NACE 87.9 – Other Residential Care Activities | Public Tenders

Definition: NACE 87.9 covers other residential care facilities that are not allocated to elderly care or psychosocial support. These include children's and youth homes, homelessness assistance facilities, women's shelters, and facilities for specific social groups.

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

What does NACE 87.9 cover?

NACE 87.9 (Other residential care activities) classifies a broad spectrum of social facilities — from youth welfare through homelessness assistance to women's shelters — operated in public or non-profit ownership.

Group 87.9 within Section Q (Human health and social work activities) and Division 87 includes the following classes:

Contracting authorities are municipal social welfare and youth welfare offices, districts and independent cities, state youth welfare offices and specialised associations for youth and social welfare.

Public Tenders: Activity area NACE 87.9

Municipal social facilities procure extensive operational and supply services — and public bodies increasingly tender the operation of entire facilities under service contracts and concessions.

Typical types of contract

• Catering: Catering and kitchen operations in children's and youth homes, emergency accommodation
• Cleaning and housekeeping: Maintenance cleaning in residential facilities and homeless shelters
• Operator services: Overall operation of communal accommodation for refugees (often as service concession)
• Security and order services: Personal protection and order services in emergency accommodation
• Social care: Social pedagogical specialists, where awarded as a service contract
• Equipment: Furniture, clothing, hygiene articles for residents of inpatient facilities

Refugee accommodation as a special case

The accommodation and care of refugees is frequently tendered as a complete package (accommodation + care + catering). Depending on the design, this is a service contract or a service concession. The volume of these tenders has increased significantly since 2015/2016.

Relevant CPV codes for NACE 87.9

Who is NACE 87.9 relevant to under procurement law?

Public contracting authorities

Municipalities and districts are the central contracting authorities in this segment. Recurring tenders are particularly common for the accommodation and care of refugees and homeless people. The award of social services follows the simplified regime under § 130 GWB (Germany) with the elevated threshold of EUR 750,000.

Companies and bidders

• Professional qualification: Social operator qualification, staffing with qualified social pedagogues
• Operating experience: Demonstrated operating experience with comparable facility types
• Official authorisations: Operating licences under SGB VIII (youth welfare), state-specific home acts
• Financial capacity: Evidence of sufficient economic capacity to operate the facility

NACE 87.9 in context: Section Q and Division 87

• NACE Q – Human Health and Social Work Activities: Parent section
• NACE 87 – Residential care activities: Division
• NACE 87.2 – Psychosocial support: Psychiatry, addiction, disability
• NACE 87.3 – Residential care for the elderly: Inpatient elderly care
• NACE 88.9 – Other care without accommodation: Outpatient social work

Frequently asked questions on NACE 87.9 and public tenders

Must the accommodation of refugees be tendered? Yes, provided the relevant thresholds are exceeded. In emergencies (e.g. sudden strong influx), time-limited direct awards may be permissible under the exemption conditions of procurement law (urgency).

Does the award of youth welfare services differ from general procurement law? Youth welfare services under SGB VIII are social services subject to the simplified regime under § 130 GWB. Approval procedures under SGB VIII are to be distinguished from procurement law — however, there is a trend towards tendering in this area as well.

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