Concession Award Procedure

The award of a concession contract follows different procedural rules from the award of a standard public contract. While Directive 2014/24/EU mandates specific procedures (open, restricted, competitive dialogue, and others) for ordinary contracts, the Concessions Directive 2014/23/EU gives contracting authorities wide latitude to design the concession award process to suit the complexity and long-term nature of the arrangement.

What is a Concession Award Procedure?

Under Directive 2014/23/EU, a contracting authority awarding a concession contract above the EU threshold must follow certain minimum requirements, but within those requirements it retains broad procedural freedom.

The mandatory elements are:

Publication of a concession notice in the Official Journal of the EU (OJEU). The notice must describe the subject matter of the concession, any conditions for participation, the award criteria or the method for determining them, and the estimated duration. This ensures market-wide visibility and transparency.

Minimum time limits. The directive sets a minimum time limit of 30 days between publication of the concession notice and receipt of applications or tenders. Contracting authorities may set longer periods where the complexity of the concession justifies it.

Equal treatment and transparency throughout the process. Selection criteria and award methodology must be applied consistently to all candidates. Substantial changes to the procedure after the notice is published require fresh publication.

Beyond these requirements, the authority chooses how many stages to include, whether to run a dialogue with shortlisted candidates (similar to competitive dialogue under 2014/24/EU), how to evaluate technical and financial proposals, and what documentation to require. This flexibility is designed to accommodate the complexity of long-term infrastructure and service arrangements, where the optimal solution often cannot be fully specified at the outset.

When the process concludes, the authority must publish a concession award notice in the OJEU within 48 days of signing the contract. Unsuccessful candidates must receive information about the reasons for rejection.

In the UK, the Concession Contracts Regulations 2016 (as retained and amended law) replicate this flexible procedural model, with OJEU notices replaced by Find a Tender Service notices under the post-Brexit framework.

Why concession award procedures matter for bidders

The flexibility in the concession award procedure means that each competition has a bespoke shape. There is no standard tender pack to anticipate. Bidders must read the concession notice carefully to understand the number of stages, the selection criteria being applied, whether dialogue will take place, and what evaluation approach the authority has designed.

The absence of fixed procedural templates also means that challenging an award decision requires careful analysis of whether the authority actually complied with its own stated process, rather than checking against a prescribed regulatory template. Documentation of equal treatment is harder to audit but no less legally binding.

Bidding on works concessions and services concessions through this flexible process typically requires significant pre-market engagement. Many contracting authorities hold market consultation days or publish preliminary market notices before launching the formal process, allowing operators to shape their bid teams and funding structures in advance.

Example

A Polish city wishes to award a 20-year underground car park concession. It publishes a concession notice in the OJEU and on the national platform, inviting expressions of interest. From the expressions received, it shortlists three candidates and invites them to a structured dialogue covering design, tariff structure, and risk allocation. After the dialogue, it invites final bids and evaluates them against criteria weighted 40% financial model, 35% operational plan, and 25% design quality. It publishes an award notice within 48 days of signing.

Frequently Asked Questions

Can contracting authorities use the standard open procedure for concessions?

They may structure their process to look like an open procedure (single stage, no dialogue), but they are not bound to do so under Directive 2014/23/EU. Many contracting authorities prefer a two-stage process for complex concessions because it limits the cost of preparing full bids to a shortlist of qualified candidates.

What selection criteria may a contracting authority use?

The directive permits contracting authorities to set selection criteria relating to professional and technical ability and financial capacity, similar to the selection criteria used under Directive 2014/24/EU. Minimum standards must be linked and proportionate to the subject matter of the concession. Criteria that have the effect of discriminating against operators from other EU member states are not permitted.

Is standstill required before signing a concession contract?

Directive 2014/23/EU does not expressly mandate a standstill period in the same terms as Directive 2014/24/EU, but the directive's transparency and review provisions, together with national transposition rules, typically impose a standstill. Unsuccessful tenderers must be informed of the award decision before signature, and most EU member states have implemented review rights that implicitly require a gap between notification and contract signature.