Not all public contracting authorities are equal. Some award contracts worth millions, others struggle with tight budgets. Some are professional procurement offices, others handle tenders as a side task. This article introduces the key contracting authorities – and shows where the big opportunities lie.

The Structure: Federal, State, Municipal, and More

Germany has thousands of public contracting authorities. They can be roughly divided into:

  • Federal authorities: Ministries, federal agencies, subordinate authorities
  • State authorities: State ministries, state offices, state enterprises
  • Municipalities: Cities, towns, counties
  • Public enterprises: Utilities, transport companies, hospitals
  • Others: Universities, foundations, social insurance carriers

Each level has its own priorities, budgets, and procurement cultures.

The Federal Level: Large Contracts, High Requirements

The Bundeswehr

The Bundeswehr (German Armed Forces) is one of Germany's largest public contracting authorities. The Federal Office of Bundeswehr Equipment (BAAINBw) in Koblenz awards contracts worth tens of billions annually.

What is procured?

  • Defense equipment and vehicles
  • IT systems and software
  • Clothing and gear
  • Services (maintenance, repair, catering)
  • Construction at barracks and facilities

Special features: - Often very specific requirements - Security clearances required - Long project durations - Framework contracts over multiple years

Where to find the tenders? The Bundeswehr publishes on the Federal e-Procurement Platform and in TED.

Autobahn GmbH

Since 2021, Autobahn GmbH des Bundes is responsible for the entire highway network. This means: planning, construction, operation, and maintenance of over 13,000 kilometers of highways.

What is procured?

  • Road construction work
  • Bridge construction and rehabilitation
  • Winter services
  • Green maintenance
  • Rest area operations
  • IT systems for traffic management

Special features: - Regional branches award contracts locally - High technical requirements - Often framework contracts for recurring services - Dedicated procurement platform

Deutsche Bahn

Deutsche Bahn and its subsidiaries are contracting authorities with enormous volume:

  • DB Netz AG: Rail network, signal boxes, stations
  • DB Station&Service: Station buildings, equipment
  • DB Fernverkehr/Regio: Vehicles, services

What is procured?

  • Track construction and overhead line work
  • Signaling technology
  • Station modernization
  • Cleaning and security
  • IT systems

Special features: - Own bidder portal (DB Supplier Portal) - Strict prequalification requirements - Safety regulations for track work - Regional trains often tendered by states (SPNV tenders)

Other Federal Contracting Authorities

BImA (Federal Institute for Real Estate Tasks): Manages federal properties – from ministries to barracks. Awards construction, planning, and facility management contracts.

GIZ (German Corporation for International Cooperation): Development cooperation worldwide. Awards consulting and project contracts, often with international scope.

The States: State Enterprises as Key Players

Construction and Property Agencies

Almost every federal state has a state enterprise for construction and property:

  • BLB NRW (Construction and Property Agency NRW)
  • Hessen Building and Real Estate Agency
  • Lower Saxony State Building Management
  • Baden-Württemberg Property and Construction Agency

These enterprises plan and build for the state: universities, courts, police stations, tax offices.

Why are they important?

  • Large construction volume
  • Professional procurement offices
  • Regular tenders
  • Often regional preferences (legally permissible under certain criteria)

State Road Construction

While highways now belong to the federal government, federal and state roads remain state responsibility:

  • Road Construction NRW
  • Bavarian Road Construction Authority
  • Saxony-Anhalt State Road Construction Agency

These are smaller projects than highways – but substantial volumes in total.

Municipalities: Volume Through Numbers

Cities and Towns

Over 11,000 municipalities in Germany award contracts daily. From major cities to villages – construction, procurement, and contracting happen everywhere.

Typical municipal contracts: - School construction and renovation - Daycare center construction - Roads and squares - Green maintenance and winter services - Building cleaning - IT equipment

Special features: - Often smaller contract volumes - Short paths, personal contact possible - Varying professionalism of procurement offices - Many contracts below thresholds

Counties

Counties are responsible for supra-local tasks:

  • County roads
  • Vocational schools
  • Hospitals (partially)
  • Waste management

Municipal Enterprises

  • Utilities: Energy, water, public transport – large investment volumes
  • Housing associations: Construction and renovation of social housing
  • Hospitals: Medical technology, IT, facility management

Social Insurance Carriers: The Underestimated Market

Health Insurance Funds

AOK, Barmer, TK and other health insurers regularly award contracts:

  • IT services
  • Office equipment
  • Facility management
  • Consulting services

Special features for medicines and medical aids:

Open-house procedures often apply here – all providers who accept the conditions are admitted.

Occupational Accident Insurance and Pension Insurance

These carriers are also public contracting authorities with regular needs.

Research and Education

Universities and Higher Education Institutions

Universities award in two areas:

  • Construction projects: Usually through state enterprises
  • Procurement: Directly by the university – laboratory equipment, IT, research devices

Research Institutions

  • Fraunhofer Society: 76 institutes with their own procurement needs
  • Max Planck Society: Basic research
  • Helmholtz Association: Large-scale research

These institutions often procure highly specialized goods and services.

Special Case: Sector Contracting Authorities

Certain contracting authorities are subject to the Sector Regulation:

  • Energy suppliers: EnBW, E.ON subsidiaries, utilities
  • Water suppliers: Municipal waterworks
  • Transport companies: Public transit operators
  • Port operators: Seaports

They have somewhat more flexibility in procurement – but strict rules still apply above thresholds.

Strategic Considerations: Which Contracting Authorities Fit You?

For Large Companies

  • Federal contracting authorities with million-euro contracts
  • Framework contracts with long terms
  • Projects requiring capacity and references

For Medium-Sized Businesses

  • State enterprises with regional projects
  • Major municipal projects
  • Sector contracting authorities in the region

For Small Companies

  • Municipalities with manageable contracts
  • Lot-based awards in large projects
  • Subcontracting for general contractors

Finding the Right Contracting Authorities

1. Analyze your strengths: Which contracting authorities need exactly what you offer?

2. Research systematically: Who has tendered similar services in the past?

3. Build relationships: Especially with municipal contracting authorities, familiarity counts – naturally within procurement law boundaries.

4. Specialize: Better to be known by ten contracting authorities than unknown to a hundred.

Conclusion: Understanding the Market

The market for public contracts is huge – but also confusing. The key to success lies in identifying the right contracting authorities and focusing on them.

From the Bundeswehr to Deutsche Bahn to the municipality around the corner – each contracting authority has its peculiarities. Understand them, and you'll acquire more successfully.

In the next article, we explore regional markets: Where is searching for tenders particularly worthwhile?