Damages after annulment of Ghent police intervention bags award: loss of chance estimated at 50% with two realistic tenderers — lost profit of €9,960 reduced to €4,980 due to uncertainty about hypothetical price investigation outcome
The Council of State awarded BV D. damages of €4,980 following the earlier annulment of the award for police intervention bags in Ghent, finding the loss of chance to obtain the contract constituted compensable damage, the chance was estimated at 50% given two realistic tenderers with comparable scores, and the lost profit of €9,960 was sufficiently demonstrated through supplier price confirmations.
What happened?
The City of Ghent tendered police intervention bags (4-year framework, 300 bags/year) through negotiated procedure without prior publication. Three offers were received. D. and L. offered identical high-quality bags (60/60 quality points each), while C. scored only 30. L. won with the lowest price. The award was annulled (judgment 254.107) for failure to conduct proper price investigation despite indications of abnormally low pricing. D. claimed €9,960 in lost profits (€8.30 margin × 1,200 bags), supported by supplier price confirmations. The Council found causation established but could not determine with certainty whether a proper investigation would have excluded L.'s offer. The chance was estimated at 50% considering two realistic contenders, yielding damages of €4,980 plus interest.
Why does this matter?
This ruling provides a framework for calculating damages after annulment of award decisions, applying the 'loss of chance' concept based on realistic contenders rather than total number of tenderers.
The lesson
Document your purchase price and profit margin with supplier confirmations. Be aware that damages are reduced proportionally to the uncertainty about the chance of obtaining the contract. As contracting authority: always conduct a thorough price investigation before the award decision.
Ask yourself
Do you have concrete evidence of your purchase price and profit margin? As contracting authority: have you conducted a proper price investigation before awarding?
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 →