Lithuania - Definition and Guidelines for Reasoning of Abnormally Low Tenders
- Lithuania
- 12/28/2009
- Raidla Lejins & Norcous
On 10 November 2009, Director of the Public Procurement Office under the Government of the Republic of Lithuania adopted an order on guidelines for reasoning of abnormally low tenders for goods, services or works (the Guidelines Order). The Guidelines Order together with the order of 10 September 2009 on definition of an abnormally low tender (the Definition Order), not only specify the provisions regarding an ambiguous notion of abnormally low tenders established in the Law on Public Procurement of the Republic of Lithuania (the Law on Public Procurement), but also clarify in which situations the contracting authority has an obligation to request and the supplier has an obligation to provide the reasoning of an abnormally low tender.
Pursuant to the Definition Order, an abnormally low tender means that the price provided for in the tender might be insufficient for the proper performance of a public procurement agreement: (a) if the price is at least by 15 or more percent lower than the arithmetic average of prices of other tenders; or (b) if the price is at least by 30 or more percent lower than expenses originally scheduled for the public procurement at issue. The main purpose of the Guidelines Order is to help the contracting authority to identify whether an abnormally low tender as defined in the Definition Order may be objectively justified. These guidelines are applicable to international procurements as defined in the Law on Public Procurement and simplified procurements.
