What is the standstill period?

The standstill period is a crucial stage within the procurement process. It is a legal period created to ensure transparency and fair competition in the world of procurement. This period takes place after the tender is awarded, but before the contract is actually signed. It gives rejected bidders the opportunity to object if they believe that the tender was not conducted correctly.

For companies participating in tenders, understanding the standstill period is essential. It allows them to protect their rights and, if necessary, object. In this article, we will go into depth about what the standstill period means, why it is important, and how to prepare for this phase as a company.

What is the standstill period?

The standstill period is a period of at least 10 calendar days starting after the contracting authority announces the preliminary award of a tender. During this time, no party has the right to sign a contract, giving rejected bidders the opportunity to object. This period ensures the transparency of the procurement process and prevents the process from being unfair.

Legal basis of the standstill period

The obligation to apply a standstill period is stipulated in European and national procurement laws. The aim is to provide a level playing field for all bidders by giving them the opportunity to verify the contracting authority's decisions and raise any errors. Without this deadline, there would be a risk that irregularities in the award process would go undetected.

It is important to note that the duration of the standstill period may vary by type of procurement, but the minimum period is usually 10 days. In some cases, this period may be extended depending on the complexity of the procurement and the legal requirements of the countries involved.

The purpose of the standstill period

The primary purpose of the standstill period is to make the procurement process transparent and fair. It gives unsuccessful bidders the opportunity to assess whether the tender was conducted correctly and whether the award criteria were properly applied. This is especially important in large and complex projects, where the stakes are high for companies.

Protection of bidders

One of the main functions of the standstill period is to protect the rights of bidders. Suppose a company is convinced that the award process has not been conducted fairly, for example because the award criteria have not been applied correctly, the standstill period provides an opportunity to object. This objection can lead to a re-evaluation of the tenders or, in some cases, the cancellation of the award.

Preventing legal complications

In addition to protecting bidders, the standstill deadline prevents long-term legal complications. If a contract is signed without complying with the standstill deadline, it can lead to legal action and delays in project implementation. Adhering to the standstill deadline ensures that any problems are resolved early, without unnecessarily delaying the process.

How does the standstill period work in practice?

The standstill period starts when the contracting authority announces the preliminary award. This notification indicates which party will be awarded the project and why this party was preferred. Unsuccessful bidders usually also receive an evaluation of their own bid, explaining why their bid was not selected.

Characteristics of a standstill notification

A standstill notification should always contain the following information:

• The name of the winning party
• The reasons why the winning party was selected
• The assessment scores of the rejected parties
• The start date and duration of the standstill period
• Instructions on how and where to file objections

This gives rejected bidders enough information to assess whether they agree with the award or want to object. It is important for companies to act quickly at this stage because the standstill period is usually short.

Objecting during the standstill period

If an unsuccessful bidder believes that mistakes were made in the award process, they can object during the standstill period. This objection is usually filed with the contracting authority, but in some cases it can also go through the courts. The objection can lead to a revision of the award or a complete restart of the procurement process.

Consequences of an objection

If an objection is upheld, it could have major implications for the procurement process. The award may be reversed and the evaluation process may have to be redone. In extreme cases, the tender may be cancelled entirely, and the tender process must be restarted. This shows how important it is for companies to be careful with the information they receive during the standstill period.

Tips for businesses during the standstill period

The standstill period offers companies not only protection but also an opportunity to gain valuable insights into their performance during the procurement process. Here are some tips for companies looking to make the most of this period.

Analyze the evaluation carefully

One of the most valuable documents you will receive during the standstill period is the evaluation of your bid. This document provides insight into how your company performed against the award criteria and where you may have failed. By thoroughly analyzing this evaluation, you can learn from your mistakes and improve your bidding process for future tenders.

Make strategic objection

Not every objection is justified, and filing an unsubstantiated objection can be damaging to your company's reputation. Be sure to object only when you have strong evidence of errors or illegalities in the award process. Consider a strategy session with your team to decide whether objecting is the right choice.

Build relationships with contracting authorities

The standstill period is also an opportunity to communicate with the contracting authority and gain insight into their decision-making process. By asking constructive questions and building rapport, you increase your chances of success in future tenders. This is especially important when dealing with long-term procurement strategies.

What happens after the standstill period

If no objections are filed during the standstill period, the contracting authority can proceed to sign the contract with the winning party. This marks the end of the tender process and the beginning of the contractual obligations.

Contract signing

After the standstill period, the contracting authority and the winning party can begin contract negotiations and signing. This is the time when project implementation officially begins. For the rejected parties, it is time to prepare for future tenders and learn from the feedback they have received.

Looking ahead to future tenders

Even if your company did not win the tender, the standstill period offers valuable lessons for future tenders. Make sure you incorporate the feedback you received into your next tenders. This will increase your chances of success in the future.

Conclusion The importance of the standstill period

The standstill period plays an important role in ensuring transparency and fairness in the procurement process. For companies, it provides not only protection but also an opportunity to learn and better prepare for future tenders. By strategically using the standstill period, companies can increase their chances of success and strengthen their position in the procurement market.

Companies that manage the tender process well, including the standstill period, have a clear advantage in winning tenders and building lasting relationships with contracting authorities.