The Swedish Competition Authority proposes measures to counter abnormally low tenders in public procurement

The report is part of the Government’s assignment to present measures to counteract crime and unfair competition, while promoting competition based on quality.

Rules on abnormally low tenders are an important instrument to prevent contracts being awarded where there is a risk that the supplier will not deliver as agreed. The measures proposed aim to make it easier for procuring organisations to reject abnormally low tenders within the framework of EU law.

“It is in every citizen’s interest that procuring organisations do not accept abnormally low tenders. They risk undermining vital public services, disadvantaging serious suppliers and giving criminal actors access to public funds. The measures proposed will contribute to protecting public procurement from disreputable suppliers and strengthen the conditions for effective and fair competition,” says Marie Östman, Director General of the Swedish Competition Authority.

The Swedish Competition Authority proposes the introduction of a rule in the Public Procurement Act (LOU) and the Act on Public Procurement in the Utilities Sectors (LUF) requiring all tenders more than 30 per cent below the average price to be examined.

It is also proposed that courts should only consider explanations previously submitted by the supplier to the procuring organisation during the tender evaluation. New explanations should not be allowed during the review procedure, except in exceptional cases.

The report further recommends clarifying the allocation of responsibilities when the credibility of a tender is assessed. It also proposes that procuring organisations be required to reject abnormally low tenders under parts of LOU, LUF and the Defence and Security Procurement Act (LUFS) where this has not previously been mandatory.

To counteract abnormally low tenders that are not seriously intended and prevent disreputable actors from being awarded contracts, effective contract management is essential. The Swedish Competition Authority therefore proposes that the Government take measures to strengthen contracting authorities’ contract management. It is also proposed that the National Agency for Public Procurement be tasked with developing practical guidance on abnormally low tenders.

The proposed legislative amendments are proposed to enter into force on 1 July 2026.

The Swedish Competition Authority has also been tasked by the Government with proposing a method to assess to what extent suppliers meet quality requirements in public contracts. This part of the assignment is to be reported by 30 November 2025.

Natacha Otte Widgren, Head of Unit, +46 08-700 16 55, natacha.ottewidgren@kkv.se
Marie Strömberg Lindvall, Press Officer, +46 08-700 15 92, marie.stromberglindvall@kkv.se

Read the report (in Swedish)