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Contracting authority

The contracting authority is the public body that tenders services and awards contracts as part of a procurement procedure.

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What does contracting authority mean?

In German procurement law, the term contracting authority (Auftraggeber) refers to the public body or institution that has a procurement need and meets it on the market through a formal procurement procedure. Under Section 99 GWB (German Act against Restraints of Competition), public contracting authorities include in particular regional authorities (the federal government, the federal states and municipalities), their special funds and other legal persons governed by public and private law that were established for the specific purpose of meeting needs in the general interest that are not of an industrial or commercial nature, and that are mainly publicly financed or controlled.

Besides classic public contracting authorities, procurement law also recognizes sector contracting entities (Section 100 GWB), which operate in water, energy, transport and telecommunications, as well as concession grantors. Each of these categories is subject to specific procurement rules, which are reflected in the applicable ordinances (VgV, SektVO, KonzVgV). The contracting authority is responsible for the proper conduct of the entire procurement procedure, from determining the need and preparing the procurement documents to the award and documentation.

A key principle is that the contracting authority must uphold the principles of transparency, equal treatment and competition. It is required to tender the contract in a way that allows fair competition and rules out discrimination against individual bidders. The awarding office (Vergabestelle), as the executing body of the contracting authority, handles the operational processing.

Relevance for bidders

For companies that take part in public tenders, it is essential to classify the contracting authority correctly. The type of contracting authority determines which procurement law applies and which legal remedies are available in a dispute. For example, public contracting authorities above the EU thresholds are subject to the strict rules of GWB procurement law, with the option of a review before the public procurement tribunal (Vergabekammer).

Bidders should also check whether the contracting authority uses central purchasing bodies, because this can affect the tender process and the procurement documents. Identifying the responsible contracting authority also matters for communication during the procedure, for example for bidder questions or submitting evidence.

Legal framework

The definition and distinction of the different types of contracting authority are in Sections 98 to 101 GWB. In addition, the Vergabeverordnung (VgV, Public Procurement Ordinance), the Sektorenverordnung (SektVO, Sector Ordinance), the Konzessionsvergabeverordnung (KonzVgV, Concession Award Ordinance) and the Unterschwellenvergabeordnung (UVgO, Sub-Threshold Procurement Rules) govern the respective procedural obligations. At European level, EU Procurement Directives 2014/24/EU and 2014/25/EU form the basis.

Related terms

Contract volume
Contract volume refers to the estimated total value of a public contract and determines which procurement rules apply.
CPV codes
CPV codes are a uniform Europe-wide classification system for public contracts that standardizes the description of the subject matter of the contract.
Public procurement law (Vergaberecht)
Public procurement law is the body of legal rules that governs how contracting authorities must award contracts for construction work, supplies and services.
Contract notice
The contract notice is the public announcement of a tender that opens the competition and invites companies to submit bids.
Bidding consortium
A bidding consortium is an association of several companies that submit a joint bid in a public tender.
General contractor
A general contractor takes on overall responsibility for performing a public contract and coordinates the required subcontractors.
Subcontractor
A subcontractor is a company that the main contractor hires to carry out certain parts of a public contract.
Contract types
Contract types refer to the classification of public contracts into supply, service and works contracts under procurement law.
Delivery deadline
The delivery deadline is the period within which the contractor must perform the contractually owed work or deliver goods.