Service in Public Procurement 2026

Service in public procurement: umbrella term for works, supplies and services that public contracting authorities procure through regulated tendering procedures.

Definition: In public procurement, "service" (Leistung) is the umbrella term for all works, supplies and services that a public contracting authority obtains from a private undertaking in return for payment and which, from the relevant thresholds upwards, must be procured through a regulated tendering procedure.

Last updated: January 2026 · Legal basis: Directive 2014/24/EU, BVergG 2018, GWB § 97

What is a "service" in public procurement law?

The term "service" (Leistung) is the fundamental collective term of public procurement law and refers to everything a public contracting authority procures on the market. It covers the three classic contract types – works, supplies and services – as well as newer forms of procurement such as concessions. The correct classification of a service into one of these categories is decisive under procurement law, as the applicable rules, thresholds and procedure types depend on it.

Types of services

Works

Works contracts cover the execution or turnkey construction of buildings and civil-engineering works as well as associated engineering services. They are listed in Annex II of Directive 2014/24/EU and regulated in Germany by VOB/A. The EU threshold for works currently stands at EUR 5,538,000.

Supplies

Supply contracts are contracts for the purchase, leasing, rental or hire-purchase of goods. They may include ancillary services such as assembly, installation and maintenance, provided these do not constitute the main subject matter of the contract.

Services

Service contracts cover all contracts that cannot be classified as works or supply contracts. These include consulting services, IT services, cleaning services, security services, planning services and many others.

Distinguishing between types of service

Distinguishing between types of service is significant for mixed contracts, since the applicable procedural law depends on the main service.

For mixed contracts: the main subject matter of the contract is decisive. This is generally determined by the higher contract value of the respective type of service (Art. 3 Directive 2014/24/EU).

Significance of the specifications

Precise specifications are the fundamental precondition for a lawful and successful tendering procedure. Only where the service is described clearly, exhaustively and neutrally can bidders submit comparable bids and the contracting authority award the contract to the most economically advantageous tender.

Related terms

FAQ

What happens if a type of service is misclassified? Incorrect classification can lead to the application of incorrect thresholds and procedural rules, rendering the entire award challengeable.

Can services be awarded by lots? Yes. Public contracting authorities are in principle required under § 97 (4) GWB or § 58 BVergG 2018 to award by lots in order to support SMEs.

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