Federal Public Procurement Tribunal: Planned award of contract for the construction of five more corvettes to previous contractor violates public procurement law

On 15 May 2017 the 1st Public Procurement Tribunal at the Bundeskartellamt decided that the Bundeswehr's planned award of a contract for the construction of five more corvettes of the type K130 to the previous contractor violates public procurement law. The tribunal therefore accepts the application for review filed by a company based in Kiel.

Andreas Mundt, President of Bundeskartellamt: "The principle that procurements have to be made through competition also applies to military equipment. Exceptions are only possible under very strict conditions, for which in the present case there was insufficient evidence."

The company from Kiel complained to the Public Procurement Tribunal about the planned award by the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) in negotiated procedures without the invitation of other companies to participate in the award procedure. BAAINBw argued that this procedure was necessary because only the bidding consortium which had already supplied the same type of ship to the Bundeswehr in the past was able to supply the ships within the period to be observed. The timeframe set results from international alliance commitments of the Federal Republic of Germany.

However, in the tribunal's opinion insufficient proof was provided during the review proceedings that only the previous contractor was able to reproduce the ships within the required period.

The Public Procurement Tribunal's decision is not final and can be immediately appealed before the Düsseldorf Higher Regional Court within a period of two weeks. Should the court confirm the tribunal's decision, the contract cannot be awarded before a competition is organised.