Rule 164 - Tender Revisions | KartavyaDesk
Original Rule Text
bidders and if any such discussion is held, equal opportunity shall be given to all bidders to participate in the discussions; (d) in revising the relevant terms and conditions of the procurement, the procuring entity shall not modify the fundamental nature of the procurement itself, but may add, amend or omit any specification of the subject matter of procurement or criterion for evaluation; (e) in the second stage of the bidding process, the procuring entity shall invite bids from all those bidders whose bids at the first stage were not rejected, to present final bid with bid prices in response to a revised set of terms and conditions of the procurement; (f) any bidder, invited to bid but not in a position to supply the subject matter of procurement due to modification in the specifications or terms and conditions, may withdraw from the bidding proceedings without forfeiting any bid security that he may have been required to provide or being penalised in any way, by declaring his intention to withdraw from the procurement proceedings with adequate justification.
What This Means
Rule 164 of the General Financial Rules (GFR), 2017, deals with situations where the government needs to revise the terms of a tender *after* the initial bids have been received. This might happen if the government realizes that the original specifications weren't quite right, or if new information comes to light that changes the requirements. The rule ensures fairness and transparency in this process.
The core idea is that if the government changes the tender terms, all bidders who haven't been disqualified in the first round get a fair shot at submitting a revised bid based on the new terms. Importantly, the changes shouldn't fundamentally alter the nature of what the government is trying to buy. Think of it like this: you can change the color of the car you want, but you can't suddenly decide you want a motorcycle instead. Also, bidders who can't meet the new requirements are allowed to withdraw without penalty.
This rule affects government departments and agencies involved in procurement, as well as companies that bid on government contracts. It ensures that the procurement process remains competitive and that bidders are not unfairly disadvantaged by changes made after the initial bidding stage.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Allows revision of tender terms after initial bids, but before final selection.
- •All bidders not initially rejected must be given the opportunity to submit revised bids.
- •Revisions cannot fundamentally change the nature of the procurement.
- •Bidders can withdraw without penalty if they cannot meet the revised terms.
- •Equal opportunity must be given to all bidders to participate in discussions about revisions.
Practical Example
The Ministry of Electronics and Information Technology (MeitY) issued a tender for 10,000 laptops. After receiving initial bids, the technical evaluation committee realized that the original specifications for battery life were insufficient. They decided to increase the minimum battery life requirement. According to Rule 164, MeitY informed all bidders who had not been disqualified about the revised specification. They held a meeting with all bidders to discuss the change and its implications.
One of the bidders, 'Tech Solutions Pvt. Ltd.,' found that the revised battery specification meant they would have to use a more expensive battery, making their bid uncompetitive. They informed MeitY that they were withdrawing from the bidding process. As per Rule 164, Tech Solutions was allowed to withdraw without forfeiting their bid security of ₹50,000.
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 agree with the revised terms?▼
Can the government completely change what they are buying after receiving initial bids?▼
Does this rule apply to all types of government procurement?▼
What constitutes a 'fundamental change' to the procurement?▼
Are discussions with bidders mandatory when revising terms?▼
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 164 of GFR 2017, if a procuring entity revises the terms and conditions of a procurement after the initial bids are received, what is the most important restriction regarding the nature of the revisions?
Related Rules
Need help understanding this rule?
Ask Niti — your AI assistant for GFR 2017 and other government rules