Bundestag Considers Draft Law to Revamp Public Procurement Law
Background
On January 15, 2025, the Bundestag (German Parliament) will debate a draft law aimed at overhauling the country’s public procurement law regime. The draft law, known as the “Vergaberechtstransformationsgesetz” (VergRTransfG), seeks to implement EU directives into German law and update the current regulatory framework.
Key Provisions
The draft law includes several key provisions designed to modernize and streamline public procurement processes. These provisions include:
- Electronic procurement: The law would require contracting authorities to use electronic means for all stages of the procurement process, including tendering, awarding, and execution of contracts.
- Simplified procedures: The law would introduce simplified procurement procedures for low-value contracts and contracts below certain thresholds.
- Sustainability criteria: The law would incorporate sustainability criteria into the procurement process, requiring contracting authorities to consider environmental and social factors when awarding contracts.
- Transparency and accountability: The law would enhance transparency and accountability in public procurement by requiring contracting authorities to publish more information about their procurement activities.
Bundesrat’s Position
The Bundesrat (Federal Council) has issued a statement expressing concerns about certain aspects of the draft law. The Bundesrat argues that the law does not provide sufficient flexibility for contracting authorities and may lead to increased bureaucracy. The Bundesrat also calls for further clarification on the implementation of electronic procurement.
Government’s Response
The federal government has submitted a counter-statement to the Bundesrat’s concerns. The government argues that the draft law strikes a balance between modernization and flexibility and that it is necessary to ensure compliance with EU directives. The government also states that it is committed to providing guidance and support to contracting authorities on the implementation of electronic procurement.
Next Steps
The Bundestag will now consider the Bundesrat’s statement and the government’s counter-statement before making a final decision on the draft law. If passed, the law would come into effect in 2026.
20/14518: Unterrichtung Entwurf eines Gesetzes zur Transformation des Vergaberechts (Vergaberechtstransformationsgesetz – VergRTransfG) – 20/14344 – Stellungnahme des Bundesrates und Gegenäußerung der Bundesregierung (PDF)
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