HEUKING successfully represents German federal states in payment card contract award proceedings before Karlsruhe Public Procurement Chamber

August, 2024 - Germany

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HEUKING successfully represents German federal states in payment card contract award proceedings before Karlsruhe Public Procurement Chamber

 

A HEUKING team led by Dr Martin Schellenberg successfully represented several German federal states in the payment card contract award proceedings before the Karlsruhe Public Procurement Chamber.

 

The “payment card” scheme has become a focal point in the ongoing political debates surrounding asylum policy. In the future, migrants are expected to receive a payment card instead of cash. This card allows them to make purchases but it cannot be used to transfer money abroad.

 

In February, all German federal states, except for Mecklenburg-Western Pomerania and Bavaria, collectively issued a EU-wide so-called ‘contract notice’. Thereby they invited companies to submit competitive bids for the delivery of the cards and corresponding services. On behalf of the states, Dataport AöR, the national IT service provider for the northern federal states, is carrying out the award procedure.

 

In July, the states decided to award the contract to the bidder who offered the best value for money. However, the decision cannot yet be implemented as at least one unsuccessful bidder submitted an application for review (‘Nachprüfungsantrag’) with the Karlsruhe Public Procurement Chamber.

 

On August 13, 2024, the Procurement Chamber ruled in favour of the federal states. Following a thorough review of the tender and bidding documents and a hearing of oral arguments, the Chamber affirmed that the proceedings had been conducted lawfully. The unsuccessful bidders, represented by well-established law firms, may now appeal the Chamber’s decision to the Karlsruhe Higher Regional Court.

 

Representing Baden-Württemberg, Berlin, Brandenburg, Bremen, Hamburg, Hesse, Lower Saxony, North Rhine-Westphalia, Rhineland-Palatinate, Saarland, Saxony, Saxony-Anhalt, Schleswig-Holstein, and Thuringia:

HEUKING:

Dr Martin Schellenberg (Lead, Public Procurement), Hamburg,

Dr André Hofmann, LL.M. (Payment Services Supervision), Frankfurt am Main,

Fabian Budde,

Marc Philip Greitens, B.A., LL.B.,

Nils Leonhard (all Public Procurement), all Hamburg

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