Transaction costs and reimbursement provisions

4  Bid & transaction costs: In some cases, such as this one, Departments may not be able to develop sufficient competition without reimbursing bid costs. If so, after conceding the principle of reimbursing losing bidders, they should take care to control the extent of reimbursement, generally excluding sunk costs. This should also include restricting any early distributions to shareholders, if disclosed, for example the success fees in this case.