Public-Public Cooperation (PPC) in Public Procurement Law 2026

PPC – Public-Public Cooperation: procurement-law-free cooperation between public contracting authorities for joint task performance.

Definition: Public-Public Cooperation (PPC) refers to the contractually regulated cooperation between two or more public contracting authorities for the joint performance of public tasks, which under certain conditions is excluded from the scope of procurement law.

Last updated: January 2026 · Legal basis: Art. 12 para. 4 Directive 2014/24/EU; § 108 para. 6 GWB; § 10 para. 5 BVergG 2018

What is public-public cooperation?

Public-Public Cooperation (PPC) is a cooperation model privileged under procurement law in which several public contracting authorities jointly perform public tasks without a tender being required. The exemption from procurement law is regulated in Art. 12 para. 4 of Directive 2014/24/EU and implemented in § 108 para. 6 GWB (Germany) and § 10 para. 5 BVergG 2018 (Austria).

The model enables public bodies to pool their resources and exploit synergy effects without the bureaucratic effort of a formal tender.

Conditions for procurement-law exemption

In order for a PPC to be exempted from procurement law, the following conditions must be cumulatively met (Art. 12 para. 4 Directive 2014/24/EU):

Cooperation to achieve common objectives: The cooperation must serve the performance of public tasks that all participating contracting authorities have in common.
Exclusive governance by public interest considerations: The implementation of the cooperation must be governed solely by considerations of public interest.
No more than 20 % market participation: The market-oriented activity of the participating public entities within the cooperation must not exceed 20 % of the total activities.
No private owners in the cooperation partners: The cooperation partners must not have private equity participations (with exceptions in cases of statutory obligation).

Distinction from in-house award

PPC and in-house award are both exemptions from procurement law, but concern different scenarios:

In-house award (§ 108 paras. 1-5 GWB): A contracting authority awards to its own controlled entity (vertically or horizontally).
PPC (§ 108 para. 6 GWB): Two equally ranked public bodies cooperate without a hierarchical relationship.

Typical fields of application

PPC models are frequently found in the following areas:

Joint waste disposal of several municipalities
Inter-municipal water supply
Joint IT operations of municipal computing centres
Cooperation of authorities in procurement (purchasing groups)
Cooperation of hospitals under public ownership

Risks and limits

Reliance on the PPC exemption carries risks if the conditions are not carefully examined. An incorrect assessment leads to a de facto award without a tender, which is challengeable in the review procedure and may result in the ineffectiveness of the contract.

Related terms

FAQ

Must a PPC be agreed in writing? Yes. The cooperation agreement should be documented in writing and the conditions for the procurement-law exemption should be verifiable.

Can a PPC also exist across borders (e.g. between German and Austrian authorities)? In principle yes, provided that the applicable law and the conditions of Art. 12 para. 4 Directive 2014/24/EU are observed. Practical implementation, however, is complex.

What happens if private companies participate in a PPC? The procurement-law exemption ceases to apply as soon as private equity participations exist in the cooperating entities. In this case, procurement law must be complied with.

Last updated: January 2026 All information without guarantee. For legally binding information, please consult a law firm specialising in procurement law.