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Súdny dvor Európskej únie·20.11.2003

C-314/01

ECLI:EU:C:2003:628

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Súdny dvor Európskej únie
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62001CC0314

OPINION OF MR GEELHOED — CASE C-314/01

OPINION OF ADVOCATE GENERAL GEELHOED delivered on 20 November 2003 1

I — Introduction 3. The facts and proceedings relating to the dispute in which the questions submitted for a preliminary ruling have arisen are complex. They will be described below in Part III of this Opinion. It will be clear from this context that there may be reasonable 1. In this case the Court has been asked to doubt as to the admissibility of these give a preliminary ruling on four questions questions, which, since the dispute in the concerning the interpretation of Council main action has become devoid of any Directive 89/665/EEC of 21 December subject-matter, have become completely or 1989 on the coordination of the laws, partially hypothetical. regulations and administrative provisions relating to the application of review proce- dures to the award of public supply and public works contracts,2 as amended by Council Directive 92/50/EEC of 18 June 1992 relating to the coordination of proce- dures for the award of public service contracts (hereinafter 'Directive 89/665'). 3

2. These questions have arisen in a dispute between Siemens AG Österreich ('Siemens') and ARGE Telekom & Partner ('ARGE 4. Although the wording of the questions is Telekom'), on the one hand, and the itself complex, it provides, in conjunction Hauptverband der österreichischen Sozial- with the statement of reasons for the order versicherungsträger (Central Association of for reference, a sufficient basis for a reply. Austrian Social Security Institutions), the The relevant aspects of that order will contracting authority ('the Hauptverband'), therefore be summarised in Part III of this on the other. Opinion. In essence, the Bundesverga- beamt, the body submitting the questions, asks whether, given its (limited) powers, the 1 — Original language: Dutch. manner in which the Austrian legislature 2 — OJ 1989 L 395, p. 33. has implemented Directive 89/665 is appro- 3 — OJ 1992 L 209, p. 1. priate.

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I I— Legislative background particular, the Member States may require that the person seeking the review must have previously notified the contracting authority of the alleged infringement and of his intention to seek review.' A — Community law

5. Article 1(1) and (3) of Directive 89/665 6. Article 2(1), (6), (7) and (8) of Directive reads as follows: 89/665 reads as follows:

' 1 . The Member States shall take the '1. The Member States shall ensure that the measures necessary to ensure that, as measures taken concerning the review regards contract award procedures falling procedures specified in Article 1 include within the scope of Directives 71/305/EEC, provision for the powers to: 77/62/EEC, and 92/50/EEC, decisions taken by the contracting authorities may be reviewed effectively and, in particular, as rapidly as possible in accordance with the conditions set out in the following Articles and, in particular, Article 2(7), on the (a) take, at the earliest opportunity and by grounds that such decisions have infringed way of interlocutory procedures, Community law in the field of public interim measures with the aim of procurement or national rules implement- correcting the alleged infringement or ing that law. preventing further damage to the interests concerned, including mea- sures to suspend or to ensure the suspension of the procedure for the award of a public contract or the implementation of any decision taken by the contracting authority;

3. The Member States shall ensure that the (b) either set aside or ensure the setting review procedures are available, under aside of decisions taken unlawfully, detailed rules which the Member States including the removal of discrimina- may establish, at least to any person having tory technical, economic or financial or having had an interest in obtaining a specifications in the invitation to ten- particular public supply or public works der, the contract documents or in any contract and who has been or risks being other document relating to the contract harmed by an alleged infringement. In award procedure;

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(c) award damages to persons harmed by a court or tribunal within the meaning of an infringement. Article 177 of the EEC Treaty (now Article 234 EC) and independent of both the contracting authority and the review body.

The members of such an independent body shall be appointed and leave office under the same conditions as members of the 6. The effects of the exercise of the powers judiciary as regards the authority respon- referred to in paragraph 1 on a contract sible for their appointment, their period of concluded subsequent to its award shall be office, and their removal. At least the determined by national law. Furthermore, President of this independent body shall except where a decision must be set aside have the same legal and professional prior to the award of damages, a Member qualifications as members of the judiciary. State may provide that, after the conclusion The independent body shall take its deci- of a contract following its award, the sions following a procedure in which both powers of the body responsible for the sides are heard, and these decisions shall, by review procedures shall be limited to means determined by each Member State, awarding damages to any person harmed be legally binding.' by an infringement.

7. The Member States shall ensure that 7. Article 25 of Directive 92/50 provides: decisions taken by bodies responsible for review procedures can be effectively enforced.

'In the contract documents, the contracting authority may ask the tenderer to indicate in his tender any share of the contract he 8. Where bodies responsible for review may intend to subcontract to third parties. procedures are not judicial in character, written reasons for their decisions shall always be given. Furthermore, in such a case, provision must be made to guarantee procedures whereby any allegedly illegal measure taken by the review body or any alleged defect in the exercise of the powers This indication shall be without prejudice conferred on it can be the subject of judicial to the question of the principal service review or review by another body which is provider's liability.'

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8. Article 32 of Directive 92/50 stipulates: 3. The contracting authority shall specify, in the notice or in the invitation to tender, which references it wishes to receive.

'1. The ability of service providers to perform services may be evaluated in particular with regard to their skills, effi- 4. The extent of the information referred to ciency, experience and reliability. in Article 31 and in paragraphs 1, 2 and 3 of this Article must be confined to the subject of the contract; contracting autho- rities shall take into consideration the legitimate interests of the service providers as regards the protection of their technical 2. Evidence of the service provider's tech- or trade secrets.' nical capability may be furnished by one or more of the following means according to the nature, quantity and purpose of the services to be provided:

B — National law

9. Directives 89/665 and 92/50 were trans- posed into Austrian law in the Bundesgesetz über die Vergabe von Aufträgen 1997 (Federal Procurement Law 1997, BGBl. I, (c) an indication of the technicians or 1997/56, in the version published in BGBl. technical bodies involved, whether or I, 2000/125; hereinafter 'the BVergG'). not belonging directly to the service provider, especially those responsible for quality control;

10. Paragraph 31 of the BVergG concerns the services performed by subcontractors and reads as follows:

'(1) The contract documents shall specify (h) an indication of the proportion of the whether subcontracting is permitted. contract which the service provider The subcontracting of the whole con- may intend to sub-contract. tract is not permitted except in the case

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of purchase agreements and subcon- compelling reasons, especially if before tracting to undertakings associated the end of the tendering period circum- with the contractor. In the case of stances become known which, had building contracts the subcontracting they been known earlier, would not of the majority of the services ... is not have led to an invitation to tender or permitted.... The contracting authority would have led to an invitation to shall ensure that the contractor's sub- tender essentially different in sub- contractors themselves perform the stance. greater parts of contracts subcon- tracted to them. In exceptional cases the contracting authority may specify in the contract documents, stating its reasons, that it is permissible for the majority of the contract to be subcon- tracted. Subcontracting parts of the (2) The withdrawal should be made contract is, moreover, permitted only if known in the same manner as the the subcontractor is qualified to per- invitation to tender. form his share of the work.

