Rejection of suspension application: discontinuation of simplified negotiated procedure for advertising shelters Sint-Truiden justified by suspected incorrect estimate — evolving insight not arbitrary
The Council of State rejected the suspension application by BV B. against the discontinuation by Sint-Truiden of the simplified negotiated procedure for advertising shelters and boards (2026-2036), because the contracting authority had reasonably discontinued the procedure based on evolving insight that the estimate was likely incorrectly determined, in order to guarantee free competition.
What happened?
Sint-Truiden approved a 10-year contract (2026-2036) for advertising shelters and boards, estimated at €120,000 in total revenues, using a simplified negotiated procedure (threshold €221,000 under article 41 §1 1° of the 2016 Public Procurement Act). Only BV B. submitted an offer, which was higher than the threshold. Sint-Truiden discontinued the procedure on 10 October 2025, planning to restart with an open procedure. BV B. argued the estimate was correct because it was based on revenues (the contractor's payment to the city), not the total contract value. The Council found that the contracting authority had realized through evolving insight that the estimate was likely based on the wrong parameter — article 7 of the Royal Decree of 18 April 2017 requires estimating the total remuneration of the service provider, not just the contracting authority's revenues. The discontinuation to guarantee free competition was reasonable. The single ground was not serious.
Why does this matter?
This ruling confirms that evolving insight about an incorrect estimate justifies discontinuing a procedure under article 85 to guarantee free competition. The estimate must be based on the total value of the service provider's remuneration, not the contracting authority's revenues.
The lesson
Base the estimate on the service provider's total remuneration (article 7 Royal Decree), not on the contracting authority's revenues. When an offer reveals the estimate was likely incorrect, discontinuation is a legitimate response, not arbitrary action.
Ask yourself
Is the estimate based on the correct parameter (total service provider remuneration, not just revenues to the contracting authority)? Does the estimate justify the chosen procedure?
About this database
The Council of State (Raad van State / Conseil d'État) is Belgium's supreme administrative court. In disputes over public procurement — from contract awards to tenderer exclusions — the Council of State is the final arbiter. The rulings in this database are summarised by TenderWolf in plain language, with practical lessons for tenderers and contracting authorities. View all rulings →