Ministry Defends Procurement Law Speedup

Ministry Defends Procurement Law Speedup

The Federal Ministry for Economic Affairs and Climate Action has defended a provision within the new law designed to accelerate procurement processes, addressing concerns raised by several industry associations.

Responding to inquiries from the dts news agency on Wednesday in Berlin, a ministry spokesperson stated that the regulations concerning the so-called “lot principle” represent a considered balance between supporting small and medium-sized enterprises and the need for accelerated procedures. The spokesperson emphasized that the procurement acceleration law contains numerous other elements beneficial to the broader economy and industry.

Previously, a joint letter signed by eight industry associations was sent to Minister for Economic Affairs and Climate Action, Katarina Reiche, expressing caution regarding the proposed lot principle. The associations warned that the regulation could trigger “massive additional workload and bureaucracy.

The central element of the regulation involves dividing large-scale contracts into multiple “lots”. The associations are advocating for the possibility of awarding multiple sub-lots or specialist lots together, either fully or partially, when justified by economic, technical, or time constraints. The Ministry indicates that exceptions to the lot principle are already permissible for specific projects funded by the special asset fund.