Rule 162 - Limited Tender | KartavyaDesk
Original Rule Text
Rule 162 Limited Tender Enquiry (i) This method may be adopted when estimated value of the goods to be procured is up to [Rupees Fifty Lakhs]30. Copies of the bidding document should be sent directly by speed post/registered post/courier/ email to firms which are borne on the list of registered suppliers for the goods in question as referred under Rule 150 above. The number of supplier firms in Limited Tender Enquiry should be more than three. Efforts should be made to identify a higher number of approved suppliers to obtain more responsive bids on competitive basis. Further, an organisation should publish its limited tender enquiries on [GeM as well as on GeM- Central Public Procurement Portal (CPPP). An organisation having its own website should also publish all its advertised tender enquiries on the website]31 . (ii) The unsolicited bids should not be accepted. However, Ministries/ Departments should evolve a system by which interested firms can register and bid in next round of tendering. (iii) Purchase through Limited Tender Enquiry may be adopted even where the estimated value of the procurement is more than [Rupees Fifty Lakhs]32, in the following circumstances. (a) The competent authority in the Ministry or Department certifies that the demand is urgent and any additional expenditure involved by not procuring through advertised tender enquiry is justified in view of urgency. The Ministry or Department should also put on record the nature of the urgency and reasons
What This Means
Rule 162 of the General Financial Rules (GFR), 2017, deals with Limited Tender Enquiry (LTE). Think of it as a simplified way to buy goods when the estimated cost is relatively low, specifically up to ₹50 lakhs. Instead of a wide-open bidding process, you contact a select list of registered suppliers to get quotes. This saves time and resources when a full-blown open tender isn't necessary. The goal is to get competitive bids from a reasonable number of suppliers.
This rule affects all government departments and organizations that procure goods. It outlines the process for inviting bids, emphasizing the importance of having at least three suppliers on the list and encouraging efforts to find even more. Importantly, it also mandates that these limited tender enquiries be published on GeM (Government e-Marketplace) and the Central Public Procurement Portal (CPPP), and on the organization's own website if it has one. There are also exceptions where LTE can be used even for purchases exceeding ₹50 lakhs, but only under urgent circumstances and with proper justification.
Finally, unsolicited bids are generally not accepted, but departments should have a system for interested firms to register for future tendering opportunities. This ensures fairness and allows new suppliers to potentially participate in government procurement.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •LTE is used for procurements up to ₹50 lakhs.
- •Bidding documents are sent directly to registered suppliers (at least three).
- •LTEs must be published on GeM, CPPP, and the organization's website (if applicable).
- •Unsolicited bids are generally not accepted, but a registration system for future tenders should be in place.
- •LTE can be used for procurements exceeding ₹50 lakhs in urgent cases with proper justification.
Practical Example
The Ministry of Rural Development needs to purchase 200 water pumps for a rural development project. The estimated cost is ₹40 lakhs. Instead of issuing a full open tender, the procurement officer, Mr. Sharma, decides to use Limited Tender Enquiry as per Rule 162. He identifies five registered suppliers of water pumps from the ministry's approved vendor list. He sends them the bidding documents via email and speed post. The tender is also published on GeM and the Ministry's website.
After receiving bids from all five suppliers, Mr. Sharma's team evaluates them based on price, quality, and delivery timelines. They select the supplier offering the best value for money. Even though one unsolicited bid came in, it was not considered as per the rule. The Ministry also ensures that the company that sent the unsolicited bid is registered for future tendering opportunities.
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 fewer than three suppliers are registered for a particular item?▼
Can we negotiate with the lowest bidder in an LTE?▼
What constitutes 'urgency' to justify using LTE for procurements above ₹50 lakhs?▼
Is it mandatory to publish LTE on GeM even if the organization has its own e-procurement portal?▼
What is the difference between LTE and Open Tender Enquiry?▼
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 Rule 162 of GFR 2017, up to what estimated value of goods can the Limited Tender Enquiry (LTE) method generally be adopted?
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