Signing authority must be assessed against the framework agreement's maximum values, not the presumed quantities
The Council of State rejects the suspension request of a tenderer whose offer was declared substantially irregular due to insufficient signing authority, confirming that the validity of the submission report signature must be assessed against the framework agreement's maximum values rather than the presumed quantities in the inventory alone.
What happened?
The Centre Hospitalier Bois de l'Abbaye launches, as central purchasing body, a framework agreement for the supply of CPAP equipment and accessories, divided into two lots, for the benefit of four contracting authorities (two with commitment and two without). The specifications distinguish between presumed quantities (based on current consumption of committed authorities, listed in the inventory) and maximum values of all orders envisaged by all authorities for the total duration of the framework agreement. VIVISOL B's offer is signed by J.M., whose delegation of authority is limited to €500,000 per submission per contract. While the offer amounts based on presumed quantities are below this threshold, the framework agreement's maximum values significantly exceed it. After an initial withdrawal of the award decision following an appeal, the contracting authority re-examines and declares the offer substantially irregular for lack of signing authority.
Why does this matter?
This judgment clarifies that signing authority for the submission report in a framework agreement must be assessed against the maximum values of all orders envisaged for the total duration of the framework agreement, not merely the presumed quantities listed in the inventory. Indeed, the offer constitutes a commitment by the tenderer to perform the contract in accordance with the specifications, including up to the maximum values. The judgment also confirms that the regularity check (signing authority) is distinct from determining the most economically advantageous tender based on award criteria, so using different calculation bases for these two exercises is not contradictory.
The lesson
When submitting a tender under a framework agreement, ensure that the signatory of the submission report has sufficient signing authority to cover the maximum values of all orders envisaged by all beneficiary contracting authorities for the total duration of the framework agreement, not just the presumed quantities in the inventory. The special proxy must also be signed by all persons authorised under the company's articles of association.
Ask yourself
Have you verified that the signatory of your offer has sufficient signing authority to cover the framework agreement's maximum values? Is the special proxy signed by all persons authorised under the articles of association?
About this database
The Council of State (Raad van State / Conseil d'État) is Belgium's supreme administrative court. In disputes over public procurement — from contract awards to tenderer exclusions — the Council of State is the final arbiter. The rulings in this database are summarised by TenderWolf in plain language, with practical lessons for tenderers and contracting authorities. View all rulings →