Para 5.4.3 - Auto-Extension of Bids | KartavyaDesk
Original Rule Text
2. Auto-Extension of Bids – in case of lack of Response: The eProcurement portal/ GeM should not provide anybody, including the Procuring Entity, with the bid count before the tender opening time, even at their request. The eProcurement portal/ GeM may permit Procuring Entity to input minimum number of bids considered sufficient and pre-specified number of days for automatic extension of bid opening (ordinarily not less than 7 days) at the time of tender upload. The system shall declare in the tender details that in case of low competition (without specifying the number), the tender closing time shall be automatically extended by specified number of days. If bids received till the bid opening time are less than the specified minimum bids, the system should automatically extend the tender opening by specified number of days without seeking any input from or sharing any information with anyone, including the Procuring Entity. Purchaser and bidders shall only be informed that due to less competition, the tender closing time has been extended up to (date and time). However, this automatic extension of bid opening shall be done only once, not repeatedly. If a Procuring Entity wants to go ahead even with low competition (e.g., due to urgency), they may mention ‘one’ as minimum bid. So that if no bid is received, the tender is automatically extended, otherwise not. Procuring entity is free to cancel and retender the procurement after autoextension. GeM and eProcurement portals shall update their systems accordingly.
What This Means
Para 5.4.3 of the Manual for Procurement of Consultancy Services deals with what happens when not enough bids are received for a tender. To ensure fair competition and prevent tenders from failing due to low response, the rule allows for an automatic extension of the bid submission deadline. This extension happens without anyone, including the government department issuing the tender, knowing how many bids have been received. The goal is to encourage more participation and get the best possible value for the government.
Essentially, the eProcurement portal (like GeM) is set up to automatically extend the deadline by a pre-determined number of days (usually at least 7) if the number of bids received by the initial deadline is below a minimum threshold set by the department. This extension happens only once. If, even after the extension, the response is still low, the department can either proceed with the bids they have or cancel the tender and re-tender. This rule affects both the government departments issuing tenders and the potential consultants who might be bidding on them.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •eProcurement portals cannot reveal the number of bids received before the tender opening time.
- •The system can be configured to automatically extend the bid submission deadline if the minimum required number of bids isn't met.
- •The automatic extension happens only once.
- •The procuring entity can set the minimum bid requirement to 'one' to ensure an automatic extension if no bids are received.
- •After the auto-extension, the procuring entity can still cancel and re-tender if desired.
Practical Example
The Ministry of Skill Development and Entrepreneurship (MSDE) issues a tender for consultancy services worth ₹50 lakhs for a new skill development program. They set the minimum number of bids required at '3' and the automatic extension period at '7 days'. When the initial deadline arrives, only two bids are received. The eProcurement system automatically extends the deadline by 7 days, informing all potential bidders that the closing time has been extended due to less competition.
After the 7-day extension, MSDE receives one more bid, bringing the total to three. They can now proceed with evaluating the three bids received. Alternatively, even with three bids, if MSDE feels the competition is still insufficient, they have the option to cancel the tender and re-tender with revised specifications or a wider outreach strategy.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why can't the procuring entity know the number of bids before the opening time?▼
What happens if even after the automatic extension, the minimum number of bids is not received?▼
Can the automatic extension be applied multiple times?▼
How does this rule benefit government employees?▼
What if the procuring entity needs the consultancy urgently and wants to proceed even with fewer bids?▼
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 5.4.3 of the Manual for Procurement of Consultancy Services, what is the minimum number of days by which the eProcurement portal should ordinarily extend the bid opening in case of low competition?
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