Unsuccessful and abandoned procurements

A procurement is unsuccessful when the tender exercise produces no tender the authority can accept, either because nobody bid or because every bid received has to be set aside. It is abandoned when the authority decides to stop the procurement without awarding anything, even though usable tenders exist. The two situations are different in law and lead to very different next steps for the bidders.

How it works

Under the Procurement Act 2023, which applies in England, Wales and Northern Ireland, failure is defined by the tenders received. Section 43 lets an authority switch to direct award when it has invited tenders or requests to participate under a competitive tendering procedure, has received no suitable tenders or requests in response, and considers that a normal award is not possible in the circumstances (verified 2026-09-05). A tender is unsuitable if it would be disregarded under section 19(3), if it does not satisfy the authority's requirements or its award criteria, if there is evidence of corruption or collusion, or if it materially breaches a procedural requirement in the tender notice or the tender documents. Section 19(3) itself covers tenders from suppliers that fail the conditions of participation, tenders from suppliers that are not UK or treaty state suppliers, abnormally low tenders and tenders that breach a stated procedural requirement.

In practice the authority chooses between three routes: retender, run a competitive flexible procedure with the bidders whose tenders were usable, or award directly under section 43. Scotland and Ireland reach a similar result through the negotiated procedure without prior publication, on condition that the original terms of the contract are not substantially changed.

Abandonment is a decision of the authority, taken for its own reasons: the need has gone, the budget will not stretch, the documents were flawed, competition was too thin. It can happen at any time before signature. The Act requires a procurement termination notice to be published on the central digital platform as soon as reasonably practicable after the decision, so that suppliers stop spending money on a dead exercise.

What it means for a bidder

A failed procurement is an opportunity. The need is still there, the timetable has slipped, and the authority may be able to talk to you directly. If your tender was usable, you are well placed for whatever comes next, so stay in contact with the buyer rather than waiting for a new notice. If you never saw the first notice, watch for the retender: the second version is often lighter, with a revised budget or fewer mandatory requirements.

If your tender was disregarded, ask for the reasons and read the assessment summary carefully. Most disqualifications are procedural, not technical: a late upload, a missing certificate, a form completed in the wrong format. Those are cheap mistakes to fix and expensive ones to repeat. If your price was ruled out as unaffordable, you have learnt what the budget really was.

Abandonment is more frustrating, because the time invested is lost and no compensation follows. Check that the stated reason is credible; an abandonment used to steer a contract elsewhere can be challenged.

Example

A schools catering exercise worth about £130,000 a year is run as a below-threshold procurement. One tender arrives, priced 40 per cent above the budget, and it is set aside. The authority publishes a procurement termination notice, then retenders with lighter requirements on certified produce and invites three local firms directly. A catering SME that had missed the first notice wins the contract.

Frequently asked questions

Can a buyer award directly after a failed procurement?

Yes. Where no suitable tenders were received and a normal award is not possible, section 43 allows a switch to direct award, provided the contract is not materially changed.

Am I compensated if the procurement is abandoned?

No. Bid costs are your own. A claim only arises if the authority breached its duties, for example by giving a fictitious reason to favour another supplier.

How do I find out that a procurement failed?

Bidders are told individually. An abandoned exercise produces a procurement termination notice on the central digital platform, and a retender appears as a fresh tender notice, usually with almost the same title.

Related terms

• Competitive tendering
• Competitive flexible procedure
• Below-threshold procurement
• Abnormally low tender
• Contract award notice

Scoutee can alert you when a failed procurement in your sector comes back to the market.