lot

A lot is a separate part of a larger public procurement that has been divided into smaller, independent contracts. The division may be based on geography, discipline, product category, or volume. The purpose is to encourage competition and make it easier for small and medium-sized enterprises (SMEs) to participate in tender procedures.

How do lots work?

When a contracting authority plans a large procurement, it considers whether the contract should be split into lots. A municipality needing bus services across several regions might, for example, publish one lot per region rather than a single large contract. A hospital building project could be divided into separate contracts for electrical, plumbing, and carpentry work.

Under EU Directive 2014/24/EU (Article 46), contracting authorities must consider dividing contracts into lots for procurements above the EU threshold values. If the contract is not divided, the reasons must be stated in the tender documents. This is known as the "divide or explain" principle.

Key rules

• Value calculation: The combined value of all lots determines whether the procurement exceeds the threshold
• Limiting lots per supplier: The contracting authority may cap how many lots a single supplier can win, even if the supplier submits a bid for all of them
• Combined award: It is possible to award a combined contract to one supplier if this was stated in the contract notice and the overall result is best
• Qualification requirements: Selection criteria must be set and assessed separately for each lot

Tools like Cobrief give suppliers a better overview of published lots, helping them quickly identify opportunities that match their capacity and expertise.

Lots are an important mechanism for opening up public procurement to a wider range of participants. By tailoring contract size and content to the market, contracting authorities can achieve better competition, lower prices, and a healthier supplier landscape in the long term.