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The Key Points in Brief
- The Public Procurement Acceleration Act comes into force on 1 July 2026 (Federal Law Gazette of 18 May 2026).
- Direct awards at federal level will in future be possible up to 50.000 € .
- For construction services, the thresholds rise significantly: negotiated award without a tender up to 100.000 €, restricted tender without a participation competition up to 150.000 €.
- The new principle of dividing contracts into lots (§ 97a GWB) is intended to give small and mid-sized companies greater consideration in subcontracting.
- Accompanying this, the Federal Collective Wage Compliance Act has applied since 1 May 2026 (from a contract value of €50,000).
The Procurement Acceleration Act 2026 has been passed and comes into force on 1 July 2026. Higher thresholds, a new principle of dividing contracts into lots and leaner procedures shift the playing field above all below the EU thresholds — precisely where mid-sized companies win most public contracts. We put the five most important changes into context and show what they mean in practice for mid-sized bidders.
What the Public Procurement Acceleration Act is
The law has a clear purpose: to simplify, speed up and digitalise public procurement. The Bundestag passed it on 23 April 2026, the Bundesrat approved it on 8 May 2026, and it was published in the Federal Law Gazette on 18 May 2026. Entry into force: 1 July 2026.
For mid-sized companies, the interesting message is less the speed itself — but the shift in thresholds. Where complex procedures were previously required, public authorities can in future award contracts more directly and faster. This opens up opportunities for providers who can put their documents on the table quickly and completely.
The 5 most important changes for mid-sized companies
1. Higher thresholds for direct awards
Federal authorities will in future be able to buy up to a contract value of €50,000 directly — without a formal procedure. For smaller contracts, that means less bureaucracy and faster awards. Those who are known as a reliable provider and quickly deliver a robust bid benefit immediately.
2. More leeway for construction services
In construction, the limits rise most markedly: direct award up to €50,000, negotiated award up to €100,000 and restricted tender without a participation competition up to €150,000. For mid-sized construction companies in particular, this creates a larger field of contracts awarded without a lengthy procedure.
3. New principle of dividing contracts into lots (§ 97a GWB)
With § 97a GWB, a dedicated principle of dividing contracts into lots enters the law. Contracting authorities are to give greater consideration to the interests of smaller companies in subcontracting. For SMEs, which often act as subcontractors, this is a relevant lever — provided they can prove their suitability cleanly and quickly.
4. Faster procedures
Accelerated review and shorter processes are the heart of the law. The flip side for bidders: there is less time to improve a bid. Those who only start gathering documents shortly before submission come under pressure. Preparation decides.
5. Accompanying: the Federal Collective Wage Compliance Act
The Federal Collective Wage Compliance Act has applied since 1 May 2026. It applies to federal contracts from an estimated contract value of €50,000 and requires collectively agreed working conditions. In the version passed, pure supply contracts are exempt. For bidders, this means: collective wage compliance documents now belong in bid preparation.
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What the changes mean in practice
Taken together, the changes shift the advantage: away from “who researches most thoroughly” towards “who is first with a clean, complete bid”. More small contracts, faster, often without a lengthy participation competition — this rewards providers who have their documents ready at any time.
The real lever is therefore not the threshold alone, but the digitalisation of your own procurement process. Higher thresholds don’t digitalise a single procedure. The difference is made by those who think of procurement as digital from end to end: from finding the right tender through the suitability check to submission. That way, an 80-person company gets the same punch as a corporation with its own bid department.
How to prepare as a mid-sized bidder
Three steps that pay off directly from 1 July:
- Maintain your master file digitally. Keep references, certificates, collective wage compliance declarations, and equipment and material documents central and searchable. In negotiated awards, minutes decide, not days.
- Combine sources. Those who monitor only one procurement portal miss suitable contracts. Multi-source monitoring across all relevant portals is the foundation for seeing the new, faster awards in time at all.
- Create bids from knowledge rather than templates. Mandatory fields can be filled in from tenders already answered, contracts and references — industry-specifically, because a construction tender works differently from a leasing or cleaning-technology tender.
You can find more on the topic in our guide Finding tenders across all procurement portals, in our article Using bidder questions strategically and in the industry deep-dive Winning tenders in the construction industry. The official information on entry into force is compiled by the forum vergabe e.V.
Frequently Asked Questions (FAQ)
When do the new value thresholds apply?
The new value thresholds under the Public Procurement Acceleration Act apply from 1 July 2026. The act was promulgated in the Federal Law Gazette on 18 May 2026 and enters into force on the first day of the following quarter.
What does § 97a GWB change for SMEs?
The new principle of dividing contracts into lots in § 97a GWB obliges contracting authorities to give greater consideration to the interests of smaller companies when subcontracting. For SMEs working as subcontractors, this improves their starting position — provided that suitability and supporting evidence are quickly available.
Does the Federal Collective Agreement Compliance Act (Bundestariftreuegesetz) also apply to supply contracts?
No. In the watered-down version that was adopted, pure supply contracts are exempt. The Bundestariftreuegesetz applies to federal contracts with an estimated contract value of €50,000 or more and requires collectively agreed working conditions.
What do the changes below the EU thresholds mean?
The most movement is right below the EU thresholds (2026: €5,404,000 for construction contracts, €216,000 for supply and service contracts). This is where the higher national value thresholds apply — and where the largest contract volume for mid-sized companies lies.
Conclusion
The Public Procurement Acceleration Act 2026 makes public procurement faster and creates more room for smaller, less formal awards. For mid-sized companies, this is an opportunity — but only for those who are prepared. Higher value thresholds alone don’t win contracts. Those who digitise their procurement process and keep documents ready at all times can make use of the new, faster procedures. Speed beats thoroughness once the bid is complete.
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