Contract value

Table of contents

The contract value refers to the financial value of a contract awarded in a procurement procedure. The contract value indicates the amount the contracting authority is willing to pay for the performance of the contract.


The contract value is usually estimated or predetermined by the contracting authority and can be calculated in various ways. It can be stated either as the total amount of the contract value or as an estimated value over the period of the contract.


Contract value has several meanings and implications in the procurement process:


  1. exclusion limits: The contract value may play a role in determining the applicable procurement rules. Depending on the estimated contract value, different regulations and procedural requirements may apply. In Germany, there are thresholds that determine the application of national or European procurement regulations.


  1. types of procedure: the contract value can also influence the type of procedure that is applied in the award procedure. Depending on the value of the contract, different procedural options such as the open procedure, the restricted procedure or the negotiated procedure can be chosen.


  1. evaluation criteria: The contract value may also play a role in the weighting of the evaluation criteria. In some cases, for example, the contracting authority may set price as the main criterion if the contract value represents a significant proportion of the total evaluation.


The exact value of the contract is usually not finalized until after the award decision is made and the contract is signed. However, the contract value may be stated in the bidding documents or contract notice to provide guidance to potential bidders and assist them in submitting their bids.


It is important to note that the contract value includes not only the price of the services or product, but also any relevant costs that may be incurred under the contract, such as delivery costs, incidental costs, or optional services. The exact scope of the contract value is defined in the contract documents and the specific terms of award.


The contract value plays a decisive role in the award of public contracts, as it reflects the economic importance of the contract and is taken into account in the selection of the most economical bidder.

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