Lexipedia

Abnormally low bid

A bid whose price or cost appears unusually low and may raise doubts about feasibility, compliance or fair competition.

An abnormally low bid is not automatically invalid in Swiss procurement, but it triggers careful scrutiny. The contracting authority may need to ask the bidder to explain the price structure, technical solution, labour conditions, subsidies or efficiencies. Exclusion is possible if the explanation is inadequate or the bid appears incapable of lawful and reliable performance. The authority must avoid both accepting unsustainable offers that endanger execution and rejecting aggressive but legitimate pricing without sufficient reasons.