Public procurement concerns the granting of rights and the right to award public contracts. The Procurement Law regulates the awarding of public contracts to companies. The aim of the grant is to provide the contracting authority with material and personal resources at the most inexpensive and, at the same time best conditions. It also prevents corruption and nepotism, and ensures competition, equality and transparency on the market. Public contracting authorities are not only public bodies, but also private companies subjected to the right of awarding -for example energy companies-.
Many procurement procedures are nowadays carried out as electronic acquisitions, also called “E-Vergabe” or “eVergabe” in Germany.
Procurement Law in public contracts
With the last amending law to the Procurement Code (VgRÄG in German), basic material award principles and greatly expanded judicial protection have been introduced.
It thus turned out that the law neither significantly delays transactions with the public sector nor leads to investment restrictions. Companies and municipalities criticized the lack of clarity and the difficulty of comprehension of the convoluted awarding regulations.
Constant simplification of the Procurement Law
The continual amendment of the Code had the purpose of restricting the awarding rules to the necessary extent and removing superfluous bureaucratic requirements. For example, the German Procurement Committee had the task of substantially simplifying the regulation of services –Part A (VOL/A) – , a part of the Procurement Law. The new VOL/A (Article 1 of the Adaptation Regulation) entered into force.
Regulation on the awarding of Public Contracts
The Regulation on the awarding of public contracts is intended to implement the Directive on the coordination of the contract´s awarding entities operating in the water, energy, transport and postal services sectors (2004/17 / EC), the Directive on the coordination of procedures for the award of public works contracts, (Directive 2004/18 / EC) and the Directive on the coordination of procedures for the award of certain contracts in the field of defense and security (2009/81 / EC) and to change also the Directive 2004/17/ EC and 2004/18 / EC. With the entry into force of the recast versions of VOL / A, VOB / A, VOF 2009 as well as the implementation of Directive 2004/17 / EC, also the Public Procurement Order has been amended.
Procurement Law, Defense and Security
On December 14, 2011, the amendment concerning Procurement Law in the field of defense and security came into force. Hereby have been transcribed the requirements of Directive 2009/81 / EC of the EU Legislation into National Laws. The objective of Directive 2009/81 / EC is to improve the coordination of procurement procedures, taking into account specific requirements, particularly in the field of supply and security information of the member states. In this way, it is gradually possible to build up a European Market for defense and security equipment with equal competitive conditions and to open up to national Procurement Markets for European providers.
In accordance with the area-specific characteristics, the assignment of defense and safety-relevant contracts will be regulated in a separate Procurement Ordinance regarding only this area of interest.