Feeds

Public procurement directive strengthens rights of rejected bidders

Ten day 'standstill period' allows challenges

Choosing a cloud hosting partner with confidence

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.

Secure remote control for conventional and virtual desktops

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.