ÖBB's contract award decision in favor of Bombardier was correct: The passenger transportation subsidiary of Österreichische Bundesbahnen had put out to international tender a framework agreement on the order of up to 300 local passenger trains with an estimated procurement volume of almost two billion euros. The aircraft and railway manufacturer Bombardier had been awarded the contract in the best bidding procedure (Bestbieterverfahren) on October 6, 2016. The unsuccessful competitor Stadler Rail objected to the decision before the Federal Administrative Court (Bundesverwaltungsgericht). On Friday, December 2, 2016, the award division, chaired by Hubert Reisner, found that the awarding to Bombardier was correct.

Identified as the best bidder in the award procedure, Bombardier was successfully represented by the international law firm Baker McKenzie in the review proceedings, its team being led by procurement law expert Franz Josef Arztmann.

The review proceedings focused on the question of whether the customer should have carried out an "in-depth tender pricing evaluation", given Bombardier's more favorable maintenance costs. "Within the scope of the proceedings, we were able to prove that the maintenance costs are in line with the market conditions, that there was no doubt as to the adequacy of the prices, and that Bombardier had, in fact, submitted the most favorable tender," says Franz Josef Arztmann.

It is still not clear whether Stadler will file an appeal against the administrative court's decision.

Legal team advising Bombardier Transportation

Lead: Public Law: Dr. Franz Josef Arztmann, MBA (Senior Associate, Vienna)

Other attorneys involved: Public Law: Mag. Sandra Seldte (Junior Associate, Vienna)

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