Procurement Glossary
Restricted procedure: Definition and application in procurement
November 19, 2025
The restricted procedure is a centralized award procedure in public procurement in which only selected companies are invited to submit tenders. In contrast to the open procedure, suitable bidders are pre-selected by the contracting authority. Find out below what characterizes the restricted procedure, which process steps need to be observed and how current developments affect procurement practice.
Key Facts
- Restricted award procedure with pre-selection of qualified bidders
- At least three companies must be invited to submit tenders
- Two-stage procedure: Competitive bidding and subsequent offer phase
- Application for complex procurements or a limited number of bidders
- Shorter duration of the procedure compared to the open procedure
Contents
What is a restricted procedure?
The restricted procedure is a structured procurement method that enables a targeted selection of bidders.
Basic characteristics
A restricted procedure is characterized by the limited number of participants. The contracting authority first conducts a competition to identify suitable candidates. Only these selected companies are then invited to submit a tender.
- Two-stage selection process
- Limited number of invited bidders
- Focus on qualifications and suitability
Restricted vs. open procedure
In contrast to the open procedure, not all interested companies can apply directly. The pre-selection is based on defined suitability criteria, which results in a higher quality of bids.
Importance in Procurement
The procedure is particularly suitable for complex procurements where special expertise or certifications are required. It reduces the amount of checking required and improves the chances of success for qualified providers.
Process steps and responsibilities
The systematic implementation of a restricted procedure requires a structured approach with clearly defined phases.
Preparation and call for tenders
The process begins with the publication of an announcement inviting companies to take part in the competition. Interested companies submit their application documents, which are evaluated based on the suitability criteria.
- Preparation of the tender documents
- Definition of the selection criteria
- Evaluation of requests to participate
Offer phase and evaluation
After the selection of bidders, the invitation to tender is issued. The bids received are evaluated in accordance with the specified award criteria. An evaluation matrix supports the objective evaluation.
Surcharge and documentation
The award decision is documented and communicated to all bidders. Complete documentation in the award file ensures the traceability of the procedure.
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Important KPIs and targets for restricted procedure
Specific key figures make it possible to evaluate process efficiency and quality.
Process duration and efficiency
The average duration of the procedure from the competition to the award of the contract is an important indicator. Target values are typically 20-30% below those of open procedures.
- Time until bidder selection
- Total duration of proceedings
- Processing effort per offer
Offer quality and success rate
The ratio of usable to unusable bids shows the quality of the bidder selection. A high ratio of usable bids confirms the effectiveness of the suitability criteria.
Cost efficiency
The relationship between savings achieved and process costs assesses the economic benefit. A scoring model can systematically record and evaluate various cost factors.
Litigation risks and countermeasures in restricted proceedings
The limited selection of bidders entails specific risks that can be minimized by taking appropriate measures.
Risk of discrimination
An inadequately justified bidder selection can lead to accusations of discrimination. Transparent suitability criteria and comprehensible documentation of the selection decision are essential.
- Define objective evaluation standards
- Document selection decisions
- Observe the principle of equal treatment
Limited intensity of competition
The reduced number of bidders can lead to less competitive prices. Careful market analysis and the invitation of a sufficient number of qualified bidders counteract this risk.
Legal challenges
Companies that are not considered can legally challenge the procedure. A precise description of services and compliance with all procedural regulations significantly reduce the risk of contestation.
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Practical example
A municipal utility is planning the procurement of a complex IT infrastructure for energy management. Due to the high technical requirements and necessary certifications, it is conducting a restricted procedure. Following the announcement, 15 companies apply to participate. Based on defined criteria such as references, certifications and personnel qualifications, five bidders are selected and invited to submit a bid. The procedure considerably reduces the amount of checking required and leads to high-quality bids.
- Clear definition of technical requirements
- Structured evaluation of requests to participate
- Focused bid review for selected bidders
Current developments and effects
Digitalization and new technologies are significantly changing the implementation of restricted procedures.
Digital procurement platforms
Modern electronic tendering systems automate key process steps. Digital processing reduces processing times and improves transparency for all parties involved.
- Automated suitability test
- Digital offer evaluation
- Electronic communication with bidders
AI-supported bidder selection
Artificial intelligence is increasingly supporting the pre-qualification of bidders. Algorithms analyze company data and references to identify the most suitable candidates. This increases the objectivity of the selection decision.
Sustainability criteria
Environmental and social standards are becoming increasingly important as selection criteria. Clients are increasingly integrating sustainability aspects into their evaluation criteria, which expands the requirements for bidder qualification.
Conclusion
The restricted procedure offers an efficient alternative to the open procedure if qualified bidders are to be specifically selected. The two-stage structure reduces the review effort and significantly improves the quality of bids. Digital technologies and AI-supported selection processes will further increase efficiency. The transparent definition of selection criteria and careful documentation of all procedural steps remain crucial for success.
FAQ
When does a restricted procedure make sense?
A restricted procedure is suitable for complex procurements with high qualification requirements, a limited number of bidders or if a pre-selection improves the quality of the bid. It is particularly advantageous for technically demanding services or specialized services.
What is the minimum number of bidders that must be invited?
Under German public procurement law, at least three companies must be invited to submit tenders, provided there is a sufficient number of suitable candidates. In the case of EU-wide procedures, different minimum numbers apply in some cases depending on the type of procedure.
Which selection criteria are permissible?
Permissible criteria include professional suitability, reliability, performance and references. The criteria must be objective, transparent and proportionate. Discriminatory or disproportionate requirements are inadmissible and may lead to the procedure being contested.
How does the documentation requirement differ?
The documentation must include both the selection decision in the competition and the tender evaluation. Particular care must be taken when justifying the selection of bidders, as this is often the subject of legal reviews.
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