What is an Award Letter?
The award letter (German: Zuschlagsschreiben) is the formal written notification from a contracting authority to the bidder whose offer has been accepted. Upon receipt of this letter, the contract between the contracting authority and the contractor typically comes into effect.
Legal Framework
The award letter is governed by several provisions in German procurement law:
- Section 127 GWB: Award and award criteria
- Section 134 GWB: Information and standstill obligation before contract award
- Section 58 VgV: Award above EU thresholds
- Section 43 UVgO: Award below EU thresholds
Contents of an Award Letter
A complete award letter typically includes:
| Element | Description |
|---|---|
| Procurement reference | Unique identifier of the procedure |
| Subject of contract | Description of the tendered service |
| Reference to offer | Date and identifier of the accepted bid |
| Contract value | Award amount as per the bid |
| Performance period | Start and end dates |
| Contract conditions | Reference to applicable terms (VOB/B, EVB-IT, etc.) |
Timeline
The typical timeline leading to an award letter:
- Bid evaluation: Assessment of all submitted offers
- Standstill notification (Section 134 GWB): Informing unsuccessful bidders at least 15 calendar days (10 days for electronic transmission) before award
- Standstill period: Waiting period without review application
- Award letter: Dispatch to the successful bidder
- Contract formation: Upon receipt of the award letter
Legal Consequences
Upon receipt of the award letter:
- Contract formation: The contract is concluded (offer + acceptance)
- Performance obligation: The contractor must deliver the services
- Payment obligation: The authority must pay the agreed price
- Binding effect: Both parties are bound by the contract terms
Common Errors
Typical mistakes that can invalidate the award:
- Award before standstill period expires – contract is voidable under Section 135 GWB
- Deviation from the offer – modified conditions mean no valid contract
- Award after bid validity expires – acts as a new offer from the authority
How Patterno Helps
With Patterno, you can track all ongoing procurement procedures and their status. Our AI-powered platform notifies you about deadlines and helps ensure you never miss an award letter or standstill notification.