Economic Operator in Public Procurement 2026 – Concept and Significance

Definition: In public procurement law the term "economic operator" (Unternehmer) covers any natural or legal person and any public entity, or group of such persons, that offers on the market the execution of works, the supply of goods or the provision of services.

Last updated: January 2026 · Legal status: § 97 (1) GWB, § 7 GWB, Art. 2 (1) No. 10 Directive 2014/24/EU

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The concept of "economic operator" in procurement law

The term "economic operator" in the procurement law sense is broad and covers all natural and legal persons as well as groups of persons that can appear as suppliers on the market. It is a generic term that, depending on the stage of the procurement procedure, is given concrete form by the more specific terms "candidate" and "tenderer":

• Economic operator: general term for any potential market participant
• Candidate: an economic operator that has submitted a request to participate in a restricted procedure or negotiated procedure
• Tenderer: an economic operator that has submitted a tender

This distinction is legally relevant, because the remedies rules (entitlement to initiate review proceedings) and the contracting authority's information duties each attach different conditions to the status of the economic operator.

Who qualifies as an economic operator?

Procurement law sets no special requirements as to the legal form of the economic operator. The following can act as economic operators in the procurement law sense:

• Sole traders and members of the liberal professions
• Partnerships (OHG, KG, GbR)
• Corporations (GmbH, AG)
• Cooperatives
• Not-for-profit organisations and associations (to the extent that they pursue an economic activity)
• Public undertakings and mixed-economy companies
• Bidding consortia (temporary groupings of several economic operators)

Foreign undertakings from EU Member States and — under certain conditions — from third countries can also act as economic operators within the meaning of German procurement law.

Distinction: contracting authority and economic operator

Procurement law draws a strict distinction between the contracting authority on the one hand and the economic operator on the other. Contracting authorities are subject to procurement law as purchasers; economic operators are the suppliers participating in competition for public contracts. In some constellations a public undertaking can be both a contracting authority for certain procurements and an economic operator (as a tenderer) for other contracts.

Rights and duties of the economic operator

As a participant in a procurement procedure the economic operator has both rights and duties:

The most important rights include:

• The right to equal treatment and non-discrimination (§ 97 (2) GWB)
• The right to be informed of grounds for exclusion and award decisions
• The right to a review of procurement law breaches (§§ 155 et seq. GWB)

The duties include:

• Complete and truthful information in requests to participate and tenders
• Compliance with grounds for exclusion (self-declaration, § 124 GWB)
• Confidentiality vis-à-vis competitors

FAQ

Can a bidding consortium act as an economic operator? Yes, bidding consortia are recognised in procurement law as a special form of economic operator. They must, however, name an authorised representative and are jointly and severally liable.

May public undertakings participate in procurement procedures? In principle yes, provided they operate on the market and have the relevant suitability. The same rules apply as for private undertakings; distortion of competition through state aid is, however, impermissible.

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Last updated: January 2026 All information provided without warranty. For legally binding advice, consult a law firm specialising in public procurement law.