Procurement law for AI in Austria: what the BVergG 2018 requires since 2026
In Austria, the Federal Procurement Act 2018 governs the procurement of an AI platform, since 1 March 2026 as amended by the Procurement Law Act 2026. Supplies and services below €140,000 net may be awarded directly; above €50,000 the contracting authority should obtain three offers or price quotes. From €216,000 (central authorities €140,000), the above-threshold regime applies. The contract is generally awarded to the technically and economically most advantageous offer.
Which rules apply since 2026?
The basis is the Federal Procurement Act 2018 (Bundesvergabegesetz, BVergG 2018). It was amended by the Procurement Law Act 2026 (Vergaberechtsgesetz 2026, BGBl. I No. 8/2026) with effect from 1 March 2026. The most important change for buying software: the value limits for direct awards are now set permanently in the act, and the threshold ordinances that used to be extended every year no longer apply.
The BVergG applies to the federal government, the federal states, municipalities and associations of municipalities, and to bodies that are mainly publicly funded or supervised, such as state hospitals and the hospital operators of the federal states.
Which value limits apply to an AI platform?
For supplies and services (software, cloud services, training), the following have applied since 1 January 2026:
| Regime | Estimated contract value, net | Legal basis |
|---|---|---|
| Direct award | below €140,000 | § 46 para. 2 no. 2 BVergG 2018 |
| Direct award, duty to obtain comparative offers | above €50,000: at least three offers or non-binding price quotes, unless there are objective reasons against it | § 46 para. 4 BVergG 2018 |
| Above-threshold regime, central public contracting authorities (Annex III) | from €140,000 | § 12 para. 1 no. 1 BVergG 2018 |
| Above-threshold regime, all other public contracting authorities | from €216,000 | § 12 para. 1 no. 3 BVergG 2018 |
The value is estimated over the entire term, excluding VAT and including all options (§ 13 BVergG 2018). Offers obtained, the subject matter, the value and the contractor must be documented even for a direct award (§ 46 para. 5).
Which procedure fits?
- Direct award: for smaller roll-outs, for example a cloud licence for part of the administration, if the value over the entire term stays below €140,000.
- Direct award with prior publication (§ 47): a simplified procedure with a public notice; it is suitable if you want to reach several providers without running a formal procedure.
- Open or restricted procedure: for larger projects, for example a platform for a hospital group or a federal state.
- Negotiated procedure: only in the cases set out in the act, for example if the service cannot be described precisely enough in advance.
Before the procedure, you may explore the market (§ 24). If a provider was involved in the preparation, you must offset distortions of competition, for example by giving all bidders the same information (§ 25).
Which criteria decide the award?
In the tender documents, you specify whether the technically and economically most advantageous offer (best-bidder principle) or the lowest price wins the contract. The best-bidder principle applies as a rule; the lowest price alone is only permitted for services that are described clearly and completely (§ 91 para. 4 BVergG 2018). An AI platform rarely is, because the quality of answers, permissions and connections differ. Total cost over the term and a trial installation with your sample documents have proven their worth; how to weight criteria is shown in the guide Criteria catalogue for evaluating providers.
What role does the Bundesbeschaffung GmbH play?
The Bundesbeschaffung GmbH (BBG, the Austrian federal procurement agency) is the central purchasing body. It concludes framework agreements from which federal agencies, federal states, municipalities, universities and healthcare institutions can call off without running their own tender. A basic agreement with the BBG is required. Its range includes IT hardware, software and IT services. Clarify with the BBG whether an agreement exists that covers your requirements for an AI platform, for example operation in your own organisation or processing in the EU.
What applies in addition to procurement law?
- Data protection and official secrecy: GDPR, the Austrian Data Protection Act (DSG) and official secrecy; details in the guide DSG and official secrecy.
- Sign-in: many authorities want to use ID Austria or the Portalverbund (the Austrian public-sector portal network); see the guide ID Austria and AI.
- Funding: programmes for AI in Austria are listed in the guide Funding in Austria and Switzerland.
Not legal advice: This overview does not replace a review by your procurement office. Rules of the federal states and transitional provisions may differ; research as of 11.10.2026.
How does this work with basebox?
In Austria, basebox offers the cloud and the server. The cloud runs in our data centre in Munich-East, that is, in the EU; the server is at your site, without an internet connection if you wish. Support and the interface are available in German and English. ID Austria (OpenID Connect or SAML2/PVP2) and the Portalverbund (SAML2) can technically be connected through the user directory of basebox; we clarify the connection in the project. The list prices in the calculator help you estimate the contract value in advance, and the tender generator provides a product-neutral template that your procurement office adapts to the BVergG.
Frequently asked questions
Does the €140,000 limit for direct awards apply permanently?
Yes. Since the Procurement Law Act 2026, the limit is set in the BVergG 2018 itself (§ 46 para. 2) and is tied to the threshold for central public contracting authorities. This replaces the temporary threshold ordinances of previous years.
Can municipalities buy through the Bundesbeschaffung GmbH?
Yes. The BBG is the central purchasing body and concludes framework agreements that federal states, municipalities and associations of municipalities can also use. A basic agreement with the BBG is required. Ask the BBG whether a suitable agreement for AI platforms exists.
May we talk to providers before the tender?
Yes. Market exploration is permitted (§ 24 BVergG 2018). If a provider was involved in the preparation, the contracting authority must ensure that competition is not distorted, for example by giving all bidders the same information (§ 25).
Sources
- Federal Procurement Act 2018, version of 11.10.2026 (RIS, German) ↗
- Delegated Regulation (EU) 2025/2152: thresholds from 1.1.2026 (EUR-Lex, German) ↗
- Austrian business service portal (USP): Procurement Law Act 2026, opportunities for SMEs (German) ↗
- Austrian Economic Chamber (WKO): highlights of the Procurement Law Act 2026 (German) ↗
- Bundesbeschaffung GmbH: everything for municipalities and cities (German) ↗
- Bundesbeschaffung GmbH: basic agreement (PDF, German) ↗
This article was created with the help of AI, based on the sources listed. Responsible for the content: basebox GmbH. Not legal advice, no liability. Research as of 11 October 2026.