Standstill Period

The standstill period is a mandatory waiting period between the communication of an award decision and the conclusion (signing) of the public contract. Its purpose is to allow unsuccessful tenderers to review the decision and, if warranted, to file a legal challenge before the contract becomes binding. Without this safeguard, aggrieved bidders would face the near-impossible task of unwinding an executed contract -- a situation the European Court of Justice famously sought to prevent.

How It Works

Once a contracting authority decides which tender to accept, it must notify all participating tenderers of the award decision before signing the contract. The notification must include sufficient information for each tenderer to understand why it was not selected: the name of the winning tenderer, the characteristics and relative advantages of the successful tender, and the reasons for rejection of each unsuccessful offer.

The standstill period begins running from the date this notification is sent. During this window, the contracting authority is legally prohibited from concluding the contract. If a tenderer files a challenge (known in many jurisdictions as an application for interim measures or a review application), the standstill period is effectively extended until the review body issues its decision.

The mechanism operates differently depending on the notification method. When the award decision is communicated electronically -- by email, fax, or through an e-procurement platform -- the minimum standstill period is 10 calendar days. When notification is sent by ordinary post or other non-electronic means, the period extends to 15 calendar days. Many Member States have transposed longer periods; for example, some jurisdictions apply 15 days even for electronic notifications.

The standstill obligation applies to all above-threshold procurement procedures under Directive 2014/24/EU and Directive 2014/25/EU (utilities). It also applies to concessions under Directive 2014/23/EU. Below-threshold contracts may be subject to national standstill rules depending on the Member State.

Certain procedures are exempt from the standstill requirement. These include contracts awarded under a framework agreement using direct call-off (without reopening competition), contracts awarded through a dynamic purchasing system, and specific urgency situations where the contracting authority can demonstrate that an immediate conclusion is justified.

If a contracting authority signs a contract in breach of the standstill obligation -- that is, before the period has expired or while a challenge is pending -- the contract may be declared ineffective (void) by a review body. This is one of the most severe sanctions available under EU procurement law.

Legal Framework

The standstill period was introduced by Directive 2007/66/EC, which amended the original Remedies Directives (89/665/EEC for classical procurement and 92/13/EEC for utilities). Article 2a of Directive 89/665/EEC, as amended, sets out the specific requirements.

The legal foundation traces back to the landmark judgment in Case C-81/98, Alcatel Austria AG v Bundesministerium fuer Wissenschaft und Verkehr (1999). The European Court of Justice ruled that the original Remedies Directive required Member States to ensure that the award decision could be reviewed and, if necessary, set aside before the contract was concluded. Before this ruling, many Member States allowed contract signature immediately after the award decision, rendering legal challenges practically meaningless. The Alcatel judgment effectively created a judicial standstill obligation that Directive 2007/66/EC later codified.

Article 2a establishes the minimum standstill periods (10 or 15 days depending on notification method) and specifies the information that must be communicated to tenderers. Article 2d addresses the consequences of breach: contracts concluded in violation of the standstill may be declared ineffective, with alternative penalties (fines, contract shortening) available where ineffectiveness is disproportionate.

In Germany, the standstill period is transposed through Section 134 of the Gesetz gegen Wettbewerbsbeschraenkungen (GWB). German law sets a 15-day standstill for postal notification and 10 days for electronic notification, matching the directive minimums. Challenges are filed with the Vergabekammern (procurement review chambers). In France, Articles L551-1 to L551-12 of the Code de justice administrative govern pre-contractual interim relief, and the standstill is implemented through the Code de la commande publique.

Under EU procurement law, the standstill period interacts with the broader remedies framework. Review bodies (courts, tribunals, or specialised procurement review bodies depending on the Member State) must be able to grant interim measures -- including suspension of the procurement procedure -- to preserve the effectiveness of their review.

Practical Examples

A national transport ministry awards a contract for fleet maintenance following an open procedure. It sends electronic notifications to all five tenderers on a Monday, providing detailed reasons for the award decision. The 10-calendar-day standstill period begins that Monday and expires at midnight the following Thursday of the next week. If no challenge is filed, the ministry may sign the contract on Friday.

In a construction procurement, a regional authority notifies tenderers by registered post on Day 1. The 15-calendar-day standstill begins running. On Day 8, an unsuccessful tenderer submits a request for review to the competent review body, arguing that the winning tender failed to meet minimum technical requirements. The standstill period is automatically suspended. The review body has jurisdiction to order the contracting authority to suspend the procedure pending its decision.

A contracting authority using a framework agreement receives complaints from a supplier about a direct call-off award. However, because call-offs under a framework agreement without reopening competition are exempt from the standstill obligation, the authority is not required to observe a waiting period before concluding the specific contract. The supplier's remedy, if any, lies in challenging the original framework agreement award or arguing that the call-off exceeded the framework's scope.

Key Considerations for Suppliers

The standstill period is a supplier's most important window for protecting its rights. Once the contract is signed, legal options narrow dramatically -- remedies shift from setting aside the award to seeking financial damages, which are far harder to prove and recover.

Suppliers should act immediately upon receiving an award notification. The first step is to analyse the reasons given for the award decision and the characteristics of the winning tender. If the notification lacks the required detail, the supplier should request additional information from the contracting authority without delay, as the standstill period runs regardless of whether the notification is adequate.

If a supplier identifies potential grounds for challenge -- such as a misapplication of award criteria, a failure to verify selection criteria, undisclosed conflicts of interest, or an abnormally low tender that was not properly investigated -- it should file a review application within the standstill period. In most jurisdictions, merely filing the application suspends the authority's ability to sign the contract.

Suppliers should be aware that review procedures carry costs and deadlines that vary by Member State. In Germany, filing with a Vergabekammer requires a fee that depends on the contract value, and the decision typically takes several weeks. In France, the juge des referes (interim relief judge) operates under extremely tight timescales, sometimes ruling within days.

For suppliers that regularly participate in EU procurement, establishing a rapid-response legal process -- including pre-identified procurement lawyers and template review applications -- can be the difference between an effective challenge and a missed deadline.

The standstill period is triggered by the award decision and typically coincides with or follows publication of the contract award notice. It relates to the VEAT notice, which creates a voluntary standstill for direct awards. Tenderers are the primary beneficiaries of the standstill, as it gives them time to challenge decisions. The exclusion grounds and selection criteria are common bases for standstill challenges. The broader remedies framework determines what relief is available.

Frequently Asked Questions

What happens if a contracting authority signs the contract before the standstill period expires?

A contract concluded in violation of the standstill period may be declared ineffective (void) by a competent review body under Article 2d of Directive 89/665/EEC. This is the most severe sanction in EU procurement law. Where a review body considers ineffectiveness disproportionate, it may impose alternative penalties such as fines or shortening of the contract duration.

Does the standstill period apply to below-threshold contracts?

The EU standstill obligation under Directive 2007/66/EC applies only to above-threshold contracts. However, many Member States have extended standstill requirements to below-threshold contracts through national legislation. In Germany, for example, the GWB standstill provisions apply to contracts above the EU thresholds, while below-threshold contracts are governed by Laender-level rules that may or may not include a standstill.

Can the standstill period be shortened in cases of urgency?

The EU directives do not provide for shortening the standstill period. However, certain contract types are exempt from the standstill entirely, including call-offs under framework agreements and contracts through dynamic purchasing systems. In cases of extreme urgency (Article 32(2)(c) of Directive 2014/24/EU), the contracting authority may use a negotiated procedure without prior publication, which by its nature does not involve a competitive standstill. A VEAT notice may be used voluntarily in such cases.