Best Bidder Principle in Public Procurement Law
Best bidder principle: award to the most economically advantageous tender based on quality & price. Section 91 BVergG 2018. Opposite of the lowest-price principle.
Definition: The best bidder principle is the procurement-law principle according to which the contract is awarded not exclusively to the lowest bidder, but to the tender that, in an overall evaluation of all defined award criteria – in particular price and quality – produces the most economically advantageous outcome for the contracting authority.
Last updated: January 2026 · Legal basis: Section 91 BVergG 2018, Article 67 Directive 2014/24/EU
What is the best bidder principle?
The best bidder principle is the prevailing award principle in Austrian and EU public procurement law: the contract goes to the most economically advantageous tender, determined through an overall assessment of price and qualitative criteria.
The best bidder principle stands in contrast to the lowest-price principle, where the lowest price alone is decisive. Under the best bidder principle, the contracting authority may take into account, in addition to price, criteria such as quality, technical value, aesthetics, suitability, accessibility, social and environmental characteristics, delivery conditions or after-sales service. This permits a more nuanced evaluation that reflects the contracting authority's actual needs.
In EU terminology, the best bidder principle is referred to as the MEAT principle (Most Economically Advantageous Tender).
Significance and function
The best bidder principle is intended to ensure that contracting authorities are not pushed into a pure pricing spiral but can align procurement with the actual overall economic value of a service.
The best bidder principle is implemented in practice via a points system or utility-value analysis. The contracting authority assigns weightings to the various award criteria in advance (e.g. price 60%, quality 30%, delivery time 10%). The tenders received are evaluated and compared on the basis of these weighted criteria. The tender with the highest overall score receives the award.
Important: The award criteria must be linked to the subject matter of the contract. A contracting authority may not invoke criteria that bear no objective connection to the service to be procured.
Legal basis
In Austria, the best bidder principle is enshrined in Section 91 BVergG 2018; at EU level, Article 67 of the Procurement Directive 2014/24/EU governs the corresponding MEAT principle as the standard award criterion above the EU thresholds.
Section 91(1) BVergG 2018 stipulates that the contract – unless the lowest-price principle is expressly applied – is to be awarded to the technically and economically most advantageous tender. The contracting authority must announce the award criteria and their weighting in the tender notice.
At EU level, Article 67(2) of Directive 2014/24/EU prescribes that the most economically advantageous tender from the contracting authority's perspective is determined on the basis of price or cost and may include quality-price ratios. Pure price-based awards remain possible above the EU thresholds under EU law, but are no longer the rule.
Distinction from the lowest-price principle
The best bidder principle is to be distinguished from the lowest-price principle as follows:
| Feature | Best bidder principle | Lowest-price principle |
|---|---|---|
| Award criterion | Most economically advantageous tender (price + quality) | Lowest price only |
| Scope of application | Standard case; complex or quality-sensitive services | Only for services that can be clearly standardised |
| Evaluation method | Points system / utility-value analysis | Pure price ranking |
| Legal basis (AT) | Section 91 BVergG 2018 | Section 91 BVergG 2018 |
Related terms
- Lowest-price principle
- Award criteria
- Award decision
- Tender examination
- Invitation to tender
- Prohibition of double evaluation
- Abnormally low tender
- Variant bid
- Bill of quantities
- Procurement procedure
FAQ
When must the best bidder principle be applied? In Austria, the best bidder principle is the default. The lowest-price principle is only admissible if the service to be procured can be described clearly and exhaustively and no differences in quality between tenders are to be expected. For complex services, planning services or services with strong quality dimensions, the best bidder principle must always be applied.
Which criteria may the contracting authority consider under the best bidder principle? All criteria that are linked to the subject matter of the contract are admissible: price, quality, technical value, aesthetics, suitability, accessibility, social characteristics, environmental characteristics, delivery conditions, after-sales service and technical assistance. Criteria without any objective connection to the service, as well as criteria already used as suitability requirements (prohibition of double evaluation), are inadmissible.
What is the difference between MEAT and the best bidder principle? The concepts are substantively identical: MEAT (Most Economically Advantageous Tender) is the EU-law term used in Article 67 of Directive 2014/24/EU, while "best bidder principle" is the term commonly used in Austria. Both refer to the identification of the most economically advantageous tender on the basis of multiple criteria.
Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.
Book a demo.
See what BOND finds for your company — tenders, suppliers, and partners you'd never discover on your own. Cancel any month, anytime.