(3) Tenderers and applicants to whom the contract documents have already been (2) The contracting authority shall ask the forwarded should be notified without tenderer in the contract documents to delay of the withdrawal and of the indicate in his tender the proportion of reasons therefor.' the contract which he may intend to subcontract to third parties. This information shall be without prejudice to the question of the contractor's liability.' 12. Paragraphs 52, 53, 53a, 54, 55 and 56 of the BVergG — on the assessment of tenders — read as follows:

11. Paragraph 40 of the BVergG — on withdrawal of the invitation to tender during the tendering period — stipulates: 'Paragraph 52 (Elimination of tenders)

'(1) During the tendering period the invita- (1) Before the contracting authority pro- tion to tender may be withdrawn for ceeds to the selection of the tender I - 2556

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qualifying for the award of the con- Paragraph 53 (Selection of the tender for tract, it should immediately eliminate the award of the contract; the best tender the following tenders on the basis of principle) the results of the assessment:

From among the tenders remaining after elimination, the most favourable from a 1. tenders submitted by applicants technical and economic standpoint shall be who are unqualified or do not awarded the contract, in accordance with have the necessary financial, man- the standards laid down in the invitation to agerial or technical capability or tender (the best tender principle). A written are not reliable; statement of reasons for the decision awarding the contract shall be drawn up ...

Paragraph 53a (Announcement of the award of the contract)

8. tenders which do not satisfy the tender requirements and faulty and (1) The contracting authority should incomplete tenders, if these short- inform the remaining tenderers with- comings have not been or cannot out delay in writing or by fax ... of the be remedied, or partial tenders, if tenderer to which the contract is to be they are not admitted; awarded. In connection with subpara- graph 4, this communication may be used to give the unsuccessful tenderers all the reasons for the rejection of their tenders.

9. tenders received from applicants who, immorally or contrary to the principle of effective competition, have come to agreements with other applicants which are disad- (2) On penalty of annulment, the contract vantageous to the contracting shall not be awarded within a refrain- authority; ing period of two weeks from the

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announcement of the decision award- or with the legitimate commercial ing the contract referred to in subpar- interests of undertakings or does not agraph 1 ... . If an accelerated harm free and fair competition. procedure is adopted because of a need for urgency, the refraining period shall be shortened to one week.

(5) If an unsuccessful tenderer takes the view that the decision taken by the contracting authority infringes the provisions of this Law and that he is consequently at risk of suffering a loss, he must inform the contracting author- (3) Unsuccessful tenderers may request in ity without delay of his intention to writing within a period of one week or, open a review procedure, stating his if because of a need for urgency an reasons. accelerated procedure is adopted pur- suant to Paragraph 69, within a period of three days, after the announcement of the decision awarding the contract, to be informed of the grounds on which their tenders did not quality Paragraph 54 (Award and implementing and of the features and advantages of agreement) the selected tender.

(1) During the award period the contrac- tual relationship shall come into being at the time when the tenderer receives written confirmation of the acceptance (4) The contracting authority should of his tender. If the award period is notify the unsuccessful tenderers of exceeded or if the contract departs the name of the selected tenderer and from the tender, the contractual rela- the amount for which the contract has tionship shall come into being only on been awarded without delay on receipt the tenderer's written declaration that of the request — provided that it has he accepts the contract. The tenderer been made in time — and in any case should be given an appropriate period three days before the end of the within which to make this declaration. refraining period. The unsuccessful tenderers should also be informed of the features and advantages of the selected tender, provided that the dis- closure of this information is not inconsistent with the public interest (2) ... I - 2558

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Paragraph 55 (Cancellation of the invita- Paragraph 56 (Termination of the award tion to tender after the expiry of the tender procedure) period)

(1) The award procedure shall end with ( 1 ) After the tender period has expired, the the establishment of the supply agree- invitation to tender shall be cancelled ment or with the cancellation of the where there are mandatory reasons for invitation to tender. doing so.

(2) The invitation to tender may be (2) Each unsuccessful tenderer should be cancelled if, following the elimination notified in writing immediately after of tenders in accordance with Para- the termination of the procedure. ...' graph 52, only one tender remains.

(3) The invitation to tender shall be 13. Paragraph 113 of the BVergG defines deemed to have been cancelled if no the powers of the Bundesvergabeamt. It tenders are received or if only one reads as follows: tender is received.

'(1) The Bundesvergabeamt is responsible (4) Tenderers shall be informed without on application for carrying out a delay if the invitation to tender is review procedure in accordance with cancelled and shall be informed of the the following provisions. reason.

(5) The cancellation of an invitation to (2) Until the award of the contract, and tender ... shall be announced in the for the purposes of removing infringe- same way as the invitation to tender. ments of this Federal Law and of the

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regulations made hereunder, the Bun- procedure shall be declared void by desvergabeamt may: administrative order of the Bundesver- gabeamt, with due regard for the recommendation of the mediation committee in the case concerned, if it

1. grant interim measures; and

1. is inconsistent with the provisions of this Federal Law or of the 2. declare void decisions of the regulations made hereunder and awarding department of the con- tracting authority that have been taken unlawfully.

2. has a significant influence on the outcome of the contract award (3) Once the contract has been awarded or procedure. the contract award procedure has been ended, the Bundesvergabeamt may determine that, as a result of an infringement of this Federal Law or of any regulations made hereunder, the award was not made to the tenderer who submitted the best offer. In such proceedings, the Bundesvergabeamt may, on the application of the con- tracting authority, also determine whether an applicant or tenderer who (3) If the contract has already been has been eliminated would have had awarded, the Bundesvergabeamt shall, any serious chance of being awarded with due regard for the conditions set the contract even if this Federal Law out in subparagraph 1, determine only and the regulations made hereunder whether or not it is unlawful as had been complied with.' alleged.'

