NACE 25.4 – Manufacture of Weapons and Ammunition | Public Tenders

NACE 25.4: Weapons and ammunition in public procurement. Defence procurement, defence contracts, CPV codes and special procurement-law features.

Definition: NACE 25.4 covers the manufacture of small arms, artillery, missiles, torpedoes, grenades, bombs and other military and police ammunition as well as explosives. The sector is closely linked to state defence procurement.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 25.4 cover?

NACE 25.4 (Manufacture of weapons and ammunition) classifies defence companies that manufacture military and police equipment — a procurement segment of high sensitivity with its own legal regime.

Class	Title	Typical outputs
25.40	Manufacture of weapons and ammunition	Small arms, military weapons, artillery systems, ammunition of all calibres, explosives

The group covers military equipment (armed forces, national armed forces), police armament (pistols, sub-machine guns, cartridges for law-enforcement authorities) and hunting weapons in the civilian sector.

Public tenders: defence procurement and weapons contracts

The procurement of weapons and ammunition by public contracting authorities is subject to special procurement-law exemptions — at the same time, this area is one of the highest-volume segments of state procurement.

Typical contract types

Small arms for police: federal criminal police, state police and border police procure service pistols and revolvers
Ammunition procurement for armed forces: armed forces and allied forces procure cartridges, artillery ammunition and guided missiles
Security authorities: customs, intelligence services and military police procure specific armament
Government-to-government export deliveries (G2G): government-to-government procurement outside regular procurement law
Spare-parts supply and maintenance: long-term maintenance contracts for military weapons systems

Relevant CPV codes

CPV code	Title	Application area
35300000	Weapons, ammunition and associated parts	Parent category
35310000	Various weapons	Light and small arms
35321000	Artillery	Artillery systems and ammunition
35340000	Parts of firearms and ammunition	Spare parts, accessories
35800000	Personal and support equipment	Ballistic protective equipment

Contracting authorities and bidders

Public contracting authorities

The Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) is the central buyer of military equipment in Germany. In Austria, this function is performed by the Armed Forces Logistics Centre. Police procurement is handled by state procurement offices and the Federal Criminal Police Office.

Procurement-law features

Defence procurement is subject to the special procurement regime of Directive 2009/81/EC (Defence Procurement Directive), implemented in Germany through the VSVgV (Procurement Ordinance for Defence and Security). Key features:

Possibility of the negotiated procedure without prior call for competition on security grounds
Confidentiality and information-security requirements
Security requirements for subcontractors (security screening)
National preference possible under certain conditions

Frequently asked questions on NACE 25.4 and public tenders

Can weapons procurement be exempted from regular procurement law? Yes. Article 346 TFEU allows Member States to exclude essential security interests from the application of internal-market law. In practice, this is interpreted narrowly — the VSVgV is intended to transpose Directive 2009/81/EC in full and serves as a specialised procurement regime for the defence sector.

Can smaller arms dealers (non-manufacturers) participate in police tenders? Yes, provided they act as authorised dealers of the manufacturers and meet the eligibility requirements (arms-trading licence, security evidence, supply capability). Manufacturer certificates and original-manufacturer warranties are frequently required.

NACE C – Manufacturing: parent section
NACE 25 – Fabricated metal products: parent division
NACE 30.4 – Military fighting vehicles: related defence goods
NACE 26.5 – Measuring and navigation instruments: military guidance systems

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