Maximum Number of Lots per Tenderer

The maximum number of lots per tenderer is one of two distinct controls that contracting authorities can apply to manage supplier concentration in multi-lot procurements. It operates at the bid submission stage, before evaluation, by capping the number of lots for which any single supplier may submit a tender.

What is the maximum number of lots per tenderer?

Article 46(2) of Directive 2014/24/EU expressly permits contracting authorities to limit the number of lots for which a single tenderer may apply. This rule is set in the contract notice and procurement documents before the procedure opens. Once published, it is binding on all participants.

The rule differs from the maximum number of lots awarded to one tenderer, which restricts how many lots a supplier can win after evaluation. The maximum per tenderer rule operates upstream: it prevents a supplier from even submitting bids for more lots than the cap allows, regardless of their capability.

The cap is chosen by the contracting authority based on market analysis and the objectives of the lot division strategy. A buyer might set a maximum of two lots per tenderer in a five-lot procedure if it wants to ensure that at least three different suppliers receive contracts, or if it wants bidders to concentrate their proposal quality on a smaller number of lots rather than submitting diluted bids across all five.

Why this rule matters for bidders

The maximum lots per tenderer rule forces a strategic choice before submission. If the cap is two and there are six lots, a supplier must select the two lots where it has the strongest offer, best margin, or most relevant experience. Submitting a mediocre bid for a third lot is not an option.

This has implications for how bidders should prioritise their resources. The lot value of each lot, the competitiveness of the expected field, and the alignment with the company's core capabilities should all inform which lots to select. In a multi-lot tender with a tight cap, the opportunity cost of choosing one lot over another is concrete and immediate.

For consortium bids, the rule typically applies to the consortium as a whole. A supplier that is already part of one consortium bidding for Lot 1 and Lot 2 cannot simultaneously submit as a standalone bidder for Lot 3 if the cap has been reached. Buyers sometimes explicitly address consortium counting in their procurement documents, and bidders should read these provisions carefully.

Example

A Belgian rail authority procures station maintenance services across eight lots, each covering a regional cluster of stations. The contract notice states that tenderers may bid for a maximum of three lots. A large facility management company must choose its three strongest regional lots and invest its proposal resource there, rather than submitting for all eight. A regional specialist with deep expertise in one geography can focus entirely on its home lot without competing against a firm that might otherwise spread across all eight.

Frequently Asked Questions

Can the maximum be set at one lot?

Yes. A contracting authority can set the maximum at one lot if the policy objective is to ensure the widest possible spread of awards across different suppliers. This is common in frameworks designed explicitly to support SME participation or to diversify the supply base for resilience reasons.

What happens if a tenderer submits more bids than the cap allows?

The contracting authority must exclude the excess bids. The procedure for determining which bids are excluded (typically by order of submission, or by the tenderer being asked to withdraw the excess) should be stated in the procurement documents. Tenderers who breach the cap risk having all their bids excluded if the documents so provide.

Does this rule apply in the UK under the Procurement Act 2023?

The UK Procurement Act 2023 and its associated regulations allow contracting authorities to apply equivalent lot restrictions. The underlying policy rationale remains the same: to manage market concentration and ensure competitive outcomes across all lots in a divided procedure.