Economic Operator in Procurement Law 2026
Economic operator: the EU-law term for all undertakings and persons that can participate in public procurement competitions.
Definition: An economic operator is any natural or legal person or public entity, or group of such persons and/or entities, that offers on the market the execution of works, the construction of buildings, the supply of goods or the provision of services.
Last updated: January 2026 · Legal status: Art. 2 para. 1 no. 10 Directive 2014/24/EU; § 7 GWB; § 2 no. 42 BVergG 2018
What is an economic operator?
The term "economic operator" is the central EU-law umbrella term for all potential contractors in public procurement. It is defined in Art. 2 para. 1 no. 10 of Directive 2014/24/EU and deliberately covers a broad range of persons: natural persons (e.g. sole traders, freelancers), legal entities under private law (limited liability companies, public limited companies, associations) and under public law (public undertakings, corporate bodies), as well as groupings of such entities (bidding consortia, consortia).
In German law, the term is taken up by § 7 GWB; the Austrian BVergG 2018 defines it in § 2 no. 42.
Categories of persons covered
The term is deliberately broad, in order to enable the widest possible competition among bidders:
- Entrepreneurs: Commercial actors of any legal form
- Freelancers: Architects, engineers, lawyers, tax advisors, etc.
- Bidding consortia (ARGE): Temporary associations of several economic operators
- Public undertakings: State or municipal entities that are active on the market
- Third-country undertakings: Undertakings from non-EU states, insofar as trade agreements (e.g. the GPA) require equal treatment
Delimitation: candidate and bidder
Over the course of the procedure, the economic operator takes on different roles depending on the stage:
| Stage | Designation |
|---|---|
| Before submission of a request to participate | Economic operator (potential) |
| After submission of a request to participate | Candidate |
| After submission of a tender | Bidder |
| After the award of contract | Contractor |
Requirements for economic operators
Economic operators must meet certain suitability requirements in order to be able to participate in a procurement procedure. These concern:
- Authorisation (trade licence): The right to provide the tendered service commercially.
- Reliability: No grounds for exclusion pursuant to §§ 123, 124 GWB or §§ 68 et seq. BVergG 2018.
- Capacity: Technical, economic and financial capacity to perform the contract.
Related terms
FAQ
Can a public undertaking also be an economic operator? Yes. Public undertakings that offer services on the market qualify as economic operators and may participate in procurement procedures, provided that they meet the suitability requirements.
Can an economic operator from a third country participate in EU procurement procedures? In principle, only if an international trade agreement (e.g. the WTO Government Procurement Agreement, GPA) provides for equal treatment.
What is the difference between an economic operator and an undertaking? "Economic operator" is the procurement-law umbrella term; it also covers natural persons and public entities that are not classically referred to as "undertakings".
Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialised in procurement law.
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