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Procurement Law 2026: What's actually changing, and why it matters now
New rules for public tenders took effect in January. Lower thresholds, drastically simplified procedures and a digital overhaul, we break down what this actually means for your business.
Auftrag One Team··4 min read
Changes ahead in procurement law
Public tenders aren't exactly watercooler conversation at industry events. But what's shifted in procurement law since January 2026 deserves attention from businesses, especially smaller and mid-market companies for whom the public sector previously seemed too complicated.
We've summarized the key changes and their implications.
New EU thresholds, seemingly small, practically significant
On January 1, 2026, the EU Commission adjusted thresholds for public contracts with small downward corrections:
- Construction contracts: €5,538,000 to €5,404,000
- Supplies and services (federal agencies): €143,000 to €140,000
- Supplies and services (municipalities, states): €221,000 to €216,000
The changes seem marginal on first glance. In practice: contracts previously just under the EU threshold now must be tendered Europe-wide. This brings more transparency and competition, and creates access for alert companies to contracts previously awarded regionally.
The real change: Simplified procurement below threshold
The lowered EU thresholds are one thing. The bigger shift happens below, in the sub-threshold space.
New value limits per § 3a VgV:
- Restricted procurement (without pre-qualification): up to €150,000 net
- Direct contracting: up to €100,000 net
- Small contracts: up to €50,000 net
For perspective: the direct contracting limit used to be €10,000, it just got multiplied by 10. This is no cosmetic update, it fundamentally changes how municipalities and agencies procure daily. Trades and specialized service providers especially stand to benefit, as contracting authorities can now engage suppliers faster and less bureaucratically.
Less red tape via the Procurement Acceleration Act
In August 2025, parliament passed the Procurement Acceleration Act. Goal: public tenders should move faster and consume less administrative effort.
Three core points:
- Reduced documentation requirements, for both contracting authorities and bidders
- Raised thresholds for simplified procedures
- Digital standard forms instead of customized eligibility documentation
Additionally, a unified procurement code should exist by end-2026, consolidating the various federal rulesets. Firms that previously had to navigate VOB, UVgO, VgV and GWB in parallel will welcome this simplification.
Digitalization: Real momentum building
Government digitalization has been debated in Germany for years. Now it's taking concrete form in procurement. The ministerial conference launched several initiatives in December 2025:
- A central digital procurement platform for federal, state and municipal governments
- Unified e-forms for self-declarations and documentation
- A common e-invoicing platform for public administration
- The "Digital Marketplace Germany", an AI-powered procurement platform planned for end-2027
Whether the ambitious timeline holds remains to be seen. The direction is clear: AI will increasingly support tender analysis, risk assessment and compliance, an approach we're already implementing at Auftrag One.
Sustainability as a procurement requirement
What was a bonus in scoring years ago is becoming a hard requirement. Public contracting authorities must now integrate sustainability criteria into tender procedures:
- The Circular Economy Act mandates use of recyclable materials
- The Climate Protection Act sets binding emissions targets
- The Clean Vehicles Procurement Act requires low-emission vehicles
- AVV Climate governs climate-friendly service procurement
Alongside this, lifecycle costs increasingly replace pure price comparison. Firms that can document sustainability performance, through certifications, reports or documented measures, gain measurable competitive advantage.
NRW: More flexibility for municipalities
North Rhine-Westphalia's new § 75a GO NRW brings a notable shift. Previously binding municipal procurement principles are eliminated. Now only general principles apply, cost-effectiveness, equal treatment, transparency.
This gives municipalities more flexibility in designing procedures. The flip side: it becomes more inconsistent regionally. What Cologne does differently than Düsseldorf. For companies active across multiple NRW municipalities, close review of individual ordinances pays off.
Outlook: EU-wide reform starting 2027
At European level, the Commission is preparing comprehensive reform of procurement directives. Following public consultation in spring 2025, clear priorities emerged:
- Simplified procedures, especially for SMEs
- Stronger alignment with climate and industrial goals
- Greater transparency via the new Public Procurement Data Space
- More consistent digitalization
Concrete directives should arrive around 2027, firms that engage with current changes now will be well-positioned.
What this means for your business
Public procurement in the EU covers roughly €2 trillion annually, about 13.6% of total EU GDP. In Germany alone, an estimated €500 billion flows through public contracts, with roughly 58% at municipal level.
2026 changes make access easier in many places. Simultaneously, digital competence and sustainability documentation requirements rise. Firms combining both, plus staying informed about relevant tenders, have the best odds.
Our advice: don't wait to act, do it now. The right tenders won't find themselves, but with proper support, research effort drops significantly.
This article provides general information and does not substitute for legal advice. For specific procurement law questions, consult a specialized attorney.