Lot

A lot is the fundamental building block of structured public procurement. When a contracting authority divides a contract into lots, it creates distinct packages of work, goods, or services, each with its own specification, value, and award decision. Suppliers can then submit tenders for individual lots rather than being required to bid for the entire contract.

What is a lot?

Article 46 of Directive 2014/24/EU gives contracting authorities the power to divide contracts into homogeneous or heterogeneous lots. A lot may be defined by geography (one lot per region), by product category (one lot per type of equipment), by service line (one lot for consultancy, one for implementation), or by any other logical grouping that reflects how the requirement is naturally structured.

Each lot is evaluated independently. It carries its own lot description, its own lot value, and its own award decision. A supplier winning one lot does not automatically win others. This independence is what makes the lot system a genuine tool for market access rather than just an administrative convenience.

The lot structure must be set out clearly in the contract notice published on the Tenders Electronic Daily (TED) for EU member states, or on Find a Tender Service (FTS) in the UK. Buyers must also explain their reasoning if they choose not to divide a contract into lots (see explanation for non-division into lots).

Why lots matter for bidders

Lots directly determine whether a business can realistically compete for a contract. A framework covering all IT services for a national government might have an estimated value far above what most companies could handle. Divided into lots by service type or region, the same contract becomes accessible to specialist firms, regional suppliers, and SMEs.

For bidders, identifying the right lots to target is a core part of bid strategy. A company with strong credentials in cybersecurity but limited capacity in infrastructure management should focus on the security lot rather than spreading resources across a multi-lot tender. Understanding lot value also helps with resource allocation: a high-value lot may justify significant investment in the tender response, while a smaller lot may require a more efficient approach.

The European Commission has consistently encouraged lot division as a mechanism to open public markets to SMEs, and many national procurement reforms across Europe have reinforced this policy direction.

Example

A Dutch municipality procures facility management services covering cleaning, catering, and maintenance. Rather than issuing one large contract, it divides the requirement into three lots: Lot 1 (cleaning services, estimated value EUR 800,000 per year), Lot 2 (catering services, estimated value EUR 400,000 per year), and Lot 3 (maintenance and repairs, estimated value EUR 600,000 per year). A regional cleaning firm with no catering capability can bid for Lot 1 alone, competing on equal terms with larger facility management conglomerates.

Frequently Asked Questions

Is a lot the same as a contract?

Not exactly. A lot is a subdivision of a single procurement procedure. When awarded, each lot typically results in a separate contract (or a separate call-off under a framework). The procurement procedure is one, but the resulting contractual relationships may be several.

Can a buyer merge lots after the tender is issued?

No. The lot structure is fixed once the contract notice is published. Changing the number, scope, or value of lots after publication would materially alter the procurement and would require cancellation and re-issue. Buyers should define their lot division strategy carefully before going to market.

Do all lots in a procedure use the same award criteria?

Not necessarily. Each lot can have its own award criteria and weightings, provided these are published in the tender documents for that lot. In practice, many buyers use consistent criteria across all lots for administrative simplicity, but there is no legal requirement to do so.