Market survey

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Every procurement procedure should be preceded by a market survey. Sometimes there is an obligation (often under subsidy law) to conduct a market survey. In this way, the contracting authority can obtain an overview of the potential bidders, the products, the methods available on the market and the prices charged. The market survey can also serve as a basis for preparing the award documents, for determining the correct type of procurement procedure or for estimating the contract value. The contracting authority may also inquire with known companies for the purpose of market reconnaissance and ask for concrete technical details or prices and their composition. It goes without saying that he is obliged to make the subsequent invitation to tender open to competition and product-neutral. It is advisable for the contracting authority to document the market survey in order to ensure transparency.

It is forbidden to carry out the market survey by way of a procurement procedure. Thus, if a procurement procedure is carried out for information purposes only, without the intention to award a contract, this is inadmissible. Bidders are to be protected from the expense of preparing a bid without the prospect of being awarded a contract.

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