In-Depth Tender Examination in Public Procurement Law

The in-depth tender examination is the detailed review where abnormally low prices are suspected under § 123 BVergG 2018, with a clarification meeting and price breakdown.

Definition: The in-depth tender examination is a detailed plausibility review of a tender provided for under Austrian public procurement law, where the contracting authority is obliged – on the basis of indications of abnormally low prices or costs – to call upon the bidder to provide a detailed explanation of its price calculation.

Last updated: January 2026 · Legal basis: § 123 BVergG 2018, Art. 69 Directive 2014/24/EU, § 60 VgV (DE)

What is the in-depth tender examination?

The in-depth tender examination is the Austrian procurement-law instrument for detecting and assessing tenders with abnormally low prices. It is the specifically Austrian term for the clarification mechanism for unusually low tenders that is set out in Art. 69 of Directive 2014/24/EU and in § 60 VgV (Germany).

The background: a tender with an unusually low price may either be an expression of high efficiency and innovation – or an indicator of dumping, calculation errors, unlawful state aid, or the bidder's intention to be unable to meet its contractual obligations later on. The in-depth tender examination is intended to distinguish between these cases.

Significance and function

The in-depth tender examination protects both the contracting authority from contract defaults and the competing bidders from anti-competitive dumping strategies.

Trigger

An in-depth tender examination must be initiated whenever a tender appears abnormally low in relation to the other tenders received or to the estimated contract value. § 123 para. 1 BVergG 2018 obliges the contracting authority to obtain clarification once it suspects such a case. There is no rigid percentage threshold; the assessment requires an overall view taking all circumstances into account.

Indicators of an abnormally low price may include:

A significant undercut of the next-best tender (e.g. by more than 20–25 %)
A substantial undercut of the contracting authority's cost estimate
Prices below the known market rates for labour, materials or subcontractor services

Procedure of the in-depth tender examination

The in-depth tender examination follows a structured procedure with clear documentation requirements.

Identifying the suspicion: The contracting authority finds that a tender appears abnormally low.
Request for clarification: Written request to the bidder to explain and break down its price (§ 123 para. 2 BVergG 2018).
Price breakdown: The bidder submits a detailed calculation (labour costs, material costs, overheads, profit, subcontractor prices).
Clarification meeting: Where necessary, the contracting authority holds a meeting with the bidder for further clarification.
Assessment: The contracting authority examines whether the explanations plausibly demonstrate the appropriateness of the price.
Decision: If the bidder cannot plausibly explain the low price, its tender must be excluded (§ 123 para. 4 BVergG 2018).

Possible explanations for a low price

The bidder can make its low price plausible by demonstrating:

A particularly economical method of production or unusually favourable conditions
Original solutions in performing the contract
Use of products for which state aid has lawfully been granted
Particular circumstances of the company (e.g. capacity optimisation, supply agreements)

Where state aid is relied on as the explanation, the bidder must demonstrate that it is compatible with EU state aid law.

Exclusion where the explanation is not plausible

If the bidder cannot sufficiently justify the appropriateness of its price, the contracting authority must exclude the tender – it has no discretion. This applies even if the tender is the lowest-priced. Awarding the contract to a tender with an implausibly low price would be unlawful.

Legal basis

The in-depth tender examination is regulated at both EU and national level.

EU: Art. 69 Directive 2014/24/EU (abnormally low tenders)
Austria: § 123 BVergG 2018 (in-depth tender examination); § 125 BVergG 2018 (grounds for exclusion)
Germany: § 60 VgV (clarification of abnormally low tenders); § 16d VOB/A (examination and evaluation)

Related terms

FAQ

At what price difference must an in-depth tender examination be initiated? The BVergG 2018 does not specify a fixed percentage. The duty to examine arises as soon as the contracting authority, acting in the exercise of its proper discretion, suspects an abnormally low price. In practice, an undercut of 20 % compared to the next-best tender or to the cost estimate is frequently used as a benchmark – but this figure is not binding.

What happens if the contracting authority omits a required in-depth tender examination and nevertheless awards the contract? Omitting the in-depth tender examination is a breach of procurement law. Competing bidders may challenge it in review proceedings. The award may be declared unlawful; in some circumstances the procurement procedure must be repeated or withdrawn.

Can the bidder subsequently raise its price in the clarification meeting? No. The in-depth tender examination serves to clarify the price already submitted, not to renegotiate it. A subsequent change of price would be inadmissible and would breach the principle that tenders must be evaluated unchanged.

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