Award

An award is the formal decision by a contracting authority to select a winning tender and grant a public contract to one or more economic operators. Governed by Articles 67-69 of Directive 2014/24/EU, the award decision marks the culmination of the evaluation process and triggers both a mandatory standstill period and the publication of a contract award notice.

How It Works

The award process is the critical final stage of a procurement procedure, where the contracting authority determines which tender best meets the published award criteria and formally selects the winning bidder.

The process typically unfolds as follows:

Tender opening and compliance check. After the submission deadline, the contracting authority opens all received tenders and verifies that each one meets the formal requirements (submitted on time, correct format, complete documentation, no exclusion grounds apply).
Evaluation against award criteria. Each compliant tender is scored against the published award criteria. Under the EU directives, the award must always be made to the most economically advantageous tender (MEAT), which can be assessed on the basis of price only, cost only (including life-cycle costing), or the best price-quality ratio. When using price-quality, each criterion has a published weighting, and evaluators score tenders accordingly.
Abnormally low tender verification. If a tender appears abnormally low compared to the estimated value or the other tenders received, Article 69 of Directive 2014/24/EU requires the contracting authority to request an explanation before it can reject the tender. The authority must give the tenderer an opportunity to justify the low price, which might be based on manufacturing efficiency, favorable conditions, or state aid.
Award decision. Based on the evaluation scores, the authority identifies the winning tender (or tenders, in the case of multi-lot procedures or framework agreements with multiple parties). The decision is documented in an evaluation report.
Standstill period. Before signing the contract, the authority must observe a standstill period of at least 10 calendar days (15 days if notification is by post) under the Remedies Directive (89/665/EEC, as amended by 2007/66/EC). During this period, unsuccessful tenderers are informed of the decision and its reasons, and may challenge it through administrative review or court proceedings.
Contract signature and publication. After the standstill period expires without challenge (or after any challenge is resolved), the contract is signed. The authority must then publish a contract award notice on TED within 30 days of contract conclusion, disclosing the winner's identity, the contract value, and the number of tenders received.

For procedures divided into lots, the award decision is typically made per lot. Each lot may have a different winner, and the authority publishes the results either in a single contract award notice covering all lots or in separate notices.

Legal Framework

The award phase is governed by several interconnected provisions of Directive 2014/24/EU:

Article 67 (Award criteria) establishes that contracts shall be awarded on the basis of the most economically advantageous tender (MEAT). Member States may restrict the use of price-only or cost-only as the sole award criterion, and some (like France and the Netherlands) have done so for certain categories of procurement.

Article 68 (Life-cycle costing) permits contracting authorities to use life-cycle costs — including acquisition, use, maintenance, and end-of-life costs — as part of the award evaluation. This promotes sustainable procurement by allowing buyers to consider total cost of ownership rather than just the purchase price.

Article 69 (Abnormally low tenders) protects both the contracting authority and legitimate tenderers by requiring investigation of suspiciously low offers. A tender cannot be rejected solely on the basis of being the cheapest; the authority must request justification and may only reject if the explanation is unsatisfactory.

The Remedies Directives (89/665/EEC for public sector, 92/13/EEC for utilities, both amended by 2007/66/EC) provide the legal framework for challenging award decisions. The mandatory standstill period ensures that unsuccessful tenderers have meaningful access to review before the contract becomes irreversible.

National courts and review bodies interpret these provisions with significant variations. In Germany, procurement review is handled by the Vergabekammern (procurement chambers), while in France, the administrative courts (tribunaux administratifs) have jurisdiction. These differences affect the practical risk and timeline of award challenges.

Practical Examples

Example 1: Best Price-Quality Award. A municipal government awards a waste collection contract using a 60% quality / 40% price weighting. Three tenders are received. Tenderer A scores highest on quality but has the second-highest price. Tenderer B has the lowest price but a lower quality score. Tenderer C scores moderately on both. After applying the weighted formula, Tenderer A achieves the highest combined score and receives the contract award. The contract value is EUR 1.2 million over three years.

