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Rule 163 - Two-Bid System | KartavyaDesk

GFR 2017

Original Rule Text

The technical bid and the financial bid should be sealed by the bidder in separate covers duly super-scribed and both these sealed covers are to be put in a bigger cover which should also be sealed and duly superscribed. The technical bids are to be opened by the purchasing Ministry or Department at the first instance and evaluated by a competent committee or authority. At the second stage financial bids of only these technically acceptable offers should be opened after intimating them the date and time of opening the financial bid for further evaluation and ranking before awarding the contract.

What This Means

Rule 163 of the General Financial Rules (GFR), 2017, outlines the procedure for handling bids in a two-bid system, commonly used in government procurement. This rule ensures transparency and fairness by separating the technical evaluation from the financial evaluation. It applies when the government is seeking to purchase goods or services where technical specifications are crucial and need to be assessed independently before considering the price. This rule directly affects all government departments and ministries involved in procurement, as well as vendors and suppliers participating in government tenders.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Bidders must submit technical and financial bids in separate, sealed envelopes, both placed inside a larger sealed envelope.
  • •The technical bids are opened and evaluated first by a designated committee.
  • •Only technically qualified bidders' financial bids are opened.
  • •Bidders whose financial bids will be opened must be notified of the date and time.
  • •The financial bids are then evaluated to determine the final ranking and award the contract.

Practical Example

The Ministry of Electronics and Information Technology (MeitY) is procuring 500 high-performance servers. They use a two-bid system. Three companies, AlphaTech, BetaSolutions, and GammaCorp, submit their bids. AlphaTech's technical bid is deemed non-compliant due to failing to meet the required processing speed. BetaSolutions and GammaCorp pass the technical evaluation. MeitY then informs BetaSolutions and GammaCorp that their financial bids will be opened on July 26th at 11:00 AM. After opening the financial bids, GammaCorp's bid is the lowest, and they are awarded the contract, assuming all other criteria are met.

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 a bidder doesn't seal the bids properly?▼
Improperly sealed bids may be rejected at the discretion of the procuring entity, as it compromises the integrity of the bidding process.
Can a bidder whose technical bid is rejected appeal the decision?▼
The GFR outlines grievance redressal mechanisms. The bidder can follow those procedures to appeal, but the decision of the competent authority is usually final.
Is this rule applicable to all types of government tenders?▼
No, this rule specifically applies to tenders where a two-bid system is used, typically when technical evaluation is a critical factor.
What is the purpose of separating the technical and financial bids?▼
Separating the bids ensures that the technical evaluation is unbiased and not influenced by the price quoted. This helps in selecting the best technically suitable option, regardless of cost, before considering the financial aspects.
Who is responsible for evaluating the technical bids?▼
A competent committee or authority designated by the purchasing Ministry or Department is responsible for evaluating the technical 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 Rule 163 of GFR 2017, how should a bidder submit their technical and financial bids?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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