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Revision of the Public Procurement Remedies DirectivesOverviewBusinesses and lawyers may encounter legal and practical problems when using national review procedures to challenge decisions made by public authorities awarding contracts. The aim of the revision of the Public Procurement Remedies Directives (Directives 89/665/EEC and 92/13/EEC) is to make progresses in some areas. Providing clear and effective procedures for seeking redress in cases where bidders consider contracts have been unfairly awarded is crucial to making sure contracts ultimately go to the company which has made the best offer, and therefore to building confidence among businesses and the public that public procurement procedures are fair. EU law on public procurement aims to increase competition and transparency in order to create opportunities for all EU businesses, better value and higher quality services for the taxpayer. On the basis of public consultations and an impact assessment (see below), the Commission has put forward a proposal for a Directive, amending Council Directives 89/665/EEC and 92/13/EEC, which aims to improve the effectiveness of national review procedures for the award of public contracts. The proposed Directive was submitted for adoption under the 'co-decision' procedure to the European Union's Council of Ministers (subject to qualified majority voting) and the European Parliament. An agreement at first reading was reached. The Directive has been formally adopted and has been published as Directive 2007/66/EC on 20 December 2007. Member States have until 20 December 2009 to implement the new Directive into national law. New DirectiveThe new Directive 2007/66/EC requires public authorities to wait a certain number of days, known as a 'standstill period', before concluding a public contract. This gives rejected bidders the opportunity to start an effective review procedure at a time when unfair decisions can still be corrected. If this standstill period has not been respected, the Directive requires national courts under certain conditions to set aside a signed contract, by rendering the contract "ineffective". The Directive also seeks to combat illegal direct awards of public contracts, which is the most serious infringement of EU procurement law. National courts will also be able to render these contracts ineffective if they have been illegally awarded without any transparency and prior competitive tendering. In these cases the contract will need to be tendered again, this time according to the appropriate rules. The introduction of these new rights for rejected bidders will create stronger incentives for EU businesses to bid for contracts anywhere in the EU.
Proposal for a new DirectiveThe Commission has proposed a Directive amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts (4.5.2006)
Public ConsultationsWith companies, lawyers, professional associations and non-governmental organisationsThe European Commission has launched an eight-week Internet consultation on the legal and practical problems businesses and lawyers may encounter when using national review procedures to challenge decisions made by public authorities awarding contracts. The consultation uses three separate on-line questionnaires aimed at different target groups.
With contracting authoritiesConsultation with the contracting authorities prior to revision of the "remedies" Directives in the field of public procurement - Closed (14.4.2004) European Business Test Panel Questionnaire
Background documents
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