New Threshold Values Ordinance 2025

Authors: Johannes Hartlieb and Florian Krumbiegel

Direct awards up to EUR 143,000 possible in future

On July 22nd, 2025, the new Threshold Values Ordinance 2025 (Federal Law Gazette II No. 167/2025) came into force. With this, the federal government is implementing a key project from its government program and taking another step toward reducing bureaucracy in public procurement procedures. The decision to raise the threshold for direct awards from EUR 100,000 to EUR 143,000 (excluding VAT) was already made in March 2025.

What does this mean for contracting authorities?

For public contracting authorities, this increase represents a significant simplification of procedures: Services with a contract value of up to EUR 143,000 can in the future be awarded through direct award – meaning without a formal procurement procedure and without a public tender. In principle, this form of procurement allows companies to be invited directly to submit bids and, where applicable, to be commissioned immediately. In cases of urgent or short-term procurement needs in particular, the higher threshold gives contracting authorities significantly more flexibility. However, no adjustment has been made again for specific services. Here, the threshold remains at EUR 100,000 net (section 151 para. 6 BVergG 2018) – in contrast to the general increase for direct awards.

A step toward debureaucratization

The substantial increase in the threshold values is not only a step toward reducing bureaucracy and accelerating procurement processes, but also takes into account the current economic situation, particularly with regard to rising prices and high inflation. From the perspective of many contracting authorities and companies, the measure is therefore explicitly welcomed.

Limited duration

The ordinance will initially only apply until March 31st, 2026, and the “old” Threshold Values Ordinance 2023 (Federal Law Gazette II No. 34/2023, as amended by Federal Law Gazette II No. 405/2023) is repealed. The applicability of the increased threshold for awarding construction contracts through a negotiated procedure without prior publication, for contracts with an estimated value below EUR 1,000,000 as per section 43 para. 1 (1) BVergG 2018, has also been extended until March 31st, 2026. Whether the increased thresholds will remain in place beyond that or even be permanently incorporated into the BVergG 2018 remains to be seen. In any case, the Federal Ministry of Justice is currently working on an amendment to public procurement law to implement the measures proposed in the government program and to align procurement law with EU requirements.

Conclusion

Raising the threshold for direct awards brings noticeable relief for public contracting authorities and strengthens the public sector’s ability to act in economically challenging times. A permanent legal anchoring could secure this effect in the long term – but for now, that remains a political matter for the future.

We therefore recommend that public contracting authorities follow the new regulations closely – they could prove to be a significant procedural simplification in practice. If you have any questions in the meantime, our public procurement law experts will be happy to assist you at any time.

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.