The German Textile and Fashion Industry Federation (Gesamtverband textil+mode) is urgently warning the German Bundestag about the potential negative consequences for small and medium-sized enterprises (SMEs or Mittelstand) stemming from the currently debated public procurement law reform. Uwe Mazura, CEO of the Federation, stressed the need to safeguard access for SMEs to public contracts, particularly those with the Bundeswehr (German Armed Forces).
The Federation's appeal comes ahead of a public hearing of the Committee for Economic Affairs and Energy in the German Bundestag on the Bundeswehr's planning law, scheduled for November 10. While acknowledging and welcoming the goal of making procedures more efficient, Mazura cautioned that the reform's design "must not be at the expense of small and medium-sized enterprises," warning that if the draft regulations are passed as is, "the Mittelstand is once again in danger of drawing the short straw".
Critical concerns with the proposed reform
The Federation identifies several key areas of concern within the proposed reform that could structurally disadvantage smaller businesses. The planned expansion of direct awarding (Direktvergabe)—where public contracts can be granted immediately without a tender process—is viewed as particularly critical. This system primarily benefits large companies with established government contacts and extensive service offerings, making it difficult for smaller businesses to be considered. The industry considers the softening of the established "lot procedure" (Losverfahren), which previously required the mandatory division of large contracts into smaller lots as a central instrument for ensuring SME participation, a setback. Relaxing this rule risks centralized large-scale procurements, detrimental to many specialized businesses. Furthermore, the proposed limitation on the legal reviewability (rechtliche Nachprüfbarkeit) of the procurement process is seen as jeopardizing legal certainty. SMEs, in particular, rely on transparent and verifiable procedures, and weakening these control mechanisms would also structurally disadvantage them.
Demands for fairer competition To secure fair competitive conditions, the Gesamtverband textil+mode is urging a revision of the reform in favor of the Mittelstand, calling for the following specific measures: They demand a mandatory procurement quota for SMEs, meaning a legally defined share of public contracts should be reserved for small and medium-sized enterprises. The retention of the lot procedure is also necessary, insisting the obligation to divide large contracts into smaller lots must be maintained. The Federation requires transparent procedures, meaning all procurement processes must remain traceable and reviewable, without restricting legal reviewability. Lastly, they are calling for equal opportunities in direct awards, ensuring that medium-sized suppliers must also be considered even in accelerated procedures.
CEO Mazura concluded with a powerful statement: "Politicians praise the Mittelstand in all their Sunday speeches: It is the backbone of the economy. If we now make it more difficult for them to access public contracts, we weaken not just individual companies, but entire value chains in Germany and Europe," he said. He stressed that a procurement reform "must not become an open door for distortion of competition; it must ensure equal opportunities for all companies, regardless of size".
