Para 1.10.3 - Bidder Registration | KartavyaDesk
Original Rule Text
c) DPIIT has laid down the method of application, format etc. for such bidders as covered by the Order. d) On receipt of an application seeking registration from a bidder covered by sub-para 2-a) and 2-b) above, the Competent Authority shall first seek political and security clearances from the Ministry of External Affairs and Ministry of Home Affairs, as per guidelines issued from time to time. registration shall not be given unless political and security clearance have both been received. e) The Ministry of External Affairs and Ministry of Home Affairs may issue guidelines for internal use regarding the procedure for scrutiny of such application by them. f) The decision of the Competent Authority, to register such bidder may be for all kinds of tenders or for a specified type(s) of goods or services and may be for a specified or unspecified duration of time, as deemed fit. The decision of the Competent Authority shall be final. g) Registration granted by the Competent Authority of the Government of India shall be valid not only for procurement by the Central Government and its bodies specified in sub-para 3 above, but also for procurement by State Governments and their agencies/ public enterprises etc. No fresh registration at the State level shall be required. h) The Competent Authority is empowered to cancel the registration already granted if it determines that there is sufficient cause. Such cancellation by itself, however, will not affect the execution of contracts already awarded. Pending cancellation, it may also suspend the registration of a bidder, and the bidder shall not be eligible to bid in any further tenders during the period of suspension. i) For national security reasons, the Competent Authority shall not be required to give reasons for rejection/cancellation of registration of a bidder.
What This Means
Para 1.10.3 of the Manual for Procurement of Consultancy Services outlines the registration process for bidders who might be subject to restrictions based on government orders, particularly those related to national security or political considerations. If a company needs to register, the government agency in charge must first get security and political clearances from the Ministry of External Affairs (MEA) and the Ministry of Home Affairs (MHA). Registration won't be granted unless both clearances are received. MEA and MHA can set their own internal procedures for reviewing these applications.
Once a bidder is registered, that registration is valid for all central government procurements, as well as for state government procurements. This means a company doesn't need to register separately in each state. The government agency can decide to limit the registration to specific types of services or set a time limit on the registration. The agency also has the power to cancel a registration if there's a good reason, but cancelling a registration doesn't affect existing contracts. They can also temporarily suspend a registration, preventing the company from bidding on new projects. Importantly, for national security reasons, the government doesn't have to explain why a registration was rejected or cancelled.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Bidders requiring registration need political and security clearance from MEA and MHA.
- •Registration granted by the central government is valid for both central and state government procurements.
- •The Competent Authority can limit, cancel, or suspend registration.
- •Cancellation of registration doesn't affect existing contracts.
- •The government is not required to provide reasons for rejection/cancellation of registration for national security reasons.
Practical Example
TechSolutions Inc., a company specializing in cybersecurity consulting, submits an application for registration to bid on government projects. As per Para 1.10.3, the Competent Authority forwards TechSolutions' application to the Ministry of External Affairs and the Ministry of Home Affairs for political and security clearances. After a thorough review, both ministries grant the necessary clearances. The Competent Authority then approves TechSolutions' registration for a period of three years, specifically for cybersecurity-related consultancy services.
Later, the Competent Authority receives credible information suggesting TechSolutions has compromised data security protocols. Based on this information, the Competent Authority suspends TechSolutions' registration, preventing them from bidding on new projects while an investigation is underway. However, TechSolutions continues to fulfill its obligations under an existing contract with the Ministry of Finance, as the suspension does not affect contracts already awarded.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if either the MEA or MHA denies security clearance?▼
Does a company need to register separately in each state?▼
Can a registration be cancelled?▼
What happens if a company's registration is suspended?▼
Is the Competent Authority required to provide reasons for rejecting a registration?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 1.10.3 of the Manual for Procurement of Consultancy Services, which of the following clearances are mandatory before granting registration to a bidder covered under sub-para 2-a) and 2-b)?
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