14. Paragraph 117(1) and (3) of the 15. Paragraph 122(1) of the BVergG stipu- BVergG stipulates: lates that 'if this Federal Law or the regulations made hereunder are culpably infringed by the departments of a contract- ing authority, an unsuccessful tenderer shall be entitled to claim compensation for the '(1) A decision taken by the contracting cost of submitting the tender and the other authority during a contract award costs associated with participation in the

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contract award procedure from the con- the prohibited act or omission. The tracting authority to which the conduct of penalty threatened shall be imposed the bodies of the awarding department immediately the first time the prohib- must be ascribed.' ited act is committed, or once the period allowed for the act required to be done has expired without that act having been done. At the same time, a penalty, on each occasion more severe than the previous, shall be threatened 16. Under Paragraph 125(2) of the BVergG for repetition or for further delay. As a claim for damages, which must be lodged soon as the obligation has been per- with a civil court, is admissible only if the formed, a penalty that has been threa- Bundesvergabeamt has previously reached tened shall not be imposed. a conclusion within the meaning of Para- graph 113(3). This conclusion is binding on the court applied to and on the parties to the proceedings before the Bundesverga- beamt. (3) In any individual case, the penalty shall not exceed ATS 10 000 or imprison- ment for longer than four weeks.

17. Paragraph 5 of the Verwaltungsvoll- streckungsgesetz (Law on Enforcement of Administrative Measures) stipulates: (4) Imposition of a penalty by way of fines is also permissible against legal per- sons, partnerships governed by com- m e r c i a l law and r e g i s t e r e d associations, except for bodies gov- erned by public law.' '(1) Where, due to its particular features, an obligation to permit something to be done, not to do something, or to do something cannot be performed by a third party, it shall be enforced by the authority responsible for enforcement 18. Paragraph 879 of the Allgemein Bür- requiring the person subject to the gerliches Gesetzbuch (General Civil Code) obligation to perform it on pain of (ABGB) reads as follows: fines or imprisonment.

'(1) A contract which is contrary to a (2) Enforcement shall be initiated by statutory prohibition or is immoral threatening to impose the penalty for shall be void.

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(2) In particular, the following contracts 20. On 22 February 2000, the Hauptver- shall be void: band decided to invite five consortia to submit tenders and to eliminate a sixth consortium. Point 1.9 of the tender docu- ments of 21 September 1999 and Point 1.8 of the invitation to tender documents of 15 March 2000 entitled 'Invitation to Tender' provided the following as regards subcon- ...' tracting: 'A maximum of 30% of the services may be subcontracted, provided that the characteristic parts of the service, namely, project management, system design, development, construction, delivery and operation of the central components of the system that are specific to the project, development, delivery and management of the life-cycle of the cards and development and delivery of the terminals remain with the tenderer or consortium.' III— Facts and procedural context

A — Facts of the case and proceedings before the national authorities 21. According to the contracting authority, as is evident from the order for reference, that condition was imposed as a criterion of reliability for the purpose of ensuring that the services supplied would be free of technical errors, because if the card suppli- 19. On 21 September 1999, in the Supple- ers were personally liable, they would have ment to the Official Journal of the Eur- a greater incentive to supply a service free opean Communities, the Hauptverband of errors and the contracting authority announced a two-stage contract award would have greater influence. procedure which it intended to conduct for the award of a contract to design, plan and construct a smart-card-based electronic data-processing (EDP) system, including the Austria-wide delivery, initialisation, perso- nalisation, distribution and disposal of cards, delivery, installation and full-service maintenance of terminals, and support for EDP system operations, a call centre, card management and other services necessary 22. Austria Card, a card supply company, for the operation of the system. which was to supply the part of the service I - 2562

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involving 'card delivery' in each case, was a 25. By notice of 19 March 2001, the member of three of the four consortia Bundesvergabeamt (Eighth Chamber) dis- which actually submitted tenders (including missed all the applications as being inad- Siemens and ARGE Telekom). The only missible on the ground that they lacked consortium in which Austria Card was not substance. In support of its decision the involved was formed by the firms EDS/ Bundesvergabeamt stated that the appli- ORGA. cants' tenders had had to be eliminated by the contracting authority in accordance with Paragraph 52(1 )(9) of the BVergG because Austria Card was a member of the three consortia concerned. The exchange of information thereby made possible and the negotiations which Austria Card necessarily had to conduct with the three consortia on the form of the tenders were to be regarded as constituting agreements between ten- 23. By letter of 18 December 2000, the derers inconsistent with the principle of fair Hauptverband, as the contracting author- competition. ity, notified three consortia of tenderers pursuant to Paragraph 53a of the BVergG that it intended to award the contract to EDS/ORGA.

26. The pleadings reveal that this decision by the Bundesvergabeamt was annulled by judgment of the Verfassungsgerichtshof (Constitutional Court) of 12 June 2001 on the ground that the constitutional right of the three consortia to proceedings in a court of law had been infringed. Before taking its decision, the Bundesvergabeamt had 24. The consortia that were not to be omitted to submit to the Court for a awarded the contract thereupon requested preliminary ruling a question on whether the Bundesvergabekontrollkommission a tenderer whose tender had not been (Federal Procurement Review Commission) eliminated by the contracting authority to carry out arbitration proceedings. The could be refused his right to bring proceed- latter refused to carry out arbitration ings before the competent national author- proceedings in one case and attempted, ity. unsuccessfully, to reach an amicable settle- ment in the other two cases. The three unsuccessful consortia then lodged review applications with the Bundesvergabeamt. The applications sought, primarily, the setting aside of the contracting authority's 27. On 28 and 29 March 2001, Debis, the decision to award the contract to the EDS/ third unsuccessful consortium, and ARGE ORGA consortium. Alternatively, they Telekom again instituted, consecutively, requested that the Hauptverband be review proceedings before the Bundesver- ordered to cancel the invitation to tender. gabeamt. They applied for annulment of the

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Hauptverband's decision not to cancel the March 2000. It excluded the possibility of invitation to tender and for interim mea- the subcontracting of parts of the provision sures to prohibit the contracting authority of services in excess of 30% of the total from awarding the contract either for a contract and, in all cases, of all typical period of at least two months from contractual services, especially the delivery submission of the application (Debis) or and management of the life-cycle of the until the Bundesvergabeamt had reached its cards. This had forced the applicants to decision (ARGE Telekom). include Austria Card as a member of the consortia which they had formed. Had it not been for the conditions laid down by Point 1.8 of the invitation to tender, the applicants could have relied on a subcon- tractor. In their opinion this requirement was inconsistent with Community law. 28. In response to these applications the They referred to the Court's judgment of Bundesvergabeamt adopted an interim 2 December 1999 in Holst Italia. 4This measure by notice of 5 April 2001 prohibit- showed that it must be possible to have the ing the award of the contract until 20 April service which was the subject of the 2001. invitation to tender performed by suitable third parties.

