NACE 87.3 – Residential Care for the Elderly | Public Tenders

Definition: NACE 87.3 covers residential nursing homes and elderly homes that provide older people with comprehensive nursing care around the clock. Municipal and public nursing homes, as contracting authorities, are obliged to tender for operational and supply services.

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

What does NACE 87.3 cover?

NACE 87.3 (Residential care for the elderly) classifies full inpatient elderly-care facilities — a sector with a high public financing share and correspondingly substantial procurement volume for support services.

Group 87.3 within Section Q (Human health and social work activities) and Division 87 includes the following classes:

Contracting authorities in this segment are municipal elderly homes, district nursing homes, city nursing homes and facilities of public-service associations.

Public Tenders: Activity area NACE 87.3

Municipal nursing homes regularly procure catering, cleaning, laundry and medical supply services — a more substantial procurement area than is often assumed.

Typical types of contract

• Catering: Kitchen operations or catering services, special diets, dementia-appropriate nutrition concepts
• Cleaning and laundry: Maintenance cleaning, laundry service for bed linen and workwear
• Care articles and aids: Incontinence care, nursing aids, wheelchairs, nursing beds
• Pharmaceutical supply: Pharmaceutical supply by pharmacies (frequently as framework agreement)
• IT systems: Care documentation software, scheduling, resident management
• Facility management: Building services, gardens, security service
• Continuing education: Nursing-related continuing training for personnel

Market structure and operator landscape

The care market is shaped by three pillars: public operators (municipality, district), non-profit operators (Caritas, Diakonie, AWO, DRK) and private commercial providers. Only public operators are in principle subject to procurement obligations — non-profit operators are subject to procurement law only under specific conditions.

Relevant CPV codes for NACE 87.3

Who is NACE 87.3 relevant to under procurement law?

Public contracting authorities

Municipal nursing homes and district nursing homes must conduct their procurement in line with the procurement rules. Particular attention is paid to the award of nursing services: as social services within the meaning of Annex XIV of EU Directive 2014/24/EU, these are subject to a simplified procurement regime (threshold EUR 750,000, § 130 GWB).

Companies and bidders

For service providers in nursing-home care, the following are particularly relevant:

• Hygiene management: Evidence of a hygiene concept in line with the Infection Protection Act and KRINKO recommendations
• Food hygiene: HACCP certification for catering businesses
• Specialist personnel qualification: Evidence of the nursing and care staff deployed
• Data protection: Protection of health and social data under GDPR and SGB XI
• Quality evidence: MDK audit results or comparable quality assurance evidence

NACE 87.3 in context: Section Q and Division 87

• NACE Q – Human Health and Social Work Activities: Parent section
• NACE 87 – Residential care activities: Division
• NACE 87.1 – Residential nursing care activities: Nursing care
• NACE 87.2 – Psychosocial support: Psychiatry, addiction, disability
• NACE 88.1 – Outpatient care for the elderly: Outpatient care services

Frequently asked questions on NACE 87.3 and public tenders

Does a specific threshold apply to the award of nursing services? Yes. Nursing services are social services under Annex XIV of Directive 2014/24/EU. In Germany, § 130 GWB applies with an elevated threshold of EUR 750,000 and simplified procedural requirements (publication and transparency obligations remain in place).

Must home contracts with persons in need of care be tendered? No. Home contracts with persons in need of care are individual contracts under social law (SGB XI) and are not subject to procurement law. Procurement of goods and services by the facility as a contracting authority is, however, subject to a tender obligation.

Can nursing-home operators participate in tenders of other contracting authorities? Yes. Nursing-home operators can participate as bidders in tenders for social services if they act as service providers (e.g. for outpatient care, day care).

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