With the new allocation map, the Digital Association Bitkom The map clearly shows how much the procurement rules differ between the German states and what opportunities this presents for Munich-based startups. It illustrates the maximum amounts up to which public authorities are permitted to award contracts without formal procedures. For the first time, it provides a detailed overview of these so-called direct award thresholds.
Authorities in Bavaria can directly commission projects worth up to €100,000 without having to conduct a time-consuming tendering process. This puts Bavaria significantly above states like Saxony, where the limit is only €500. However, Bavaria does not utilize the maximum limit of €221,000 permitted by the European Union, unlike, for example, Baden-Württemberg.
Moderate entry opportunities into public contracts for Bavarian startups
For Munich-based startups, this means that after successful direct contracts, further procedures such as negotiated awards or restricted tenders are available in Bavaria, both with a maximum budget of €221,000. This allows for the implementation of larger innovation projects with administrative bodies or municipal companies.
Ralf Wintergerst, President of the digital association Bitkom, comments:
"Those who want to digitize public administration should also rely on innovations from startups. This means, among other things, taking into account the special conditions of young companies and avoiding lengthy tendering procedures."
For Munich-based startups active in areas such as GovTech, AI, or digital infrastructure, the Bavarian regulation can be a crucial foundation for acquiring the public sector as a client. Public sector clients can thus test and implement new solutions more quickly, benefiting both sides.
Nationwide startup-friendly procurement rules demanded
Winter barley calls for reducing the existing differences between countries:
"Our goal should be to create uniform federal award rules for startups and to weave together the current patchwork of regulations."
Uniform rules could make it easier for Munich startups to bring their solutions to public administrations not only locally, but also nationwide. Award map is available online Available on the Bitkom website, this information provides an interactive overview of all state regulations. Users can find out directly which limits apply in their state and which procedures are best suited for young companies.
