Abnormally Low Tenders

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Abnormally low tenders (A CN.9 WG.I WP.40 Add.1, paras.

abnormally high interest rates and violations of personal privacy will be vigorously rectified.

Proposed additions to article 34, to provide for the investigation of abnormally low tenders and rejection thereof

Views varied as to whether the provisions on abnormally low tenders should be included in the Model Law.

It was also noted that the Working Group should look at the problem with abnormally low tenders in a broader context of public policy since the submission of abnormally low tenders often involved criminal acts (e.g., money laundering) or illegal practices (e.g., non compliance with minimum wage or social security obligations).

When reviewing tenders, procuring entities, it was said, should be allowed to seek justification of prices if they suspected abnormally low tenders.

Katrina, a category 1 storm when it crossed Florida, roared to full life in the abnormally hot water of the Gulf of Mexico.

(d) A note concerning electronic reverse auctions and abnormally low tenders, including drafting materials (A CN.9 WG.I WP.40 and Add.1).

Proposed revisions to the Guide to Enactment text regarding article 34, to provide for the investigation of abnormally low tenders and rejection thereof

(h) To require price justification as described in paragraph cross refer to price justification paragraph above if an abnormally low tender is suspected

(k) To require all steps taken to address a possible abnormally low tender be adequately reflected in the record of the procurement proceedings.

The period of detention is abnormally long, varying from one week to six years, according to reports based on a survey of the prisoners.

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Finally, it was observed, many possible abnormally low tenders when closely examined would turn out to be non responsive tenders that would be rejected as such.

(a) The eastward shift of thunderstorm activity from Indonesia to the central Pacific can result in abnormally dry conditions over Northern Australia, Indonesia and the Philippines

It was also noted that the concerns regarding possible abuse of procedures designed to address abnormally low tenders could be met if safeguards ensuring transparency and clarity were put in place for example, if it were noted in the solicitation documents that a price realism analysis could be conducted should it be suspected that the tender price was abnormally low.

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(1) quinquies Enacting States may also wish to take some or all of the following steps so as to assist in the avoidance of abnormally low tenders.

Further, it was observed that although the subjectivity might be most apparent in international procurement, as what is an abnormally low price in one country may be perfectly normal in another, in the domestic procurement context such techniques as selling old stock below cost or below cost pricing to keep the workforce occupied were legitimate. Therefore, prices could be low but not abnormally low.

For the analysis of existing approaches for handling the risk of abnormally low prices, including in ERAs, see a note by the Secretariat (A CN.9 WG.I WP.36).

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As regards abnormally low tenders (ALTs), the Working Group agreed to continue its consideration of new provisions to be incorporated in the Model Law enabling the identification of possible ALTs.

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