Adequacy of the Bid in Public Procurement Law 2026

Definition: Adequacy of the bid refers to the procurement-law examination of whether a tender contains a realistically calculated price that ensures proper performance of the contract, in particular in the case of abnormally low tenders.

Last updated: January 2026 · Legal status: Art. 69 Directive 2014/24/EU, § 60 VgV, § 16d VOB/A, § 125 BVergG 2018

---

What does adequacy of the bid mean?

The adequacy check protects the public contracting authority from tenders with prices so low that proper performance of the contract appears at risk. Abnormally low tenders – so-called dumping bids – are a widespread problem in public procurement: bidders sometimes substantially undercut the market price to win the contract and then try to restore profitability through claim management or quality reductions. Procurement law addresses this risk by means of a mandatory clarification obligation.

When is a tender abnormally low?

There is no fixed threshold for "abnormally low"; the contracting authority must conduct an evaluative overall assessment. Practical reference values include:

• Tenders that are more than 20 % below the average price of the other tenders
• Tenders significantly below the contracting authority's cost estimate
• Tenders in which individual items are obviously under-calculated

None of these values is legally binding. The case law requires an individual assessment taking account of all circumstances.

Clarification Procedure

If a tender appears abnormally low, the contracting authority is obliged to invite the bidder to provide written clarification before any exclusion. The bidder has the opportunity to explain the price, for example by:

• Evidence of favourable procurement conditions
• Technical efficiency advantages or innovative solutions
• Explanation of the basis of calculation
• Evidence of State aid (with its own examination regime)

Only if the contracting authority continues to have justified doubts about adequacy after clarification may the tender be excluded.

Legal Consequences

If the bidder is unable to demonstrate the adequacy of its price sufficiently, the contracting authority is entitled – and in certain circumstances obliged – to exclude the tender. This applies in particular if the price has been made possible by unlawful State aid (Art. 69(4) Directive 2014/24/EU).

FAQ

Must the contracting authority always ask before excluding a tender for low pricing? Yes. Exclusion without prior opportunity for clarification is unlawful under procurement law and renders the award decision open to challenge.

Can a bidder challenge the exclusion of its tender for lack of adequacy? Yes, by way of a review procedure before the public procurement tribunal. The contracting authority must provide complete documentation of the adequacy check.

What is the difference between adequacy and seriousness of the price? The terms are often used synonymously. "Seriousness" emphasises the bidder's genuine intention to perform the service at the offered price; "adequacy" focuses on the arithmetic plausibility of the calculation.

---

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