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Procurement law3 min read

§ 99 GWB: Who is a public contracting authority?

Who counts as a public contracting authority under Section 99 GWB? The four categories, public GmbHs and subsidized construction projects explained in plain terms.

Sönke Bink

Summarise with AI

Section 99 GWB (German Act against Restraints of Competition) defines who is a public contracting authority. Besides the federal government, the states (Bundesländer) and municipalities, other organizations can also fall under it. This matters for bidders because, together with the type of contract, its value and possible exemptions, it determines which procurement regime applies. Section 99 GWB

Legal and source status: September 5, 2026. GWB Part 4 in practice explains the wider context.

The four categories of Section 99 GWB

CategoryCore of the statutory definition
Number 1Regional and local authorities and their special funds
Number 2Certain legal entities with non-commercial tasks in the general interest and public dependency
Number 3Associations whose members fall under Number 1 or 2
Number 4Contracting authorities for certain projects that are predominantly publicly subsidized

Under Number 2, the purpose of the tasks and public dependency must be looked at together. For the latter, the law names alternative links: predominant financing, management supervision, or public appointment of more than half of the members of a management or supervisory body. It also covers certain indirect constellations. Section 99 Numbers 1 to 3 GWB

An extract from the commercial register can show the legal form, but it does not answer every question about tasks, financing or control. So also collect the articles of association, information on shareholdings and the details in the contract notice. Mark which requirement is documented and which remains open.

Why funding alone is not enough

Number 4 only covers the construction projects named there and the services and design contests connected with them. These include, for example, civil engineering works and the construction of certain school, hospital or administrative buildings. The public subsidy must exceed 50 percent. Section 99 Number 4 GWB

Fictional example: A private operator receives 60 percent public funding to build a school building. That is a reason to check Number 4 for this project. It does not allow a general statement about every later purchase by the operator. The team should also check the funding decision for its own procurement requirements.

Public contracting authority or sector contracting entity?

Section 98 distinguishes public contracting authorities under Section 99, sector contracting entities under Section 100 and concession grantors under Section 101. Public contracting authorities can also be sector contracting entities if the statutory requirements are met. For the specific procedure, it also matters whether the purchase serves the sector activity. The SektVO guide explains the distinction. Section 98 GWB, Section 100 GWB, Section 106 (2) GWB

Three checks for bidders

  1. Identify the organization that actually signs the contract. Portal operators and procurement service providers can be different bodies.
  2. Assign this organization to a category based on verifiable information. Note any doubts with a specific source.
  3. Then check the type of contract under Section 103 and the threshold under Section 106. Status as a contracting authority alone does not complete this check.

Frequently asked questions

Can a GmbH be a public contracting authority?

Yes. A legal entity under private law can fall under Section 99 Number 2 in particular, if the statutory purpose of its tasks and one of the forms of public dependency named there are present. The legal form alone does not decide.

Does public funding automatically make an organization a public contracting authority?

No. Section 99 Number 4 covers certain projects named in the law with a subsidy of more than 50 percent. In addition, funding decisions can contain their own procurement obligations.