4.4.2 Cancellation of the tender procedure

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The tender procedure may be cancelled before the date set for the expiry of the deadline for the submission of Tenders for specific and justified reasons, by decision of the Contracting Authority.

Cancellation of the tender procedure after expiry of the deadline for the submission of tenders may be decided by the competent body of the Contracting Authority, where one or more of the following conditions apply:

a.When no tender has been submitted within the specified deadline,
b.When it is established that the tender documents contain terms or technical specifications that can not be met by any of the tenderers or that these specifications lead exclusively to a specific economic operator,
c.When the prices of all tenders meeting the terms and the technical requirements of the tender documents are unrealistic or appear to be the product of collusion between the tenderers, resulting in the circumvention of healthy competition,
d.When the circumstances under which the tender procedure was announced have changed to such an extent that the scope of the tender procedure is no longer necessary, or
e.When any other serious unforeseeable reason, which the Competent Body deems to be justifiable, applies.

The decision of the Contracting Authority to cancel the tender procedure must be fully justified, particularly so when the cancellation is due to a change in the circumstances under which the tender procedure was announced or to other unforeseeable reasons. In any case, the fact that the interested economic operators consumed time and resources, which can not be considered negligible, for preparing their tenders should not be neglected, especially in the case of complex contracts with a complicated scope.

In any case, the Contracting Authority should bear in mind that the cancellation of the tender procedure is a decision that precedes the conclusion of the contract and as such, pursuant to the law, gives the right to any interested party who has or had an interest in being awarded the specific contract, and who has sustained or is likely to sustain a loss as a result of the cancellation, to file a hierarchical recourse to the Tenders Review Authority.

© 2007 Republic of Cyprus, Treasury of the Republic, Public Procurement Directorate
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