has this been the turbocharger?
In a bid to streamline public procurement processes and support economic growth, the coalition between the Union and SPD in Germany has proposed a series of reforms. The aim is to make procurement simpler, faster, more flexible, and more digital.
One of the key elements of the proposed reforms is the increase in the direct order value limit for federal contracts. Currently set at €15,000, the limit will be raised to €50,000, reducing administrative processes and saving costs and time.
The reforms also seek to accelerate review procedures, aiming to avoid delays and streamline award processes. Sustainability regulations may be eliminated, but special procedures for climate-friendly products will be introduced to balance efficiency with environmental concerns.
To promote opportunities for Small and Medium Enterprises (SMEs), startups, and innovative companies, the reforms propose creating more favorable conditions and exceptions. This includes increasing the direct procurement limit for innovative startups to €100,000.
In the defense sector, the reforms introduce a new Bundeswehr Planning and Procurement Acceleration Act (BwPBBG) to speed up defense acquisitions, emphasize security interests, and promote innovation in defense procurement.
The reforms also aim to unify the jungle of state-specific regulations by aligning threshold values in national law. The future federal government also plans to advocate for an increase in threshold values at the European level to reduce administrative burden.
However, the coalition agreement remains vague in many places regarding the implementation of these goals. Experts warn that without fundamental reforms, the investment program may fail.
Professor Ralf Leinemann, honorary professor for construction and procurement law, has expressed concern about the current state of procurement structures, especially in light of the two planned special funds of 500 billion euros each. He calls for more reform efforts.
For those interested in learning more about these reforms, Wolfgang Leja can be reached at 0711 66601-131 or via email at w.leja@our website.
The coalition also aims to strengthen strategic procurement management by allowing authorities to rely on framework agreements of other public authorities and central purchasing platforms. The goal is to create a more efficient and effective procurement system.
In summary, these legislative reforms seek to reduce bureaucracy, adapt procurement processes to modern economic needs, and provide targeted support to small businesses and innovation while maintaining efficiency and legal safeguards. The reforms stem from the Coalition Agreement’s focus on modernization and economic stimulus through improved government procurement frameworks.
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