29. In their applications Debis and ARGE Telekom presented arguments based on both national and Community law in 30. By notice of 20 April 2001, the support of their position that the invitation Bundesvergabeamt (Ninth Chamber) to tender was unlawful. They maintained granted the applications of Debis and that the invitation to tender should be ARGE Telekom and, in accordance with cancelled because it followed from the Paragraph 113(2), No 2, of the BVergG Bundesvergabeamt's decision of 19 March declared void the Hauptverband's decision 2001 that only one undertaking still quali- not to cancel the invitation to tender. In fied for the award of the contract. After all, support of its decision, the Bundesverga- if the tenders submitted by Siemens, ARGE beamt stated that the invitation to tender Telekom and Debis could be eliminated had to be cancelled because it contained a under Paragraph 52(1) of the BVergG on substantially unlawful provision. Specifi- the ground that they infringed the principle cally, the Hauptverband's prohibition of of fair competition, it followed from the subcontracting infringed the tenderer's provisions of Paragraph 55(2) and (3) of right under Community law to rely on the BVergG that the invitation to tender subcontractors' capacity in order to prove had to be cancelled, since only one tenderer its own capacity, as interpreted by the (EDS/ORGA) remained. The invitation to Court in Holst Italia. 5 tender was, moreover, inconsistent with Community law, since an inadmissible standard of quality had been established 4 — Case C-176/98 [1999] ECR I-8607. in Point 1.8 of the invitation to tender of 15 5 — Cited in footnote 4.

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31. Despite this notice, the Hauptverband EDS/ORGA. Siemens took the view that it decided on 23 April 2001 to award the followed from the annulment of the Haupt- contract to EDS/ORGA without delay, as a verband's decision not to cancel the con- result of which the contract was concluded. tract award procedure announced in 1999 The interim measures adopted by notice of that its decision to award the contract was 5 April 2001 had expired on 20 April 2001 unlawful because it concerned a second, and, notwithstanding an application to this uhpublicised contract award procedure. It effect, had not been extended. The Bundes- also applied for interim measures. That vergabeamt's notice of 20 April 2001 application was dismissed by the Bundes- merely made a statement about 'setting vergabeamt on 11 May 2001, a decision on aside a failure to cancel', which is difficult the other applications being reserved. to understand. From this the Hauptverband deduced that it had not been decided in a judicially compelling way that its own decision to award the contract to the lowest bidder was not valid or had been set aside.

34. On 17 May 2001 ARGE Telekom similarly applied for interim measures and for the annulment of various decisions 32. The Hauptverband also decided to taken by the Hauptverband in connection challenge the Bundesvergabeamt's decision with its decision not to cancel the contract of 20 April 2001 before the Verfassungs- award procedure. gerichtshof. The documents relating to the case show that the Verfassungsgerichtshof first dismissed, by order of 22 May 2001, the application to suspend the Bundesver- gabeamt's decision and then, by judgment of 2 March 2002, annulled that decision.

35. On 18 May 2001 Siemens again applied for interim measures and for the annulment of the Hauptverband's decisions not to cancel the contract award procedure, 33. On 30 April 2001 Siemens initiated a to award the contract to EDS/ORGA, to review procedure before the Bundesverga- issue a letter of award to EDS/ORGA and beamt seeking the setting aside of various to conclude the contract with this consor- decisions taken by the Hauptverband relat- tium without first validly announcing the ing to the decision to award the contract to award decision.

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36. By decision of 9 July 2001, the authority, the contract award proce- Bundesvergabeamt dismissed ARGE Tele- dure is automatically terminated by the kom's and Siemens' applications for interim national review body's decision, with- measures and otherwise reserved its deci- out the need for any further act by the sion. contracting authority?

37. The Bundesvergabeamt (Ninth Cham- ber) held that a decision on Siemens' applications of 30 April and 18 May 2001 and ARGE Telekom's application of 17 May 2001 required a more detailed inter- pretation of a number of provisions of Directive 89/665. By order of 27 July 2001, it therefore submitted the following ques- 2. Is Directive 89/665, in particular Arti- tions for a preliminary ruling. cle 2(7) thereof, if necessary in con- junction with Council Directive 92/50, in particular Articles 25 and 32(2)(c) thereof, or any other provisions of Community law, in particular having regard to the effet utile doctrine relat- ing to the interpretation of Community law, to be construed as meaning that a provision in an invitation to tender B — The questions submitted for a pre- which prohibits subcontracting mate- liminary ruling and the related explanations rial parts of the service concerned and, contrary to the case-law of the Court of Justice, in particular Case C-176/9 8 Hoist Italia [1999] ECR I-8607, pre- vents the tenderer from using his '1. Is Council Directive 89/665, and in contract with his subcontractor to particular Article 2(1)(b) thereof, if prove that the services of a third party necessary in conjunction with Article are actually available to him and which 2(7) thereof, to be interpreted as mean- thus deprives him of his right to prove ing that the legal effect of a decision his own capability by relying on the taken by a national review body within services of a third party or to prove the meaning of Article 2(8) of Directive that he actually has available a third 89/665 relating to the setting aside of a party's services, is so clearly contrary contracting authority's decision not to to Community law that a contract cancel a contract award procedure is concluded on the basis of such an that if national law does not provide invitation to tender is to be regarded as any basis for the effective and compul- invalid, in particular where national sory enforcement of the review body's law in any case provides that illegal decision against the contracting contracts are invalid?

