What does standstill period mean?
The standstill period, also called the information and waiting period, is a statutory period above the EU thresholds during which the contracting authority may not award the contract after announcing the award decision. It protects bidders' rights by giving unsuccessful bidders time to examine the award decision and, if necessary, start a review procedure before the contract is validly concluded.
The standstill period is at least ten calendar days if the advance notice of the award decision is sent by fax or electronically, and at least 15 calendar days if it is sent by other means. The period starts on the day after the information is sent to the bidders. During this period, the contracting authority may not award the contract. A violation of the standstill period can make the concluded contract void.
The advance notice that triggers the standstill period must contain certain minimum content. The contracting authority must inform each unsuccessful bidder of the name of the company that is to receive the contract and of the reasons why its own bid was rejected. The contract may only be awarded after the standstill period has ended and only if no application for review has been received.
Relevance for bidders
The standstill period is of outstanding importance for bidders, because it defines the time window for starting a review procedure. If a bidder receives a rejection, it must decide within this period whether to accept or challenge the award decision. A quick analysis of the reasons for rejection and prompt legal advice are therefore essential.
After receiving the advance notice, bidders should check without delay whether the stated reasons for rejection are understandable and lawful. If there are doubts, the procurement violation must first be raised as a complaint (Rüge) with the contracting authority. If the complaint is unsuccessful, an application for review can be filed with the public procurement tribunal (Vergabekammer) within the standstill period. If the bidder misses the standstill period, it generally loses its right to a review.
Legal framework
The standstill period is governed by Section 134 GWB (German Act against Restraints of Competition). The duty to give advance notice also follows from Section 134 GWB. The legal consequence of violating the standstill period, namely that the contract is void, is set out in Section 135(1) No. 1 GWB. At EU level, the standstill period goes back to Remedies Directive 2007/66/EC. Below the thresholds, there is no statutory standstill obligation, although some procurement rules provide for information obligations.