Procurement Acceleration Act 2026: Faster procurement through reform(?)

On 23 April 2026, the German Bundestag adopted the Public Procurement Acceleration Act (Vergabebeschleunigungsgesetz).

The aim of the Act is to significantly simplify, accelerate, and further digitalize public procurement procedures. In doing so, the legislator responds to ongoing criticism that complex and lengthy procurement processes delay urgently needed investments—particularly in infrastructure. The Act represents another building block in the modernization of public procurement law and is likely to have a noticeable impact on both contracting authorities and companies.

Objective: Faster Procedures, Increased Investment

At its core, the Act pursues three key objectives:

• accelerating procurement procedures
• reducing bureaucratic hurdles
• strengthening digitalization and innovation

These measures are intended to make public procurement more efficient and to enable public investments—such as in transport, infrastructure, and climate protection—to be implemented more quickly.

Key Changes – Higher Thresholds for Direct Awards

One of the central changes is the increase of the threshold for direct awards to EUR 50,000.

• Smaller contracts may now be awarded without a formal procurement procedure
• This reduces administrative effort and accelerates procurement processes more broadly

For contracting authorities, this means greater flexibility; for companies, faster contract awards—albeit with less formalized market access. However, the option of direct awards does not remove the obligation to comply with budgetary principles requiring the economical use of public funds. As a result, internal structures ensuring cost-effective procurement may become increasingly important.

Key Changes – Accelerated Legal Protection

Remedies under procurement law are being restructured:

• No automatic suspensive effect for immediate appeals
• Following the rejection of a review application at first instance, contract award may proceed

This is intended to prevent legal remedies from unnecessarily delaying projects. At the same time, however, the legal protection available to bidders is being reshaped.

Key Changes – Relaxation of the Lotting Principle

The principle of dividing contracts into lots remains in place but is supplemented:

• introduction of a new Section 97a of the Act against Restraints of Competition (GWB)
• exceptions for large infrastructure projects where there is time pressure
• particularly relevant for projects financed through special funds (e.g. infrastructure, climate neutrality)

While bundling services can accelerate project delivery, it also entails risks for competition and the participation of smaller companies.

Key Changes – Planned Facilitation for SMEs

Alongside increased flexibility for contracting authorities, the Act introduces measures to facilitate participation for companies. Requirements regarding suitability, references, and financial capacity are partially reduced or applied more flexibly.

This is intended in particular to make it easier for small and medium-sized enterprises (SMEs) and innovative providers to access public contracts. In combination with faster procedures, this could lead to broader participation and increased competition—provided that the new flexibility is actively used. However, it remains to be seen to what extent the new rules will actually facilitate participation for smaller companies or those less experienced in public procurement.

Reform of the Sub-Threshold Procurement Regulation (UVgO) Announced

In the context of the adoption of the Act, it is also worth noting that a revision of the Sub-Threshold Procurement Regulation (UVgO) is planned as part of the federal modernization agenda by 31 December 2026 at the latest.

The aim is to achieve the greatest possible harmonization of procurement rules below EU thresholds. This is also expected to affect the first section of the Construction Procurement Rules (VOB/A). Regional deviations between the federal states are to be avoided wherever possible.

Conclusion

The Public Procurement Acceleration Act introduces a number of far-reaching changes and is intended to bring about—or at least signal—a clear shift in direction: procurement procedures are to become faster, more flexible, and less formalistic. At the same time, however, requirements for responsible application, transparency, and internal control are increasing.

Whether the reform will achieve its objectives will ultimately depend on its practical implementation. A key factor will be whether sufficient capacity and willingness exist to make use of the new flexibility. The tension between acceleration and ease of application on the one hand, and transparent and economically sound procurement on the other, will remain.