Public contracts have been easier for SMEs to access at federal level since 1 July 2026: Federal authorities may award contracts for supplies and services with a net value of up to 50,000 euros directly. According to the Bundesregierung (German Federal Government), this does not require a formal procurement procedure involving multiple bidders. This does not create an entitlement to a contract, as the authority still decides which suitable company to approach.

What changes under the Vergabebeschleunigungsgesetz (Public Procurement Acceleration Act)?

The Act shortens federal procurement procedures and reduces the supporting evidence required. This lowers the workload for smaller companies, for which some bids were previously not commercially viable.

Since 1 July 2026, two important thresholds have applied to federal contracts for supplies and services. Direct awards are possible up to a net value of 50,000 euros. Up to a net value of 100,000 euros, the federal government may conduct a negotiated procedure without a call for competition, as explained by the Bundesministerium für Wirtschaft und Energie (Federal Ministry for Economic Affairs and Energy).

In a negotiated procedure, the contracting authority approaches suitable companies and negotiates the tender with them. There is no preceding open application process. This requires less work than a public tender, but remains a regulated procurement procedure.

According to the German Federal Government, greater use will also be made of self-declarations. A company initially confirms itself that it meets certain requirements. Further evidence may still be required, depending on the contract.

Framework agreements should also become available for use more quickly. According to the Bundesministerium für Wirtschaft und Energie, the previous information and standstill period of 15 days no longer applies.

Which public contracts are suitable for SMEs?

Services and supplies that a federal authority needs regularly and purchases regionally or for individual sites may be of interest. These include cleaning, maintenance, repairs, temporary staffing, office equipment, transport and smaller software services.

For example, a building cleaning company could take on the regular cleaning of a local office. An electrical contractor could replace lighting. A retailer could supply office furniture or consumables. The relevant figure in each case is the estimated net contract value, which means the value excluding VAT.

However, the new threshold does not mean that a contract is awarded automatically. A contracting authority needs to know that your business offers the service, can be contacted reliably and can meet the requirements. Being visible to relevant procurement offices is therefore particularly important for direct awards.

How can a business become known as a supplier to federal authorities?

Prepare a short, specific service profile and approach relevant procurement offices directly. The authority should be able to see within a few minutes what you supply, the area in which you operate and the capacity you have available.

A useful service profile should be no more than two pages long and include:

Then look for federal authorities, federal offices, federal agencies and local branches that may require your services. A building cleaning company in Hannover does not need to approach every federal authority in Germany. It makes more sense to compile a list of sites within its regional reach and the procurement offices responsible for them.

Your website should describe the same services clearly. General statements such as comprehensive service are of little help to a procurement office. Specific information about service locations, scope and references is more useful. Support with this type of positioning is available through the structured presentation of services and references for new enquiries.

What role does electronic procurement play?

Even simplified procedures are increasingly prepared and managed digitally. Companies should therefore be ready to work on the federal government’s procurement platform and be able to provide documents electronically at short notice.

According to the Beschaffungsamt des Bundesministeriums des Innern (Procurement Office of the Federal Ministry of the Interior), more than 600 procurement offices already work entirely digitally on the e-Vergabe-Plattform des Bundes (federal e-procurement platform). Companies can use it to search for contract notices, access procurement documents and submit electronic tenders.

However, having an account on the platform does not in itself lead to direct awards. It provides the technical basis for taking part in published procedures. When an authority makes a direct enquiry, the tender, self-declarations and supporting documents must also be easy to find quickly.

You should therefore create a digital procurement folder. It can contain an extract from the commercial register, proof of insurance, references, certificates, pricing information and prepared company details. The documents actually required will depend on the individual contract.

If these documents are still spread across paper files, emails and different Excel files, digitalising recurring processes and documents can make them easier to manage.

Does the threshold of 50,000 euros also apply to federal states and municipalities?

No. The threshold of 50,000 euros applies to direct awards by the federal government. Germany’s federal states and municipalities may set their own thresholds and procedural rules.

A trade business should therefore not automatically assume that the same thresholds apply when dealing with a city administration, a district authority and a federal authority. The relevant factors are the specific contracting authority, the applicable procurement law and the estimated contract value.

Larger contracts also remain relevant to SMEs. The principle of dividing contracts into specialist lots and partial lots continues to apply. A specialist lot separates different trades, while a partial lot divides a larger, similar service into smaller quantities or geographical areas.

According to the German Federal Government’s interim report on modernisation, the German Federal Government and businesses expect the changes to reduce annual costs by almost 380 million euros. Around 100 million euros of this relates to businesses and approximately 280 million euros to public administration.

How can you prepare your business in practical terms?

Start with a manageable work plan for the next four weeks. The aim is not to monitor every tender, but to make your business easy for relevant authorities to find and ready to submit a tender at short notice.

  1. Identify three to five services that are suitable for public sector clients.
  2. Compile a list of federal offices within your regional reach and their procurement contacts.
  3. Register on the e-Vergabe-Plattform des Bundes and test the search function.
  4. Prepare your service profile, references and frequently required evidence in digital form.
  5. Decide internally who will review enquiries and how quickly your business will respond.
  6. Check each month which contract notices and contacts are relevant to your business.

Record contacts and responses in a simple spreadsheet or your customer management software. After a few months, this will show which authorities actually have a need and which services they request.

ibx company advises small and medium-sized businesses in Hannover and the surrounding region on the practical preparation of digital processes. If you would like to organise your procurement documents and responsibilities, you can arrange an initial consultation with no obligation to discuss a suitable approach.