duty to state reasons

The duty to state reasons is a fundamental principle in public procurement that requires contracting authorities to explain and justify their decisions — particularly when awarding a contract or rejecting a bid. The obligation ensures transparency and gives tenderers a meaningful basis for assessing whether the process was conducted lawfully.

How does the duty to state reasons work?

Under Article 55 of EU Directive 2014/24/EU, contracting authorities must inform all tenderers of their award decision as soon as possible, along with the reasons for it. The explanation is provided through the award decision notice, which also triggers the standstill period — the mandatory pause before the contract can be signed.

The Court of Justice of the European Union (CJEU) has established that simply providing numerical scores is not sufficient. The statement of reasons must enable tenderers to understand why the winning bid was selected and to determine whether there are grounds for a legal challenge.

What must the reasoning include?

A valid statement of reasons should be:

• Specific: It must reference the actual award criteria and explain which factors were decisive — vague or generic statements do not meet the requirement
• Substantive: Mere scores or rankings are not enough. The authority must explain the characteristics and relative advantages of the winning tender
• Timely: The reasoning must be provided at the time of the award decision, not only upon request or after a complaint

The duty also extends beyond award decisions. For example, contracting authorities must state reasons when excluding a tenderer or when relying on exceptions to standard procurement rules. Tools like Cobrief help suppliers monitor award decisions and evaluate whether the stated reasoning meets legal requirements.

The duty to state reasons is a cornerstone of procurement law across the EU and EEA. It forces contracting authorities to make well-considered decisions and gives every participant a fair opportunity to hold the process accountable.