Danish Agency for Governmental IT Services Awards €1.99 Million SAP Support Contract

Økonomistyrelsen (Danish Agency for Governmental IT Services) has awarded a €1.99 million support and maintenance contract for SAP licenses to SAP Danmark A/S. The contract covers software support, maintenance, and security updates for the State Budget System (SBS), and was awarded through a negotiated procedure without prior publication due to SAP's exclusive rights.

Introduction

The Danish State Budget System (Statens Budgetsystem – SBS) is a critical government IT system that supports the management of Denmark's public finances. Reliable software support and maintenance are essential for the continued operation and security of this system.

Økonomistyrelsen has awarded a €1.99 million contract to SAP Danmark A/S for support and maintenance of SAP licenses used in the SBS. The contract was awarded through a negotiated procedure without prior publication due to SAP's exclusive rights and technical requirements.

This procurement ensures that Denmark's state budget system continues to operate securely and efficiently.

Why This Contract Matters

The State Budget System is a critical component of Denmark's public financial management. This contract ensures the continued operation, security, and support of the SAP-based system.

This contract matters because it:

• Supports critical government IT: Maintains the State Budget System (SBS)
• Ensures system security: Provides security updates and maintenance
• Significant value: €1.99 million contract
• Exclusive supplier: SAP is the only provider due to intellectual property rights
• Direct award: Negotiated procedure without prior publication
• Long-term support: Open-ended agreement
• Large supplier: SAP is a global leader in enterprise software

Contract Timeline

• Contract award notice published: 19 August 2026 (OJ S 159/2026)
• Contract concluded: 26 June 2026
• Coverage start date: Not specified
• Coverage end date: Open-ended (unlimited duration)

Contract Overview

Økonomistyrelsen conducted a negotiated procedure without prior publication for this procurement. The contract covers support, maintenance, and security updates for SAP licenses used in the State Budget System (SBS).

Key features include:

• Single lot: SAP license support and maintenance
• Duration: Open-ended (unlimited)
• Value: €1,988,050.00
• Evaluation: Price only (100%)
• Procedure type: Negotiated without prior call for competition
• Justification: Exclusive rights (intellectual property rights)
• Winner: SAP Danmark A/S

Key Contract Details

Detail	Information
Contracting authority	Økonomistyrelsen (Danish Agency for Governmental IT Services)
Winning bidder	SAP Danmark A/S
Contract subject	SAP license support and maintenance (CPV 72000000, 72261000)
Procedure type	Negotiated without prior call for competition (direct award)
Legal basis	EU Directive 2014/24/EU (Danish Procurement Act § 80, stk. 3, nr. 2)
Awarded value (EUR)	€1,988,050.00
Contract duration	Open-ended (unlimited)
Bids received	1
EU funding	None
Covered by GPA	Yes
Evaluation criteria	Price only (100%)
Subcontracting	Not yet known
Justification	Exclusive rights (intellectual property rights)

Project Scope

The contract covers support, maintenance, and security updates for SAP licenses used in the State Budget System (SBS):

Services Covered

• Software support: Technical support for SAP licenses
• Maintenance: Ongoing maintenance of SAP software
• Security updates: Security patches and updates
• System operation: Support for the State Budget System (SBS)

System Context

• Statens Budgetsystem (SBS): Denmark's state budget system
• Platform: SAP-based system
• Purpose: Public financial management and budgeting

Contract Features

• Open-ended duration: Unlimited contract period
• Direct award: No competition due to exclusive rights
• Single supplier: SAP is the only provider

About the Contracting Authority

Økonomistyrelsen (Danish Agency for Governmental IT Services) is a Danish central government authority responsible for IT services and financial management systems for the Danish state. The agency manages the State Budget System (SBS) and other critical government IT systems.

About the Winning Company

SAP Danmark A/S is the Danish subsidiary of SAP SE, the global leader in enterprise software. SAP provides enterprise resource planning (ERP), financial management, and other business software solutions to public and private sector clients worldwide. SAP Danmark A/S is the only provider capable of delivering support and maintenance for the existing SAP licenses due to intellectual property rights and technical requirements.

Procurement Analysis

• Procedure: A negotiated procedure without prior call for competition (direct award) was used, justified by SAP's exclusive rights and technical requirements.
• Justification: The contract could only be awarded to SAP because:
  • SAP holds intellectual property rights for the software
  • Technical requirements mean only SAP can provide the services
  • No reseller market exists for these specific services
  • No reasonable alternatives or substitutes exist
• Competition: Only one bid was received (from SAP), reflecting the sole-source nature of the procurement.
• Evaluation criteria: Price only (100%).
• Value: €1,988,050 for an open-ended contract.

