NACE 87 – Residential Care Activities | Public Tenders

NACE 87: Residential care and accommodation facilities in public tenders. Social housing facilities, CPV codes and contracting authorities at a glance.

Definition: NACE 87 covers residential facilities providing care services, including nursing homes for the elderly, facilities for persons with disabilities, psychiatric residential facilities, as well as addiction and drug treatment centres with overnight accommodation. The division is part of Section Q (Human health and social work activities).

What does NACE 87 cover?

NACE 87 (Residential care activities) classifies residential care and accommodation facilities — a sector in which public operators, non-profit organisations and private providers compete for contracts and concessions.

Group	Title	Typical services
87.1	Residential nursing care activities	Full inpatient elderly care, short-term care, dementia care
87.2	Residential care activities for mental retardation, mental health and substance abuse	Psychiatric residential homes, addiction rehabilitation
87.3	Residential care activities for the elderly and disabled	Assisted living for the elderly, day care
87.9	Other residential care activities	Homeless shelters, youth residential facilities, refugee accommodation

Public Tenders – Residential care services

Public contracting authorities award the operation of care facilities, support services and associated services — frequently as service concessions or as framework agreements with non-profit operators.

Typical types of contract

Operation of nursing homes: Concession awards for inpatient elderly care by municipalities and social welfare bodies
Assisted living: Award of service contracts for outpatient care in residential facilities
Refugee accommodation: Operation and care of accommodation for asylum seekers and refugees
Youth residential facilities and youth welfare: Inpatient child and youth welfare, educational support
Homeless shelters: Operation of municipal emergency accommodation and counselling facilities

Relevant CPV codes

CPV code	Title	Scope
85311000	Social work services with accommodation	Inpatient social services
85311100	Welfare services for the elderly	Elderly care, nursing-home services
85311200	Welfare services for disabled people	Integration assistance, residential homes for people with disabilities
85311300	Welfare services for children and young people	Youth welfare, residential placement
85312500	Rehabilitation services	Rehabilitation facilities, therapy services

Contracting authorities

Typical contracting authorities under NACE 87 are:

Social welfare bodies and regional governments: Award of care places and home-place contingents
States and municipalities: Operation or commissioning of nursing homes, youth welfare facilities
Federal ministries (interior, social affairs): Accommodation of asylum seekers, refugee shelters
Health insurance institutions: Short-term care facilities, rehabilitation facilities
Youth welfare offices: Inpatient child and youth welfare, foster-family placement

FAQ

Are social services exempt from procurement law? No — but they fall under "special services" pursuant to Annex XIV of Directive 2014/24/EU with an elevated threshold of EUR 750,000 and simplified procedures. Below that, the relevant national rules apply. Many awards are also made as concessions.

Can non-profit operators be given preferential treatment? A general preference for non-profit organisations is not permitted under EU procurement law. For the provision of certain social services, however, reserved awards to non-profit institutions (Article 77 of Directive 2014/24/EU) can be used.

NACE Q – Human Health and Social Work Activities: Parent section
NACE 87.1 – Residential nursing care activities: Subgroup inpatient elderly care
NACE 87.9 – Other residential care activities: Subgroup homeless, refugees
NACE 88 – Social work activities without accommodation: Related division outpatient social services

Last updated: January 2026