Example 2: Multi-Lot Award. A defense ministry procures uniforms through a procedure with four lots (combat uniforms, dress uniforms, boots, and accessories). After evaluation, Lots 1 and 2 are awarded to a large textile manufacturer, Lot 3 to a specialized footwear company, and Lot 4 to a accessories supplier. Each lot's award is published in the same contract award notice.

Example 3: Abnormally Low Tender Investigation. In a road construction tender with an estimated value of EUR 8 million, one tenderer submits a bid of EUR 4.5 million — approximately 44% below the estimate. The contracting authority requests a detailed explanation. The tenderer demonstrates access to a nearby quarry (reducing material transport costs) and an idle workforce between projects. Satisfied with the explanation, the authority awards the contract. If the explanation had been inadequate, the authority could have rejected the tender.

Key Considerations for Suppliers

Understand the award criteria before bidding. The award criteria and their weightings are published in the contract notice and procurement documents. Build your tender around maximizing your score on the highest-weighted criteria. If quality counts for 70%, investing in a compelling technical proposal is more valuable than cutting your price to the bone.

Prepare for the standstill period. After an award decision, you will receive notification of whether you won or lost. If you lose, the standstill period is your window to request debriefing and, if warranted, to challenge the decision. Request a debrief promptly — it provides valuable intelligence on your score relative to the winner and where your tender was strong or weak.

Know your rights regarding abnormally low tenders. If you suspect a competitor has submitted an unrealistically low price that could compromise contract delivery, be aware that the contracting authority is legally obligated to investigate. While you cannot directly challenge another tenderer's price, you can raise concerns with the authority, and in some jurisdictions, you may have standing to challenge the award if proper verification procedures were not followed.

Track award outcomes for competitive intelligence. Published contract award notices reveal who won, at what price, and how many competitors participated. Systematically tracking this data across your target market segments allows you to benchmark your pricing, identify your most frequent competitors, and calibrate your win strategy.

Factor in contract value flexibility. The final contract value disclosed in the award notice may differ from the estimated value published in the contract notice. Understand that estimated values are forecasts, not commitments. Framework agreement awards in particular may show significantly different values as actual call-off volumes fluctuate.

Contract Award Notice — The mandatory notice that publicly announces the award decision, disclosing the winner and contract value.
Award Criteria — The criteria against which tenders are evaluated to determine the winning offer.
Economic Operator — The supplier, contractor, or service provider who receives the award.
Lot — When a procedure is divided into lots, each lot may have its own separate award.
Tender — The offer submitted by an economic operator and evaluated during the award process.
Exclusion Grounds — Grounds that may disqualify a tenderer before the award evaluation.

Frequently Asked Questions

What is the standstill period and why does it exist?

The standstill period is a mandatory waiting period of at least 10 calendar days between the notification of the award decision and the signing of the contract. It exists to give unsuccessful tenderers a meaningful opportunity to review the decision and potentially challenge it before the contract becomes legally binding. Without the standstill period, review remedies would be rendered ineffective because the contract would already be concluded.

Can an award decision be challenged?

Yes. Unsuccessful tenderers can challenge an award decision through national review procedures established under the Remedies Directives. The specific mechanisms vary by country — in some Member States, review is handled by specialized procurement tribunals, while in others the ordinary courts have jurisdiction. Grounds for challenge typically include errors in evaluation, failure to follow published criteria, discrimination, or procedural irregularities.

What happens if no suitable tenders are received?

If no tenders are received, or if all tenders are non-compliant or exceed the budget, the contracting authority may declare the procedure unsuccessful. Depending on the circumstances, it may then launch a new procedure, potentially using a negotiated procedure without prior publication (Article 32) if specific conditions are met, such as when an open or restricted procedure was previously conducted and no suitable tenders were submitted. For more on reading and interpreting these notices, see our guide on how to read a contract notice.

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