Best Offer Principle in Public Procurement Law 2026

Definition: The best offer principle is the procurement-law principle according to which the contract does not have to be awarded to the lowest-priced tender, but to the tender that offers the best price-performance ratio – i.e. the most economically advantageous tender, taking several award criteria into account.

Last updated: January 2026 · Legal basis: Article 67 Directive 2014/24/EU, Section 127 GWB, Section 91 BVergG 2018

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What is the best offer principle?

The best offer principle – also referred to as the "best bidder principle" (Austrian terminology) – ensures that contracting authorities do not look exclusively at the lowest price, but include quality, sustainability and other criteria in the award decision.

In Austrian terminology, a distinction is frequently drawn between the best bidder procedure and the lowest bidder procedure: in the best bidder procedure (Section 91 BVergG 2018), the most economically advantageous tender is determined taking several criteria into account. In the lowest bidder procedure, the tender with the lowest price receives the award. The best offer principle corresponds to the European concept of the "most economically advantageous tender" (MEAT).

Legal basis and European framework

Article 67 of Directive 2014/24/EU enshrines the principle of the most economically advantageous tender as an EU-wide standard.

EU procurement law requires contracting authorities to award the contract on the basis of the most economically advantageous tender. This is determined on the basis of the best price-performance ratio, whereby price or costs as well as qualitative, environmental and/or social aspects can be taken into account. Pure lowest-price awards remain admissible if price is the only award criterion – but the trend across Europe is towards multi-criteria decisions.

Award criteria under the best offer principle

Under the best offer principle, the contracting authority sets multiple weighted award criteria against which tenders are evaluated.

Typical criteria in addition to price:

• Quality: Technical performance, degree of innovation, aesthetics
• Delivery deadlines and execution times
• Life-cycle costs: Not only the acquisition price, but also operation, maintenance and disposal
• Environmental characteristics: Carbon footprint, energy efficiency, recyclability
• Social aspects: Working conditions, employment of long-term unemployed persons
• Customer service and technical support
• Organisation and qualification of the personnel deployed

All criteria and their weighting must be announced in advance in the contract notice or the tender documents.

Distinction from the lowest-price principle

The lowest-price principle and the best offer principle lead to different procurement outcomes.

Feature	Lowest-price principle	Best offer principle
Award criterion	Price only	Price and quality
Steering effect	Price pressure	Quality incentive
Suitable for	Standard products	Complex services
Legal basis	Article 67(2) sentence 1 Dir 2014/24/EU	Article 67(2) Dir 2014/24/EU

FAQ

Must the contracting authority always apply the best offer principle? No. Procurement law also permits a pure price decision if price is the only award criterion. In Austria, the best bidder procedure is increasingly mandatory for more complex services.

How are the various criteria weighted under the best offer principle? The contracting authority determines the weighting in advance. Percentage weightings are common (e.g. 60% price, 40% quality). The weighting must be stated in the contract notice or the tender documents.

Can a more expensive tender receive the award under the best offer principle? Yes. If the tender of higher quality achieves more points in the overall evaluation than the cheaper one, it receives the award – provided that the quality criteria are sufficiently weighted.

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Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.