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16/04/2014 PROFILE > Autorité judiciaire et administrative , Chef d'entreprise , Direction , Avocat

Council of State, collective proceedings and public procurement agreements: the decision of 26 March 2014 which is a precedent

In its decision no. 374387 of 26 March 2014, the Council of State established new obligations in the framework of the procedure for awarding public contracts. This decision notably concerns those instances where offers are issued by companies which are under bankruptcy proceedings prior to award of the public contract, or after being awarded such a contract.

The decision by the High Court may be resumed in two points:

  1. In such instance as administration is declared following the deadline fixed for bids, the company concerned should then immediately notify the awarding body. The latter should then verify whether the bid is still admissible, which leads to ensuring that the company is entitled to continue its activities during performance of the contract.  If this is not the case, it should declare this inadmissible and purely and simply rule it out.
  2. A company under administration should declare this situation prior to award of the public contract. This will avoid, as far as possible, misleading declaration in calls for tenders in the framework of public procurement proceedings which may lead to depriving certain competitors of a public contract which the company under administration cannot respect.

Consult the entire decision no. 374387 of 26 March 2014 of the Council of State on Legifrance.