NACE O – Public Administration and Defence; Compulsory Social Security | Public Tenders

Definition: NACE Section O covers the activities of public administrations and state security bodies, as well as compulsory social security. Companies in this section are themselves usually part of the public sector — at the same time, authorities are the most important contracting bodies for almost every other sector of the economy.

What does NACE O cover?

Division 84 is broken down into:

• 84.1 – General public administration (ministries, authorities, municipalities)
• 84.2 – Provision of services to the community as a whole (justice, defence, fire protection, public order)
• 84.3 – Compulsory social security (health, pension, accident insurance)

Public Tenders in Public Administration and Defence

Although NACE O itself describes state activities, this section is significant for procurement: authorities, the military and social-security bodies are the largest contracting authorities in public procurement. Defence procurement, IT for administrations and infrastructure for security authorities are particular tender segments.

Typical Contract Types

• Defence procurement: Vehicles, equipment and clothing for the armed forces (partly under VSVgV/BVKBG)
• IT for public administration: Specialist software, e-government systems, register modernisation
• Security infrastructure: Surveillance technology, communications equipment, protective systems for police and authorities
• Fire and disaster-response equipment: Fire-fighting vehicles, protective clothing, command and control systems
• Prison and correctional facilities: Construction and operation of correctional institutions, catering, security technology
• Administrative buildings: Construction, refurbishment and management of authority buildings and locations

Thresholds

For procurement in defence and security, EU Directive 2009/81/EC (defence and security procurement) applies, transposed in the Defence and Security Procurement Ordinance (VSVgV). General administrative procurement is subject to standard thresholds.

Common CPV Codes

Contracting Authorities

• Federal ministries (BMVg, BMI, BMJ): Central buyers for the armed forces, police and justice
• Federal Office for Equipment, IT and In-service Support of the Bundeswehr (BAAINBw): Defence procurement for the German armed forces
• Federal Office for Armed Forces Equipment of the Austrian Armed Forces: Military procurement in Austria
• Regional police authorities: Equipment and vehicle procurement for state police
• Statutory social-security institutions (ÖGK, DRV, BG): IT systems, administrative services

FAQ

What applies to procurement for the armed forces and defence? Defence procurement is subject to special Directive 2009/81/EC (VSVgV in Germany, BVergGVS in Austria). These provide for specific secrecy requirements and divergent procedural rules. Many defence contracts are awarded under negotiated procedure without prior call for competition where security interests so require.

What tenders are available for fire-brigade equipment? Fire-fighting vehicles, protective clothing and operational equipment are tendered by municipal fire brigades, fire-brigade associations and regions. Compliance with standards (EN, DIN) is a mandatory requirement. CPV codes: 34114210, 35811000, 44480000.

Are social-security bodies subject to procurement obligations? Yes, statutory social-security bodies (health insurance funds, pension institutions, accident insurance bodies) qualify as contracting authorities and are bound by procurement law. They tender IT systems, advisory services, building management and benefits in kind for insured persons.

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