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What Is an Underpriced Bid (Unterangebot, Germany)?
This is a German procurement term. A bid that attempts to distort competition through an impermissibly low price.
What is an Unterangebot?
A bid with a price so low that it appears not to cover the costs, raising the suspicion that it is not seriously calculated or is intended to distort competition.
What must the buyer do?
Investigate. It must ask the bidder to explain the price and may only reject the bid if the explanation is unsatisfactory.
Can a low price be legitimate?
Yes, if it is based on efficient methods, favourable conditions or a deliberate strategy the bidder can afford. The explanation must be concrete.
