Feeds

Public procurement directive strengthens rights of rejected bidders

Ten day 'standstill period' allows challenges

5 things you didn’t know about cloud backup

A directive has been passed that aims to encourage more businesses to bid for public contracts anywhere in the EU by giving them stronger rights of challenge where they consider that a public authority has awarded a contract unfairly.

The new law was proposed by the European Commission and adopted by the Council of Ministers and European Parliament on Thursday. It provides that public authorities will need to wait for at least 10 days after deciding who has won a contract before the contract can actually be signed. This "standstill period" is designed to give unsuccessful bidders time to challenge the decision.

If this standstill period has not been respected, the directive requires national courts to set aside a signed contract, by rendering the contract ineffective. National courts will also be able to render public contracts ineffective if they have been illegally awarded without transparency and prior competitive tendering.

Public procurement accounts for some 16 per cent of EU GDP, according to the commission.

Internal Market and Services Commissioner Charlie McCreevy said: "I am pleased that this directive has been adopted so rapidly. We need effective procedures for seeking review in all EU member states in order to make sure that public contracts ultimately go to the company which has made the best offer. By strengthening national review procedures in line with this Directive, businesses will have stronger incentives to bid for public contracts anywhere in the EU."

The directive will soon be published in the EU's Official Journal. EU Member States will then have 24 months to implement it in their national laws.

See: Commission info about the directive

Copyright © 2007, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Build a business case: developing custom apps

More from The Register

next story
The police are WRONG: Watching YouTube videos is NOT illegal
And our man Corfield is pretty bloody cross about it
China hopes home-grown OS will oust Microsoft
Doesn't much like Apple or Google, either
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Don't even THINK about copyright violation, says Indian state
Pre-emptive arrest for pirates in Karnataka
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?