concessions with an estimated value of EUR 50,000 or more, including those awarded by certain federal public undertakings, and requires federal contracting authorities to oblige contractors to grant employees working on the contract at least the working conditions set by ordinance on the basis of a collective agreement (§§ 3, 5 BTTG), with corresponding obligations for subcontractors and temporary work agencies.

Review proceedings cannot be based on the invalidity of such an ordinance unless that invalidity has been established by a final labour court decision (§ 160(2) GWB). Bidders should factor collectively agreed conditions into their pricing and subcontractor arrangements.

Defence and security procurement

Defence procurement has its own acceleration regime. The Bundeswehr Procurement Acceleration Act of 10 February 2026 (Bundeswehrbeschaffungsbeschleunigungsgesetz, BwBBG) entered into force on 14 February 2026 and expires at the end of 31 December 2035. It interprets the security exemption in Article 346 TFEU broadly, permits combined awards without lots, allows authorities to limit participation to bidders established in the EU and concentrates review at the Federal Procurement Chamber with accelerated procedures. According to the Government, the general reform also allows combined awards for security authorities' needs related to civil-military defence, with exceptions possible until 2030. Our article on defence procurement covers these rules.

For the defence industry, these rules matter as much as the general reform. Suppliers based outside the EU may find themselves excluded from Bundeswehr tenders, while EU-based suppliers face less formal procedures but also fewer opportunities to challenge awards, because review is concentrated and accelerated and defence interests generally prevail when courts weigh whether an award may proceed. Companies supplying both civilian and defence customers should check which regime applies to each contract, because the thresholds, procedures and review rights differ.

Procurement acceleration reform: what bidders and authorities should do

Bidders should review their bid strategies: larger packages on infrastructure projects may require consortia or partnerships; collective pay compliance must be reflected in prices; and review strategies must focus on the chamber stage. SMEs should position themselves as subcontractors on combined awards and check whether contracting authorities impose SME subcontracting requirements.

Contracting authorities should update templates and internal guidance, document the reasons for combining lots and for using simplified procedures, and prepare for the green lead market ordinance. Municipal authorities should check how their state's below-threshold rules have been adapted, because the federal value limits do not automatically apply to them.

Investors and project developers working with public clients should expect faster tender timetables and plan resources accordingly. Shorter procedures leave less time for forming consortia, obtaining financing commitments and preparing designs, so preparatory work should start when a project appears in an authority's pipeline rather than when the notice is published.

Transitional questions

Procedures that had already begun before 1 July 2026 are generally completed under the rules in force when they started, but contracting authorities and bidders should check the transitional provisions for each changed rule, particularly for review proceedings pending at the time of the change. Framework agreements concluded before the procurement acceleration reform remain valid; new call-offs follow the framework's terms. Where authorities want to use the new lot exception for ongoing projects, they will usually need to start a new procedure.

How TRW & Co helps

We advise bidders, contracting authorities and sector entities on the procurement acceleration reform and its practical consequences. We review tender strategies and consortium structures, update procurement documents and internal guidelines, advise on collective pay compliance and sustainability criteria, and represent clients in review proceedings. Our work connects with our public procurement and infrastructure projects practices and our article on in-house awards. Please contact us. This article is general information and not legal advice.