8. Remedies and Enforcement
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8. Remedies and Enforcement Start Comparison
a. Are there any remedies and enforcement mechanisms in the procurement legislation?

Yes. Under the Model Law, a supplier or contractor has the basic right to challenge an act or a decision of the procuring entity in the procurement proceedings. The article provides that any supplier or contractor participating in the procurement proceedings has the right to participate in the challenge proceedings under Article 66 (which deals with application for reconsideration before the procuring entity) and Article 67 (which deals with application for review before an independent body). The right to challenge includes:

  • The right to be present, represented and accompanied at all hearings during the proceedings;
  • The right to be heard;
  • The right to present evidence, including witnesses;
  • The right to request that any hearing take place in public; and
  • The right to seek access to the record of the challenge proceedings subject to the provisions of Article 69.

When a challenge application is filed, the procuring entity cannot award the contract unless an independent body or the court grants an exemption from the prohibition of Article 65 due to an urgent public interest. If not exempted, the procuring entity must publish a notice of the challenge application on an appropriate forum to ensure that all interested participants are informed. Within three days of the receipt of the challenge application, the procuring entity must perform several steps. First, the procuring entity must notify all parties in the procurement proceedings regarding the application and its substance. Subsequently, the procuring entity must determine whether it will dismiss or entertain the application. If it decides to dismiss the application, the procuring entity must notify the applicant about the dismissal within three days. If the procuring entity decides to engage with the application, the entity must determine whether it will suspend the procurement proceedings (which will halt all actions) and decide the duration of the suspension. Paragraph 8 provides that procuring entity must provide the independent reviewing body the access to all documents relating to the procurement proceedings in its possession.

b. Are remedies available outside the scope of procurement legislation, e.g. civil law damage claims?

The Model Law does not address this.

c. Is there a specific forum before which procurement disputes are heard?

The Model Law does not specify a forum before which procurement disputes are heard. Rather, the challenge proceeding articles require the enacting state to designate the appropriate independent body or court to serve as the forum.

d. Are there any timing requirements for the review?

Under Article 66, a supplier or contractor has the right to apply to the procuring entity for a reconsideration of a decision or action taken by the entity within the following time periods:

  • An application for reconsideration of the terms of solicitation must be submitted prior to the deadline for presenting submissions; or
  • Application for reconsideration of other decisions or actions of the procuring entity must be submitted within the standstill period pursuant to Paragraph 2 of Article 22 or in cases where no standstill period has been applied, the application must be submitted prior to the entry into force of the procurement contract or the framework agreement.

A supplier or contractor may also apply to an independent body or court for a review of a decision or action taken by the procuring entity in the procuring proceedings within time periods specified in Article 67:

  • Applications for review of the terms of solicitation, prequalification or pre-selection or of decisions or actions taken by the procuring entity in prequalification or pre-selection proceedings shall be submitted prior to the deadline for presenting submissions;
  • Applications for review of other decisions or actions taken by the procuring entity in the procurement proceedings shall be submitted:
    • Within the standstill period applied pursuant to Paragraph 2 of Articles 22; or
    • Where no stand still period has been applied, within working days specified by the enacting state after which the applicant became aware of the circumstances giving rise to the application or when the applicant should have become aware of those circumstances.
e. What are the main preconditions for review?

A bidder has standing to file a petition for review if it can claim that (1) it is a supplier or contractor and (2) its challenges relate to the procuring entity's decisions or actions in a given procurement procedure.

f. What are admissible grounds for starting a review proceeding?

According to Article 64, a supplier or contractor may bring a challenge if it claims it has suffered or may suffer loss or injury because of the alleged non-compliance of a decision or action of the procuring entity.

g. Does a review proceeding affect an ongoing procurement procedure or an awarded contract respectively?

Article 65 ensures that procurement contract cannot be awarded while a challenge is pending. When the procuring entity receives an application for reconsideration or notification of a challenge or appeal, the entity is prohibited from proceeding with the procurement process for a time prescribed by the enacting state.

h. What are the consequences of a successful review proceeding for the affected procurement procedure or awarded contract respectively?

Please see Section 8(a).

i. How long does a judicial proceeding for review take?

The Model Law defers to the enacting state to determine the length of the judicial review.

j. Must unsuccessful bidders be notified before the award? If so, when?

According to Article 22, unsuccessful bidders must be notified "promptly" upon procuring entity's decision to accept the successful submission at the end of the standstill period. Standstill period refers to "the period starting from the dispatch of a notice as required by paragraph (2) of Article 22 of this Model Law, during which the procuring entity cannot accept the successful submission and during which suppliers or contractors can challenge, under Chapter VIII of this Model Law, the decision so notified." Article 2. The Model Law does not define "promptly" but it generally means as soon as reasonably possible after the procuring entity has made its decision.

k. Are review proceedings common?

Because the Model Law was published in 2011, we have yet to see a major development to determine whether review proceedings are common.

l. Are damage claims in relation with procurement procedures common?

Because the Model Law was published in 2011, we have yet to see a major development to determine whether damage claims in relation with procurement procedures are common.

m. What are the leading court decisions involving procurement disputes?

The Model Law does not address this.