Minister Habeck simplifies rules on public procurement in connection with war in Ukraine

The procurement rules on purchases below €10,000 have been simplified for the public administration provided that they are made in connection with the war of aggression against Ukraine. The aim is to make it easier for the federal government, the Länder and municipalities to respond to the consequences of the war. Especially purchases which become necessary in order to provide adequate and secure accommodation as well as food and medical care to refugees from Ukraine will thus be facilitated. In addition, it will become easier to undertake necessary investments in cybersecurity and energy supply in the public sector. The federal cabinet has adopted the respective legal provisions with effect from today. The Federal Ministry for Economic Affairs and Climate Action has informed all the public contracting authorities about the new rules.

Federal Minister for Economic Affairs and Climate Action Dr Robert Habeck said: "In view of the war in Ukraine, many public authorities are facing an enormous pressure to act. People who have fled from Ukraine need to be accommodated adequately and supplied with food and medical care, and public institutions may have to conclude new contracts. This requires unbureaucratic and simple procurement procedures so that everything that is needed can be procured quickly."

The federal government launched two measures today in order to provide a reliable framework for quick and needs-based public procurement and ensure swift action on this basis.

The federal government had already adopted rules on simplified procedures for the portfolio of the Federal Ministry of Defence. The possibility to award contracts directly has been expanded with effect from today to the whole federal administration, provided that the estimated contract value does not exceed €5,000 for goods and services or €8,000 for public works (not including VAT) to be procured in connection with Russia’s war of aggression against Ukraine and respectively. The modified rules also apply to recipients of federal funding (beneficiaries) and are limited until 31 December 2023.

In addition, the Federal Ministry for Economic Affairs and Climate Action - in coordination with the Federal Ministry for Housing, Urban Development and Building, which is in charge of public contracts in the building sector - has published a circular to provide information about the possibilities of urgent contracting and further measures to speed up and facilitate public procurement in connection with the war against Ukraine below and above EU thresholds. This also serves to improve legal certainty for municipalities which need to award contracts urgently, for example in order to provide refugees from Ukraine with accommodation, food and medical care.