Procurement procedure – Call for tenders

A call for tenders is a contracting authority's declaration to a specific or undetermined number of undertakings stating which services are to be provided and under what terms.

The call for tenders is of central importance in a procurement procedure, which means that an intensive and in particular timely examination thereof is strongly recommended to both the contracting entities and the undertakings that would like to participate in a procurement procedure.

Content of a call for tenders

The contracting authoriy muss clarify the following criteria before creating a call for tenders and include them therein. This is an illustrative list, the type and scope of which is ultimately determined by the subject of the contract:

• whether the tendered service is being contracted out for the upper or lower threshold range
• the description of the service
• with which evidence undertakings have to prove their suitability
• whether the award is based on the best tender principle or the cheapest tender principle
  (If the award is based on the best tender principle, all relevant award criteria must be indicated in a weighted manner. The cheapest tender principle in turn requires that the quality standards are clearly and unambiguously defined in technical, economic and legal terms.) Merely using the lowest price as a basis is excluded in certain cases (e.g. for intellectual services).
• the pricing
• whether tenders containing incorrect calculations are eliminated or whether a ranking is permitted due to the correction of a calculation error
• whether tenders can also be submitted electronically (mandatory for tenders in the upper threshold range)
• whether alternative tenders are permitted (which is only permitted for contracts that are awarded according to the best tender principle) and which minimum requirements these tenders must meet
• if and under what conditions subcontractor services are admissible (for instance subcontracting of critical service activities to other traders can be excluded)
• under which category and description the contract falls
• contact person (with details of fax number and/or email address)
• it should be noted that the preparation of tenders for work to be carried out in Austria must take into account the labour and social law regulations applicable in Austria
• regulation on types and means of security (for example whether a deposit is required)
• regulations regarding disability-friendly construction, if a construction project is involved
• tender period
• time and location of the opening of tenders
• it is important to ensure that the tenders are comparable
• indication of the competent procurement control authority
• attention should also be paid to the special provisions concerning payment transactions

Award criteria

The call for tenders must also include award criteria. These are used to evaluate the tender. The award criteria for the lowest bid principle is only the price. With the best bid principle, at least one further criteria, such as quality, is added.

Correction of a call for tenders

The correction of a call for tenders or of the call for tenders documents as required from an undertaking’s perspective must be immediately communicated to the contracting entity. The contracting entity must correct the call for tenders if necessary.

The contracting authority may als revoke the call for tenders. Further information on the revocation of a call for tenders can also be found at USP.gv.at.