Feeds

Public procurement directive strengthens rights of rejected bidders

Ten day 'standstill period' allows challenges

Application security programs and practises

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.

Designing a Defense for Mobile Applications

More from The Register

next story
Sit back down, Julian Assange™, you're not going anywhere just yet
Swedish court refuses to withdraw arrest warrant
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Delaware pair nabbed for getting saucy atop Mexican eatery
Burrito meets soft taco in alleged rooftop romp outrage
British cops cuff 660 suspected paedophiles
Arrests people allegedly accessing child abuse images online
LightSquared backer sues FCC over spectrum shindy
Why, we might as well have been buying AIR
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.