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3. Is Directive 89/665, in particular Arti- contracting authority to ensure that the cle 2(7) thereof, or any other provision unlawful decision is set aside, even of Community law, in particular hav- though national law authorises the ing regard to the effet utile doctrine review body to issue only non-compul- relating to the interpretation of Com- sory, non-enforceable orders to set munity law, to be construed as mean- aside contracting authorities' decisions ing that a contract concluded contrary in tenderers' applications for review to a decision by a national review body within the meaning of Article 1(1) of within the meaning of Article 2(8) of Directive 89/665? Directive 89/665 relating to the setting aside of a contract authority's decision not to cancel a contract award proce- dure is invalid, in particular where national law in any case provides that immoral or illegal contracts are void but does not provide any basis for the effective and compulsory enforcement of the review body's decision against the contracting authority?

4b. If Question 4a is answered in the affirmative: does Article 2(7) of Direc- tive 89/665, if necessary in conjunction with other provisions of Community 4a. Is Directive 89/665, in particular Arti- law, give the review body the power in cle 2(1 )(b) thereof, if necessary in such a case to threaten contracting conjunction with Article 2(7), to be authorities and the members of their interpreted as meaning that where executive organs with, and to impose national law does not otherwise pro- on them, such fines or fines and vide any basis for the effective and imprisonment by way of coercive compulsory enforcement of the review penalties as are necessary to enforce body's decision against the contracting their orders and are calculated in authority, the review body has, by accordance with judicial discretion, virtue of the direct application of where the contracting authorities and Article 2(1 )(b) in conjunction with the members of their executive organs Article 2(7), the power to issue a do not comply with the orders issued compulsory, enforceable order to the by the review body?'

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38. In its order for reference the Bundes- that every tenderer is entitled to rely on vergabeamt gives a detailed explanation of subcontractors to furnish evidence of tech- the above questions. The main elements of nical capability if he can prove that their this explanation can be summarised as services are actually available to him. The follows: Bundesvergabeamt therefore takes the view that it is entitled to assume that a provision relating to the tender requirements which largely excludes any such reliance on subcontractors from the outset is incon- sistent with Community law and that the contract award procedure in which such a condition is imposed may not be carried through to its end, but must be cancelled.

39. To substantiate the first question, the Bundesvergabeamt points out inter alia that its decisions under Paragraph 113(2)(2) of the BVergG do not comprise any directions to the contracting authority that are enforceable at the instance of the successful applicant. In this respect the powers of the Bundesvergabeamt differ from those of As Community law relating to public similar national authorities in the areas of procurement does not contain any provi- commercial law, construction law and the sions that give an explicit answer to the law on water resources, for example. Those question as to the extent to which unlawful authorities do have the power to issue awards result in the invalidity of the enforceable instructions. This means that contracts concluded on that basis, the interested parties are in a far weaker legal question as to the validity of the contract position under public procurement law can be regarded as one of national law. than parties in other areas of law. The Bundesvergabeamt wonders whether this outcome of national legislation is compa- tible with the requirements of Community law, as set out in particular in Article 2(7) of Directive 89/665.

Weighed against the principle of the effet utile of Community law, however, such a conclusion would be unsatisfactory. A contracting authority which did not abide by the provisions of Community law or comply with the review body's decisions might, after all, frustrate the achievement of the objectives of Community law without 40. In the case of Question 2 the Bundes- fear of any sanction where, as in the present vergabeamt points out that, in accordance case, national law could not guarantee with the Court's case-law, it proceeded in compulsory enforcement of the review its decision of 20 April 2001 on the basis body's decisions.

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In this context the Bundesvergabeamt con- with the associated implications for the siders it appropriate to determine whether a validity of the contract. contract established on the basis of a contract award procedure in which provi- sions of Community law have been infringed must be considered invalid in civil law on the ground that it is unlawful or immoral. 43. In the case of Questions 4a and 4b the Bundesvergabeamt explains that national law does not ensure the effective enforce- ment of decisions made by review bodies because it does not provide for the compul- sory enforcement of the setting aside of a contracting authority's decision. Although 41. In connection with the first two ques- Article 2(1)(b) of Directive 89/665 gives the tions the Bundesvergabeamt also points out Member States considerable scope in deter- that, if the contracts concluded had to be mining the powers to be conferred on considered invalid, it could still set aside review bodies, if the result is that the decisions by the contracting authority (and, provisions of Community public procure- if necessary, take other measures if the ment law have insufficient effet utile, the Court were to answer Questions 4a and 4b Bundesvergabeamt regards the possibility in the affirmative) because, if the conclusion of the review body directly exercising the of the contract were invalid, the award powers provided for in the Directive as must likewise be regarded as invalid. being worthy of consideration. The Bun- According to the Bundesvergabeamt, a desvergabeamt therefore wonders whether more detailed interpretation of Community the administrative means of enforcement law is therefore needed to determine the for which national law provides are equal powers of the national court or tribunal to to the task of ensuring effective compliance decide on the validity of the award and of with Community law. the contract concluded on that basis.

42. In the case of Question 3 the Bundes- IV — Proceedings before the Court vergabeamt states that the Hauptverband, the contracting authority, not only disre- garded the substantive provisions of Com- munity public procurement law but also deliberately departed from the decision of the national review body within the mean- ing of Article 1(3) of Directive 89/665. Such 44. In the order for reference the Bundes- an attitude should be regarded as immoral, vergabeamt requests that the accelerated

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procedure for which Article 104a of the V — Assessment Rules of Procedure of the Court of Justice provides be applied to the questions referred. It argues that an accelerated procedure might prevent the contracting authority from frustrating the enforcement of Community law, as interpreted by the Court, by establishing a fait accompli. If the questions referred were answered in the A — Preliminary observations affirmative, a rapid decision could prevent major losses since the performance of the contract between the Hauptverband and EDS/ORGA had not yet commenced at the time when the order for reference was issued. 47. The background to the order for reference described in depth in points 19 to 37 above and the Bundesvergabeamt's comments on the questions it has submitted prompt a number of preliminary observa- tions.

