Public procurement duties do not depend solely on legal form. A private-law company can be a contracting authority, while receipt of public money does not automatically make every activity subject to the same regime. The statutory category must be established.
Public bodies and controlled entities
Section 99 GWB covers public territorial bodies and other defined entities. For a body established to meet needs in the general interest without an industrial or commercial character, the statutory financing, supervision or board-appointment links require examination. A company name or public shareholding alone does not replace the full assessment.
Evidence of organisation
Review the constitution, purpose, financing, appointment rights and actual supervision. Consider the market environment and how tasks are carried out. Changes to ownership, funding or activities may require reassessment. A historic classification should not be treated as permanently conclusive when the underlying facts have changed.
Project-specific and sector categories
Section 99(4) contains a particular rule for certain predominantly publicly subsidised projects. Utilities entities and concession grantors are separately defined. Analyse the contract and relevant activity rather than assuming one classification answers every purchase. A private organisation may also be bound by grant conditions even where the GWB category is not met.
Consequences for the procurement
Once status is determined, examine contract type, value and exceptions. Record the reasoning before choosing the procedure. An entity’s general corporate powers and its procurement obligations are different questions. A lawful internal authorisation to buy does not establish that competition requirements have been satisfied.
Four practical examples
The following scenarios are illustrative, not reports of actual client matters. The outcome depends on the documents and circumstances of the individual procurement.
Example 1: Municipal company
A wholly municipal company buys services. Assess purpose, non-commercial character and public dependence under the relevant provision. Its private-law form does not automatically remove procurement duties.
Example 2: Subsidised building
A private body receives majority public funding for a specified type of project. Consider section 99(4) and the grant conditions. Not every subsidy brings every purchase within that provision.
Example 3: Municipal association
Several councils establish a joint body. Determine its statutory status and any applicable special rules. Transferring the task does not automatically eliminate procurement obligations.
Example 4: Private utility
A privately owned network operator buys equipment. Examine utilities-entity status and the covered activity separately. Absence of ordinary authority status does not settle the sector analysis.
Related topics
Public contracts: definition and classification · In-house awards and public-public cooperation · Utilities procurement: energy, water and transport
Discuss your procurement
For a review, please identify the authority, contract or lot, current procedural stage and any deadline. We can then clarify the scope of the requested work. Contact our team. An enquiry does not itself create a retainer or preserve a legal deadline.
Legal sources
Official legislation and materials, some in German: § 98 GWB · § 99 GWB · § 100 GWB · § 101 GWB
Updated 13 November 2026. Illustrative guidance on German and EU procurement law.