Additional Procurement Facts

• The contract is covered by the WTO's Government Procurement Agreement (GPA).
• No EU funds were used for this procurement.
• The procurement was not accelerated.
• No dynamic purchasing system was used.
• No framework agreement was used—this is a direct service contract.
• Only one bid was received.
• The contract was awarded under the Danish Procurement Act § 80, stk. 3, nr. 2.
• Disputes or review requests fall to Klagenævnet for Udbud.
• Supports the State Budget System (SBS).

Market & Industry Perspective

Enterprise software support and maintenance is often a sole-source market due to intellectual property rights and technical requirements. SAP, Oracle, and Microsoft are dominant players in the enterprise software market, and their support services are typically only available from the vendor directly.

Key trends in this market include:

• Vendor lock-in: Enterprise software support is often vendor-specific
• Sole-source procurement: Direct awards are common for support services
• Long-term contracts: Support agreements are often open-ended
• Security focus: Security updates are critical
• Public sector: Government IT systems require reliable support

Economic Significance

At €1.99 million, this contract represents a significant investment in the maintenance and security of Denmark's state budget system. The contract ensures:

• System stability: Reliable operation of the SBS
• Security: Protection against vulnerabilities
• Public financial management: Supports government budgeting
• Vendor support: Access to SAP's expertise

Future Procurement Opportunities

With the contract now in place, future opportunities include:

• Contract continuation: Open-ended support agreement
• System upgrades: Potential SAP system upgrades
• Other government IT: Similar support contracts for other government systems
• Consulting services: SAP consulting and implementation services

Opportunities for Suppliers

While this contract is awarded, future opportunities exist for enterprise software suppliers:

• Other government IT: Similar support contracts for other government systems
• Consulting: SAP consulting and implementation services
• Training: SAP training and user support
• Subcontracting: Suppliers may find subcontracting opportunities with SAP

What Businesses Should Watch

• Other Danish government IT support tenders
• Enterprise software upgrades and migrations
• Changes to Danish public procurement regulations
• EU software procurement guidelines
• Government IT modernisation programmes

DenmarkTenders Procurement Intelligence

This SAP support contract is a straightforward sole-source procurement for critical government IT. Several features stand out:

• Scale: €1.99 million for support services
• Sole-source: SAP is the only provider due to intellectual property rights
• Critical system: Supports the State Budget System
• Open-ended: Unlimited contract duration
• Price focus: Price-only evaluation

For suppliers, this procurement highlights the importance of:

• Vendor lock-in: Enterprise software support is often vendor-specific
• Competitive pricing: Price is the key criterion
• Government IT expertise: Understanding public sector IT needs
• Security focus: Security updates are critical

Supplier Takeaways

• Offer competitive pricing—price is the key criterion
• Understand vendor lock-in in enterprise software support
• Develop government IT expertise
• Focus on security and reliability
• Monitor other government IT support tenders
• Consider partnering with SAP or other enterprise software vendors

Key Takeaways

• Danish Agency for Governmental IT Services awarded a €1.99 million SAP support contract to SAP Danmark
• Services: Support, maintenance, and security updates for SAP licenses
• Supports: State Budget System (SBS)
• Procedure: Negotiated without prior call for competition (direct award)
• Justification: Exclusive rights (intellectual property rights)
• Only 1 bid received
• Contract duration: Open-ended (unlimited)
• No EU funding used

Conclusion

This SAP support contract represents a critical procurement for the Danish State Budget System. By awarding the contract to SAP Danmark through a negotiated procedure without prior publication, Økonomistyrelsen ensures that the SBS continues to receive essential support, maintenance, and security updates.

The sole-source nature of the procurement reflects the reality of enterprise software support, where intellectual property rights and technical requirements often make the vendor the only capable provider. The €1.99 million contract ensures the stability and security of a critical government financial management system.

As government IT systems continue to evolve, similar support contracts will be required for enterprise software platforms, providing opportunities for vendors with the right expertise and capabilities.

Frequently Asked Questions

Q: What is Økonomistyrelsen?

Ans: The Danish Agency for Governmental IT Services, responsible for IT services and financial management systems for the Danish state.

Q: What is the State Budget System (SBS)?

Ans: Denmark's state budget system (Statens Budgetsystem), a SAP-based system for public financial management.

Q: What is the value of the contract?

Ans: €1,988,050.00.

Q: Who won the contract?

Ans: SAP Danmark A/S.

Q: Why was the contract awarded directly?

Ans: Due to SAP's exclusive rights (intellectual property rights) and technical requirements, meaning only SAP could provide the services.

Q: What services are covered?

Ans: Support, maintenance, and security updates for SAP licenses used in the State Budget System.

Q: How long is the contract?

Ans: Open-ended (unlimited duration).

Q: Is this contract funded by the EU?

Ans: No, the procurement is not financed with EU funds.

Source: EU Official Journal, Contract Award Notice 573816-2026, OJ S 159/2026, published 19 August 2026.