45. By order of 13 September 2001 the President of the Court dismissed this request, on the ground that the circum- stances described by the Bundesvergabeamt did not indicate any exceptionally urgent 48. Once the Hauptverband, the contract- need for answers to the questions. ing authority, had made it known to the remaining applicants in the contract award procedure pursuant to Paragraph 53 of the BVergG that it intended to award the contract to EDS/ORGA, three groups initiated proceedings before the Bundesver- gabeamt:

46. The request for a preliminary ruling was received at the Registry of the Court on 9 August 2001. ARGE Telekom, the Hauptverband, EDS/ORGA, the Austrian Government and the Commission sub- mitted written observations pursuant to (1) In a first set of proceedings the Article 20 of the EC Statute of the Court applicants in the main action sought of Justice. At the hearing on 18 September the annulment of the Hauptverband's 2003 the Hauptverband, the Austrian decision to award the contract to EDS/ Government and the Commission ORGA and the cancellation of the explained their positions at greater length. contract award procedure. They were I - 2570

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unsuccessful in this, their application thus ignoring the Bundesvergabeamt's being declared inadmissible by order of order of 20 April 2001 that the 19 March 2001. contract award procedure be cancelled. In the course of this third set of proceedings the Bundesvergabeamt raised the questions submitted for a preliminary ruling. From the order for reference it can be deduced that the applicants in these proceedings base (2) In a second set of proceedings the their demands mainly on two argu- unsuccessful applicants called on the ments: Bundesvergabeamt inter alia to set aside the — notional — decision of the Hauptverband, the contracting authority, not to cancel the contract award procedure. They were forced to take this course because, as the Haupt- verband and the Austrian Government have emphasised in their written and — the decision of 18 December 2000 oral observations, the decision to to award the contract was invalid award the contract itself could not be from the outset because the so- challenged before the Bundesverga- called Smart Card Committee had beamt a second time. The unsuccessful not yet given the approval required applicants succeeded with this second for the award of the contract; demand. By an interim measure of 5 April 2001 the Hauptverband was prohibited until 20 April 2001 from proceeding to award the contract. By order of 20 April 2001 the Bundesver- gabeamt then set aside the notional decision not to cancel the contract — the decisions that led to the con- award procedure. This order did not, clusion of the contract between the however, prevent the conclusion of the Hauptverband and EDS/ORGA contract between the contracting were all void because they were authority and EDS/ORGA a few days taken in the context of an invalid later. contract award procedure.

(3) There then followed a third set of proceedings, in which the unsuccessful 49. There is no denying that a contract was applicants in essence sought the annul- concluded between the Hauptverband and ment of the decisions taken by the EDS/ORGA, bringing to an end the second Hauptverband after its decision to phase of the contract award procedure that select EDS/ORGA as the 'best bidder', had begun on 22 February 2000. Under

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Austrian law, only a civil court is competent 53. In the light of this and other factors the to assess the validity of this contract and admissibility of the questions referred any claim for damages in connection there- should first be appraised. with.

50. From the contents of the questions referred, read in conjunction with the B — Admissibility detailed explanation relating thereto, it can be deduced that the Bundesvergabeamt doubts that the powers conferred on it are sufficient to ensure the effective application of Directive 89/665, since a contract award procedure which it considers contrary to 54. The Hauptverband, the Austrian Gov- Community law has none the less led to the ernment and the Commission have con- award and conclusion of a significant tended in their written observations and contract. their oral statements at the hearing, albeit for widely different reasons, that the ques- tions are not admissible.

51. To the extent to which this background to the questions has prompted the Bundes- vergabeamt, implicitly on some occasions, 55. The Commission doubts that the Bun- more explicitly on others, to question the desvergabeamt is a court or tribunal, since compatibility as such of the legal system it itself recognises in the order for reference underlying Austrian public procurement that its decision does not contain 'any law with Directive 89/665, it exceeds the recommendations to the contracting limits imposed by Article 234 EC on the authority that are capable of implementa- preliminary ruling procedure, which tion'. It therefore asks whether the ques- restricts cooperation between the national tions submitted by the Bundesvergabeamt courts and the Court of Justice to the are admissible, having regard to the Court's interpretation of Community law for the case-law and specifically to the judgments benefit of a decision in the main action. in Victoria Film 6 and Salzmann, 7accord- ing to which a national court may refer a question to the Court under Article 234 EC only if there is a case pending before it and if it is called upon to give judgment in proceedings intended to lead to a decision 52. It is therefore necessary to examine of a judicial nature. whether the Court's answers to the ques- tions referred to it for a preliminary ruling can be beneficial to a decision in the main 6 — Case C-134/97 [1998] ECR I-7023, paragraph 14. action. 7 — Case C-178/99 [2001] ECR I-4421, paragraph 14.

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56. The Austrian Government takes the authority to assess the validity or invalidity view that the questions are inadmissible of a contract governed by civil law which because they are so worded as to be had been concluded after the expiry of the incomprehensible to those who are not contract award procedure. familiar with Austrian formal and substan- tive public procurement law. It contends that a referring national court or tribunal must be expected to phrase complex and fundamental questions concerning the structure of the national legal order in such a way that they are also clear and 59. At the hearing the Austrian Govern- comprehensible to those who are not ment and the Hauptverband also referred familiar with the national legal order in to the implications of the Verfassungsge- question. richtshof's judgment of 2 March 2002 for the admissibility of the request for a preliminary ruling. That judgment annulled the Bundesvergabeamt's decision of 20 April 2001. The Verfassungsgerichtshof held that it was logically impossible for a decision to be set aside if that decision called for something not to be done. The 57. The Hauptverband considers the ques- application to that effect from the consortia tions to be inadmissible because, in its view, of tenderers which had not qualified for the the order for reference gives an incomplete award of the contract had therefore had to description of the facts in the main action. be declared inadmissible. As the Bundes- In the present case the order concerns not vergabeamt had assessed the case in ques- one, but three different basic sets of tion in response to an inadmissible applica- proceedings. Furthermore, the Bundesver- tion, it had arrogated a power to which it gabeamt omitted to refer in its order for was not entitled. The Hauptverband's right reference to the proceedings pending before to a hearing before a court of law had the Verfassungsgerichtshof and the Han- therefore been infringed. delsgericht (Commercial Court) in Vienna.

