The abnormally low price in a public tender

A bid is deemed abnormally low when its price is so low that it casts doubt on the firm's ability to perform the contract under normal conditions. It is not simply "the cheapest bid": it is a price that does not appear to cover the real cost of the work. The framework is set by articles L2152-5 and L2152-6 of the French Public Procurement Code.

How the buyer detects an abnormally low price

There is no automatic percentage threshold. The buyer compares the bid with its own estimate, the average of other bids and the detailed price schedule. A large gap, a line priced at zero, or a price that ignores a requirement of the specifications triggers the doubt. The buyer cannot reject the bid on suspicion alone.

The adversarial procedure is mandatory

Before any rejection, the buyer must ask the bidder in writing to justify the price. This is the adversarial procedure: the firm is given a deadline to explain. The bid may only be set aside if the justifications are insufficient, or if the low price stems from illegal State aid or a breach of labour or environmental law.

How to justify a low bid as a small business

Answer precisely, line by line. Admissible reasons include a more efficient manufacturing or delivery process, an original technical solution, particularly favourable supply conditions, lawful aid, or an organisation that genuinely lowers cost. Attach numbers: material cost, time spent, hourly rate, margin. A clear memo turns a "suspicious price" into a "controlled price".