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The amendment to the Procurement and Minimum Working Conditions Procedure Ordinance, published in the Law and Ordinance Gazette on March 2, 2026, significantly increases the limits to which states and municipalities can award public contracts directly and without a complex procurement procedure.
What does the procurement and minimum working conditions procedure regulation govern?
The Procurement and Minimum Working Conditions Procedure Ordinance in Mecklenburg-Western Pomerania ( VgMinArbV MV ) supplements the Mecklenburg-Western Pomerania Public Procurement and Collective Bargaining Act ( TVgG MV ). The ordinance entered into force on May 15, 2024.
It regulates the procurement procedure for public contracts as well as the procedure for establishing and monitoring minimum working conditions for such contracts.
The ordinance also establishes binding minimum working conditions. It includes provisions on representative collective bargaining agreements and the resetting of the minimum wage under public procurement law.
Why is there an amendment to the regulations governing the awarding of public contracts this year?
The amendment, published on March 2, 2026, adapts the Procurement and Minimum Working Conditions Procedure Ordinance to new legal and practical requirements, including those resulting from developments in public procurement law and in response to the practice established since its entry into force.
The aim of the change is:
- significantly less bureaucracy in the awarding of contracts
- faster public procurement
- more scope for action for municipalities and state authorities
- Acceleration of investments and construction projects
What impact will the amending regulation have on companies?
The most important aspect for businesses is that the amending regulation significantly raises the existing thresholds for awarding public contracts.
Below these amounts, contracting authorities can, for example, choose direct awards, negotiated procedures without prior publication, or restricted procedures without conducting a formal public procurement process. Only when these thresholds are exceeded are further or more formal procurement procedures required, or, if applicable, the EU procurement thresholds must be observed.
This naturally has direct positive effects, especially for small and medium-sized enterprises (SMEs), as the adjustment means, among other things:
- Faster commissioning through direct award
- Shorter lead times through faster processes
- less formal bidding procedures with less extensive tender documents
- Reduced documentation and form requirements in simplified procedures
- less competition from nationwide or Europe-wide providers
- Above all, high-performing established companies with good references, existing contacts with municipalities and proven adherence to collective bargaining agreements have better chances.
Regulation amending the procurement and minimum working conditions procedure regulation