60. The Austrian Government and the 58. Nor was the Bundesvergabeamt com- Hauptverband contend that, as a result of petent to submit questions for a preliminary this judgment by the Verfassungsgerichts- ruling because after its decision of 19 hof, the relevance to the main action of the March 2001 an appeal against the decision questions referred to the Court is at least awarding the contract was no longer partly lost, namely to the extent that they possible. The Bundesvergabeamt was there- explicitly or implicitly concern the Bundes- fore no longer entitled to assess the validity vergabeamt's decision of 20 April 2001, the of that decision or the decisions which the questions thus becoming hypothetical. Hauptverband had subsequently taken. According to the Court's case-law, this Nor did the Bundesvergabeamt have any would make them inadmissible. This would

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certainly be true of Question 1 and perhaps with the questions referred, although the of Questions 3, 4a and 4b too. wording of those questions is not prima facie always clear. In raising this objection, which refers primarily to national law, the Austrian Government appears, moreover, to be ignoring the fact that the procedure for which Article 234 EC provides concerns the interpretation and validity not of national law but of Community law and 61. The answer with respect to the Com- especially, in the present case, the inter- mission's first objection to the admissibility pretation of a number of provisions of of the questions can be brief. Very recently, Directives 89/665 and 92/50. 9 in the judgment in GAT, 8 the Court explicitly ruled that the decisions of the Bundesvergabeamt are indeed of a judicial nature and that the Court is therefore competent to answer questions submitted by that body. The Court pointed out in this context that it is evident from Paragraph 125(2) of the BVergG that an assessment by the Bundesvergabeamt under Paragraph 113(3) of the BVergG is not only a requirement for the admissibility of any claim for damages made to a civil court for the culpable infringement of the aforemen- tioned provisions, but is also binding both 63. The third objection, raised by the on the parties to the proceedings before the Hauptverband, to the admissibility of the Bundesvergabeamt and on the civil court questions is more persuasive, partly in the concerned. Consequently, the Court is light of my preliminary comments in points competent to answer questions referred to 48 to 53 above. Although, according to it by the Bundesvergabeamt. settled case-law of the Court, it is for the national courts to determine whether the order for reference accords with national formal and substantive law 10 and it is left to them to identify 11 and assess 12 assess the relevant facts, this authority is not unrestricted. If it can be deduced from the

62. Nor, it seems to me, does the Austrian Government's second objection to admissi- 9 — See, inter alia, Case 63/76 Inzirillo [1976] ECR 2057, paragraph 6. bility serve any purpose. It can indeed be 10 — See, inter alia, Case 104/77 Oehlschläger[1978] ECR 791, deduced from the detailed order for refer- paragraph 4, and Case C-181/96 Wilkens [1999] ECR ence and the explanation it contains what I-399, paragraph 33. 11 — See, inter alia, Joined Cases C-175/98 and C-177/98 the Bundesvergabeamt is seeking to achieve Lirussi and Bizzaro [1999] ECR I-6881, paragraphs 37 and 38, and Case C-390/99 Canal Satélite Digital [2002] ECR I-607, paragraph 18, and Case C-167/01 Inspire Art [2003] ECR I-10155, paragraph 43. 12 — See, inter alia, Case C-343/90 Lourenço Dias [1992] ECR 8 — Case C-315/01 [2003] ECR I-6351, paragraphs 25 to 29. I-4673, paragraph 14, and Canal Satélite Digital, cited in footnote 11, paragraph 43. I - 2574

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order for reference, from the court docu- gabeamt but a civil court which is compe- ments forwarded and from written and oral tent to assess the legal validity of the observations that the answers to the ques- contract concluded on 23 April 2002 tions referred can clearly have no influence between the Hauptverband and EDS/ on the outcome of the main action and that ORGA, the answers to the questions they are therefore of a hypothetical nature, referred cannot in principle make any they should, again according to settled case- contribution to the settlement of the main law of the Court, 13 be dismissed without a action. ruling.

64. In the light of the foregoing, it must 67. Under Austrian law the civil courts are therefore be examined whether the ques- competent to assess contracts concluded tions which the Bundesvergabeamt has after their award. In accordance with the submitted are relevant to the settlement of last sentence of Article 2(6) of Directive the main action. 89/665, Austrian law limits the powers of those courts to awarding damages to any person harmed by an infringement of the contract award requirements.

65. As I have already observed in points 48 to 51 above, the Hauptverband has con- cluded a contract with EDS/ORGA without abiding by the decision of the Bundesver- gabeamt in which the Hauptverband's — 68. Now that it appears to have been notional — decision not to cancel the established that in the situation underlying contract award procedure was set aside. In the main action the decision awarding the the main action the applicants now state contract taken by the contracting authority inter alia that the decisions by the Haupt- was not annulled by the Bundesvergabeamt verband which ultimately resulted in the and, to implement that decision, one or conclusions of the contract are all void more contracts were concluded as a result because they were taken in the context of of their award, it must be assumed that only an invalid contract award procedure. a civil court is competent to assess the contracts which have emerged from the contract award procedure here at issue.

66. Now that it has been determined that under Austrian law it is not the Bundesver-

69. In the light of the foregoing I take the 13 — Sec, inter aha. Case 244/80 Foglia v Novello [1981] ECR view that it must be assumed that the 3045, paragraph 21, Case C-451/99 CuraAnlagen [2002] LCR I-3193, paragraph 26, and Inspire An, cited in questions submitted by the Bundesverga- footnote 11, paragraph 47, beamt, which essentially ask whether the

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powers conferred on it in the BVergG 72. As is evident from the order for satisfy the minimum requirements set out reference, the Bundesvergabeamt has sub- in Article 2(7) of Directive 89/665, are mitted its questions primarily because its purely hypothetical. decision of 20 April 2001 setting aside the contracting authority's — notional — decision not to cancel the contract award procedure was not enforceable under Aus- trian law. This is quite obvious from the wording of Questions 1, 3, 4a and 4b. Now that the Verfassungsgerichtshof has annulled the decision of 20 April 2001 on the ground that the Bundesvergabeamt was not competent to take such a decision, the questions directly concerning this decision 70. The hypothetical nature of the ques- have no basis. They have thus become of a tions is, moreover, reflected in their content. purely hypothetical nature, even without Taken together, they contain, as I have the arguments advanced above in support already observed in point 51, an invitation of this view being considered. to the Court to weigh, in a context far removed from the actual legal dispute in the main action, the general system of legal protection for which the national contract award procedure provides against the applicable Community law. The Bundes- vergabeamt thereby overlooks the fact that the procedure set out in Article 234 EC charges the Court to contribute to the administration of justice in the Member States and not to give learned opinions on general or hypothetical questions. 14

73. Although Question 2 does not refer directly to the decision of 20 April 2001, it seems to me that this question too is affected by the ruling of the Verfassungs- gerichtshof referred to above. In substance, the statement of reasons for the — annulled — decision of 20 April 2001 was, after all, based on the assumption that the contract 71. As the final element in the assessment award procedure was invalid because it of the admissibility of the questions contained a contract award requirement referred, the consequences of the Verfas- which was contrary to Community law, as sungsgerichtshof's ruling of 2 March 2002 construed by the Court in Hoist Italia. 15 should be considered. However, that assumption is pivotal in

14 — Most recently, Inspire Art (cited in footnote 11), paragraph 45. 15 — Cited in footnote 4.

