Simplified Procurement Court to Boost Freedom and Minimize Red Tape, Says Schmitt!
Simplifying Public Procurement: Rhineland-Palatinate Leads the Way
Step aside, red tape! Rhineland-Palatinate is making waves by boosting procedures and slicing down bureaucracy, effective from January 1, 2025. The significant upsurge in contract value thresholds within public procurement is a game-changer, enabling less paperwork, more flexibility, and swifter procedures—a win for all involved in public tenders.
"We're shaking things up in Rhineland-Palatinate and sweeping away unnecessary hassles in these procedures," elaborates Minister of Economics Daniela Schmitt. "We're addressing current challenges and offering public contracting authorities and businesses the necessary space to operate."
What's New?
- For supply and service contracts, the ease of awarding public tenders has skyrocketed—now up to 100,000 euros (previously 80,000 or 40,000 euros). Only a restrained procedure with minimal competition is needed.
- The boundaries for simplified construction contract procedures have widened to 250,000 euros (previously 200,000 euros). Direct awards are possible up to 100,000 euros (previously 40,000 euros).
- Direct awards, or awards without a bidding process, are now permitted up to 10,000 euros—over three times the previous limit of 3,000 euros.
Why This Matters?
Many businesses avoid the daunting bureaucracy of public tenders. With these practical changes, the state government aims to make it easier for them to take part in the action. Both municipalities and the state benefit too: vital investments can be implemented more swiftly.
"These fresh impulses in public procurement law, focusing on more leeway, appear timely and spot-on. We're not just setting economic policy milestones in Rhineland-Palatinate, but also aiding municipalities and the state in pushing forward urgently needed investments more expediently," emphasizes Minister Schmitt. "Moreover, these modifications ensure the appropriate use of public funds by upholding necessary, yet practical rules, tailored to meet today's challenges."
Other industries may find a more favorable business environment in Rhineland-Palatinate, thanks to the state's finance-friendly public procurement reforms. This industry-wide change opens new doors for service providers and builders, as the state government streamlines procedures and reduces red tape.
