Be it combat vehicles, computers or clothing : The Bundeswehr needs adequate equipment to be able to fulfil its mission. According to Article 87b of the German Basic Law, satisfying these procurement needs is the direct responsibility of the Federal Defence Administration.
In order to provide the Bundeswehr with efficient and safe equipment, civilian agencies of the Federal Defence Administration award contracts to companies from the industry, trade and commerce sectors. In the decision-making process, all stakeholders must comply with numerous provisions related to public procurement law.
On this basis, the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBwBundesamt für Ausrüstung, Informationstechnik und Nutzung der Bundeswehr) is one of the central procurement agencies of the Bundeswehr. This term refers to a government procuring agency providing other government procuring agencies with supplies and services on a sustained basis.
For example, BAAINBwBundesamt für Ausrüstung, Informationstechnik und Nutzung der Bundeswehr awards study, research and development contracts as well as contracts for the initial supply and follow-on supply of defence and supply items (motor vehicles, Air Force and Navy equipment, communication equipment, information technology, weapons, ammunition, missiles, POLPetrol, Oil and Lubricants products, food, etc.), including repair activities, on behalf of the single services.
Depending on the nature of the contract item (civilian or defence- and security-related contract item) and the estimated contract value (without turnover tax, but including all options), the contract award procedure is governed by the provisions of the Regulation on the Award of Below-Threshold Contracts (Unterschwellenvergabeordnung, UVgOUnterschwellenvergabeordnung), the Regulation on the Award of Public Contracts (Vergabeverordnung, VgVVergabeverordnung über die Vergabe öffentlicher Aufträge) or the Procurement Regulation on Defence and Security (Vergabeverordnung Verteidigung und Sicherheit, VSVgVVergabeverordnung Verteidigung und Sicherheit). Whether a contract falls under the scope of these standards depends, among other things, on a so-called threshold. Further information on this topic may be obtained from the websites of the German Federal Ministry for Economic Affairs and Clima Action.
Find useful links to laws and regulations governing procurement in the Bundeswehr:
The Regulation PRPublic Relations No. 30/53 on Pricing in Public Contracts (Verordnung PRPublic Relations Nr. 30/53 über die Preise bei öffentlichen Aufträgen) contains provisions on pricing and reviews of prices in public contracts (pricing law and the principle of the auditing of prices). The “Rules for the Determination of Cost Prices” (Leitsätze für die Preisermittlung auf Grund von Selbstkosten) are annexed to this Regulation. Both documents may be downloaded here:
Guidelines for Pricing on the Basis of Cost (unofficial english Translation) (PDF, 109.9 KB)
