Part 3: Award of public contracts and procedures Chapter 2: Competitive award Section 19: Award of public contracts following a competitive tendering procedure
Section 19 sets out the principles of awarding public contracts that apply following a competitive tendering procedure.
	Subsection (1) provides that in a competitive tendering procedure, a contracting authority may only award a contract to the supplier that submits the "most advantageous tender".
	Subsection (2) explains how the most advantageous tender is identified. This is determined by the contracting authority, following its assessment of the tenders submitted, and is the tender that both satisfies the contracting authority’s requirements and best meets the award criteria. It provides that when assessing tenders against the award criteria, contracting authorities must base that assessment on the assessment methodology as defined in section 23(3)(a) and (where there is more than one award criterion) the relative importance of the award criteria - if there is only one criterion, tenders will be assessed against that single criterion. The possibility for there to be only one award criterion or a number allows contracting authorities to, for example, award the contract to the supplier submitting the lowest priced tender (where price is the sole criterion) or to the supplier submitting the tender that scores best across a range of price and quality criteria. The options available to contracting authorities to indicate the relative importance of the award criteria are set out in section 23(3) (award criteria).
	Subsection (3) sets out the circumstances where a contracting authority must or may disregard a tender. Subsection (3)(a) requires contracting authorities to disregard a tender where the supplier does not satisfy the conditions of participation (which are set out in section 22).  Subsection (3)(b) gives contracting authorities discretion as to whether they disregard a tender where the supplier is not a United Kingdom or "treaty state supplier" or where the supplier intends to sub-contract the delivery of the contract or part of the contract to a supplier that is not a United Kingdom supplier or treaty state supplier. (A treaty state supplier is defined in section 89 (treaty state suppliers).) Subsection (3)(c) makes clear that contracting authorities may disregard an abnormally low tender.  Whether contracting authorities investigate or disregard abnormally low tenders is within their discretion and there is no obligation to do so.  Subsection (4) makes further provision about disregarding abnormally low tenders. Subsection (3)(d) gives contracting authorities discretion as to whether they disregard a tender that breaches a procedural requirement set out in the tender notice or associated tender documents.
	Subsection (4) provides that before a contracting authority may disregard an abnormally low tender, which is provided for in (3)(c), they must first notify the supplier and give them the opportunity to demonstrate that they are able to deliver the contract at the price offered. [A tender may not be disregarded simply because the price appears low, but only where the contracting authority considers that the price is so abnormally low that the contract cannot be performed for the tender price.] For example, a low price might be due to production efficiencies or leveraging economies of scale. Alternatively, a low price might be due to inaccuracies in cost modelling or as a result unlawful practices or funding sources, casting doubt on the ability of the tender to perform the contract.
	Subsection (5) clarifies that if the supplier successfully demonstrates, in the judgement of the contracting authority, that they are able to deliver the contract, then the abnormally low tender may not be disregarded.
	Subsection (6) clarifies that a breach of a procedural requirement includes in relation to the tender. This would include, for example, where there are material omissions in the tender.
	Subsection (7) clarifies that a reference to a contracting authority’s requirements is a reference to the requirements described in either the tender notice or associated tender documents. Further details in this regard are set out in section 21(5) and (6).
	Subsection (8) refers to section 26 (excluding suppliers from a competitive award) and section 28 (excluding suppliers by reference to sub-contractors), which make provision for disregarding tenders from suppliers that are excluded or excludable suppliers or that are intending to subcontract to excluded or excludable suppliers. (Excluded and excludable suppliers are defined in section 57 (meaning of excludable suppliers)).
	Subsection (9) refers to section 32 (reserving contracts to supported employment providers) and section 33 (reserving contracts to public service mutuals), which make provision for reserving public contracts to supported employment providers and qualifying public service mutuals. (Supported employment providers and qualifying public service mutuals are defined in section 32(4) and section 33(5) respectively.)
	Subsection (10) refers to section 34 (competitive award by reference to dynamic markets) which makes provision for disregarding tenders from suppliers that are not members of a dynamic market, when the contract is being awarded under a dynamic market.
	Subsection (11) provides that "procedural requirement" includes a requirement that a supplier provide information.