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Question 2. However correct it may be, the that it follows from the Court's ruling in Court does not need to consider it now that Hoist Italia 16 that the condition imposed by it forms part of a ruling by the Bundesver- Point 1.8 of the contract award require- gabeamt which cannot play any further ments of 15 March 2000 for permitting part in the main action. subcontractors' services is contrary to Community law.

74. In view of the foregoing I conclude that the questions referred to the Court by the Bundesvergabeamt in this case are not relevant to the resolution of the legal 77. Indeed, Directive 92/50, the directive dispute in the main action and so, being applicable to the contract award procedure purely hypothetical, must be declared inad- here at issue, does not contain any provi- missible. sion prohibiting subcontracting as such. It is clear from Article 25 of that directive that the contracting authority may ask the tenderer to indicate in his tender any share of the contract he may intend to subcon- tract to third parties. Article 32(2)(h) stipulates that evidence of the service provider's technical capability may be C — Substance furnished through an indication of the proportion of the contract which he may intend to subcontract, according to the nature, quantity and purpose of the services to be provided. 75. Merely in the alternative, if and in so far as the Court does not agree with my opinion that all the questions submitted are inadmissible and concludes that only those directly affected by the Verfassungsge- richtshof's ruling of 2 March 2002, that is to say, Questions 1, 3, 4a and 4b, are inadmissible, I will now consider Ques- 78. In the assessment of the admissibility of tion 2. a prohibition of subcontracting a distinc- tion must be made, as the Commission, the Austrian Government and the Hauptver- band have rightly observed, between such a prohibition where the suitability of tenders is being assessed and a prohibition in the 76. In this regard the Commission has observed, for good reason to my mind, that the question is based on the false premiss 16 — Cited in footnote 4.

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case of the performance of the contract which are necessary for performance of the once it has been awarded. contract...'.

79. The ruling of the Court in Hoist 80. I interpret this ruling as follows: Italia, 17 to which the Bundesvergabeamt potential applicants for a public works refers, concerned the assessment and selec- contract may not be eliminated on the tion phase of a contract award procedure. ground that they do not themselves have all the skills needed for the performance of the contract. Such a prohibition might result in the number of applicants being severely limited from the outset, especially in the case of large and technically complex In paragraph 26 of that judgment the Court contracts. This would mar the effect of ruled in this respect: 'From the object and Directive 92/50. However, to ensure that wording of those provisions, it follows that the contract, once awarded, is performed a party cannot be eliminated from a appropriately, the contracting authority procedure for the award of a public service may require that, where a tenderer relies contract solely on the ground that that on the skills of other entities, he vouch for party proposes, in order to carry out the the availability of their resources. contract, to use resources which are not its own but belong to one or more other entities.'

81. It is, however, evident from the word- ing of Point 1.8 of the contract award requirements, as referred to in point 20 of In paragraph 31 the Court rounds off its this Opinion, that this condition relates not reasoning by stating '... that Directive 92/50 to the tendering and selection phase of the is to be interpreted as permitting a service contract award procedure but to the phase provider to establish that it fulfils the in which the contract for the performance economic, financial and technical criteria of the works is concluded. for participation in a tendering procedure for the award of a public service contract by relying on the standing of other entities, regardless of the legal nature of the links which it has with them, provided that it is able to show that it actually has at its disposal the resources of those entities 82. During that phase a prohibition or restriction of subcontracting, by which the contracting authority seeks to prevent the 17 — Cited in footnote 4. performance of essential parts of the con-

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tract from being left to entities whose pretation of its case-law pass unchallenged. capacities and qualities it has been unable This is all the truer if it formed the basis of to assess during the contract award proce- the decision of the Bundesvergabeamt to dure, is not inconsistent with Directive which its questions refer and which may, 92/50. It is evident from the wording of for that and other reasons, make those Article 25 of that directive that it applies questions hypothetical. explicitly to the tendering and assessment phase of the contract award procedure. Article 25 provides for the contracting authority to have an insight into the capacities of the entities concerned, which is necessary for a correct assessment of the tenders submitted. From this it is impossible to deduce an argument for prohibiting subcontracting in the phase in which the contract on the performance of the work is concluded with the selected tenderer after the contract has been awarded. 85. Furthermore, leaving aside the substan- tive premiss of the decision of 20 April and assuming that the invitation to tender included a condition inconsistent with Community law or continued despite a notice issued in view of this inconsistency by a review body within the meaning of Article 2(8) of Directive 89/665, an assess- 83. It follows from this that the premiss on ment should be made in accordance with which the Bundesvergabeamt's decision of applicable national law of the validity and 20 April 2001 is based, namely that Point possibly the cancellation of the contracts 1.8 of the contract award requirements is already concluded. contrary to Community law and that, therefore, the contract award procedure should be cancelled in its entirety, is in itself incorrect.

84. Although the Bundesvergabeamt has 86. This view is endorsed inter alia in the not asked in its questions for an assessment Court's judgment in Alcatel 19 and in the of its interpretation of the Court's ruling in Opinion of Advocate General Alber in Holst Italia, 18 it is my view that the Court Commission v Austria. 20 can hardly let an obviously incorrect inter-

19 —Case C-81/98 Alcatel Anuria and Others [1999] ECR I-7671, paragraph 49. 18 — Cited i nfoomore 4. 20 — Case C-328/96 [1999] ECR I-7479. point 48.

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VT — Conclusion

87. In view of the foregoing I propose that the Court should:

— declare the questions referred to the Court in the Bundesvergabeamt's order for reference of 11 July 2001 inadmissible;

— in the alternative, declare Questions 1, 3, 4a and 4b inadmissible and answer Question 2 as follows:

If there has been a contract award procedure which included a tender requirement inconsistent with Community law, or if the contract has been awarded despite a decision issued in view of this inconsistency by a review body within the meaning of Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts, the validity and possible cancellation of the contracts already concluded should be assessed in accordance with applicable national law.

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