Abnormally Low Tender Explanation

In public procurement, some tenders may fall below the threshold value or may be considered low compared with other tenders or the estimated contract value. In this case, the contracting authority may request an explanation from the bidder before rejecting the tender outright. The explanation must demonstrate how the price was determined, the documents on which it is based and that the work can be performed in accordance with the contract terms.

An abnormally low tender explanation is not merely the preparation of a written statement. The enquiry letter, tender documents, cost calculations, technical specifications, delivery terms, labour, materials, machinery, transport and other expenses are reviewed together. An incomplete, contradictory or late explanation may result in the company’s tender being excluded from evaluation.

Kılıç Kurumsal Danışmanlık A.Ş. (Kılıç Kurumsal) reviews companies’ files in terms of documents, calculations and deadlines during the abnormally low tender explanation process. The work is intended to explain the tender in an internally consistent and clear manner.

See: Kılıç Tender Glossary | Identification, Enquiry and Explanation of Abnormally Low Tenders in Public Procurement

A. What Is an Abnormally Low Tender?

An abnormally low tender is a tender that falls below the threshold value calculated by the tender commission, taking into account the other tenders or the contracting authority’s estimated contract value. This does not always mean that the tender is incorrect. However, it must be explained whether the tender is realistic, feasible and supported by documentation.

Article 37 of Public Procurement Law No. 4734 concerns the evaluation of tenders, while Article 38 concerns the explanation of abnormally low tenders. The principles of transparency, competition, equal treatment, reliability and meeting needs under appropriate conditions, as set out in Article 5, also form the basis of this process.

For the company, the main issue is not merely defending the low price. What matters is explaining the principal expenses that constitute the price, in accordance with the components requested by the contracting authority and within the prescribed period. The enquiry letter, tender documents and tender cost must therefore be read together.

See: ihale.tv – The contracting authority’s stage of requesting an abnormally low tender explanation

B. How Is an Abnormally Low Tender Explanation Prepared?

The explanation process involves different details for goods procurement, services procurement and works tenders. However, the basic approach common to all tenders is clear: the enquiry letter is reviewed, the requested components are identified, a document and calculation structure is established for each component, and the explanation text is linked to the appendices.

1. Preparation Common to All Tenders

• First, the cost components requested in the enquiry letter are identified.
• The tender documents, technical specifications, draft contract and delivery terms are reviewed together.
• The expenses constituting the tender price are divided into separate items.
• Documentation, a calculation schedule and a brief explanation are prepared for each expense.
• Consistency is sought between document dates, amounts, quantities, units and technical requirements.
• The explanation period, signing authority, EKAP upload structure and legibility of the appendices are checked.

2. Explanation in Goods Procurement Tenders

In goods procurement, the explanation is based on the availability of the product and the basis of the tendered price. The type of goods, technical characteristics, brand or model information, place of delivery, transport, installation, warranty, packaging and other expenses are evaluated together.

Supplier quotations, sales documents, stock information, product descriptions and compliance with the technical specifications must be clearly demonstrated. The company must clearly show that it can deliver the goods at the price it has tendered and in accordance with the contract terms.

3. Explanation in Services Procurement Tenders

In services procurement, items such as labour, equipment, materials, travel, meals, insurance, hire, maintenance and management expenses become important. For labour-based services, the labour calculation, the period of work and the provisions in the tender documents must be reviewed carefully.

Depending on the nature of the service, expenses relating to vehicles, machinery, consumables, training, clothing, security, health, cleaning or similar matters may also be addressed separately. The place of each item within the total tender price must be clear.

4. Explanation in Works Tenders

In works tenders, the explanation is structured around the relationship between work items, analysis inputs, quantity take-offs, materials, labour, machinery, transport and the work programme. It is not sufficient merely to state that the total price is not low. The inputs and calculations by which the work will be performed must be demonstrated.

Links must be established between the designs, unit price descriptions, analyses and technical requirements. In particular, high-value work items, special manufacturing, transport distances, use of machinery and labour periods must be calculated clearly.

See: ihale.tv – How is an abnormally low tender explanation submitted through EKAP? | Kılıç Akademi – book on abnormally low tenders

C. How Do We Assist Companies?

The purpose of an abnormally low tender explanation is to establish an explanation structure that complies with the enquiry letter and is clear, verifiable and consistent. Kılıç Kurumsal conducts this process on the basis of files and calculations.

1. The Enquiry Letter and Tender Documents Are Reviewed

First, the components queried by the contracting authority are identified. If the enquiry letter is unclear, its effect on the explanation is evaluated separately. The administrative specifications, technical specifications, draft contract and unit price descriptions are read together.

2. An Explanation Plan and Document List Are Prepared

A document list is prepared according to the type of goods, services or works procurement. The document to be used for each expense is identified. Any missing documents, contradictory prices, incompatible technical explanations or deadline issues are identified at the outset.

3. A Calculation Schedule and Explanation Text Are Prepared

The items constituting the price are incorporated into a schedule. The quantity, unit price, total amount and supporting document are presented within the same structure. The explanation text is drafted consistently with this schedule and the documents.

4. Final Checks and Submission Arrangements Are Completed

A final check is performed to ensure that the explanation is submitted within the prescribed period, by the correct person and in the correct manner. The names, order, legibility and signature status of the documents to be submitted through EKAP are checked.

5. Deliverables That May Be Prepared at the End of the Work

Deliverable

Brief Description

Explanation Plan

Expense items and document structure based on the enquiry letter.

Calculation Schedule

Calculation of the quantities, unit prices and total amounts constituting the price.

Document Checklist

Identification of missing, contradictory or risky documents.

Explanation Text

Making the text to be submitted to the contracting authority clear and well organised.

Final Review Note

Review of the deadline, signature, EKAP, document names and arrangement of appendices.

D. How Can You Obtain Assistance from Us?

A company that receives an abnormally low tender enquiry must proceed with an awareness that the available period is short. It does not have to describe the entire file at length in its initial application. However, the current stage of the process and the final deadline must be stated clearly.

1. Information Useful to Share in the Initial Application

• Name of the tender, name of the contracting authority and tender registration number.
• Abnormally low tender enquiry letter and its notification date.
• If unavailable on EKAP (unannounced negotiated tenders, etc.), the administrative specifications, technical specifications, draft contract and unit price schedule.
• The company’s tender price and any available costing study.

2. The Scope of Work Is Defined in Writing

After the request is received, the subject matter, timeframe and document status are reviewed. The scope of the work, type of document to be delivered, timeframe and quotation are communicated in writing. This enables the company to understand from the outset which service it is receiving and which deliverable it can expect.

3. The Distinction Regarding Legal Proceedings Is Maintained

This page concerns the corporate consultancy and file review services of Kılıç Kurumsal. For matters requiring litigation, a power of attorney or legal representation, the separate professional organisation and the relevant information section are taken into consideration.

To apply: Kılıç Kurumsal – Corporate Service Request | For information: Kılıç Hukuk | For videos: ihale.tv | For books: Kılıç Akademi

Brief Note

An abnormally low tender explanation concerns not only defending the company’s tender but also organising its file clearly and systematically. A proper preliminary review carried out in good time may reduce the risk of subsequent loss of rights.