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What Is a Discretionary Award (Freihändige Vergabe, Germany)?
This is a German procurement term. An award made by negotiation with selected companies, without a formal procedure.
What is a freihändige Vergabe?
A below-threshold procedure in which the buyer negotiates with one or more selected companies without a formal competition. Under the UVgO it is now called Verhandlungsvergabe.
When is it allowed?
Only in the cases the UVgO or the VOB/A section 1 permit, for example below a value limit set by the state, for urgency, or where only one company can deliver.
Must the buyer invite several companies?
As a rule, yes, at least three, and it should change the companies it invites. A single-company award needs specific justification.
