Rule 173 - Fair Bidding | KartavyaDesk
Original Rule Text
( d) price. ( e ) cost of operating, maintaining and repairing etc. (xii) Bids received should be evaluated in terms of the conditions already incorporated in the bidding documents; No new condition which was not incorporated in the bidding documents should be brought in for evaluation of the bids. Determination of a bid's responsiveness should be based on the contents of the bid itself without recourse to extrinsic evidence. (xiii) Bidders should not be permitted to alter or modify their bids after expiry of the deadline for receipt of bids. (xiv) Negotiation with bidders after bid opening must be severely discouraged. However, in exceptional circumstances where price negotiation against an ad-hoc procurement is necessary due to some unavoidable circumstances, the same may be resorted to only with the lowest evaluated responsive bidder. (xv) Deleted.40 (xvi) Contract should ordinarily be awarded to the lowest evaluated bidder whose bid has been found to be responsive and who is eligible and qualified to perform the contract satisfactorily as per the terms and conditions incorporated in the corresponding bidding document. However, where the lowest acceptable bidder against ad-hoc requirement is not in a position to supply the full quantity required, the remaining quantity, as far as possible, be ordered from the next higher responsive bidder at the rates offered by the lowest responsive bidder. (xvii) Procurement of Energy Efficient Electrical Appliances: Ministries/ Departments while procuring electrical appliances notified by Department of Expenditure
What This Means
Rule 173 of the General Financial Rules (GFR) 2017 focuses on ensuring fairness, transparency, and efficiency in the bidding process for government procurements. It lays down guidelines for evaluating bids, preventing post-bid modifications, and awarding contracts. The core principle is to select the most suitable bidder based on pre-defined criteria and avoid any bias or manipulation after the bids are submitted. This rule applies to all government departments and organizations involved in procurement activities, affecting everyone from the officers drafting the tender documents to the final approving authority.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Bids must be evaluated based solely on the conditions stated in the bidding documents.
- •Bidders cannot alter or modify their bids after the deadline.
- •Negotiation with bidders after bid opening is strongly discouraged and only permissible in exceptional circumstances with the lowest evaluated responsive bidder for ad-hoc procurements.
- •Contracts should be awarded to the lowest evaluated responsive bidder who meets eligibility and qualification criteria.
- •If the lowest bidder cannot supply the full quantity for an ad-hoc requirement, the remaining quantity can be sourced from the next higher responsive bidder at the lowest bidder's rate.
Practical Example
The Ministry of Electronics and Information Technology (MeitY) issued a tender for the supply of 5000 laptops. Three companies, AlphaTech, BetaCorp, and Gamma Solutions, submitted bids. After the deadline, AlphaTech realized they had underestimated their costs and requested to revise their bid. According to Rule 173, MeitY cannot allow AlphaTech to modify their bid. The evaluation committee found BetaCorp to be the lowest evaluated responsive bidder. However, BetaCorp stated they could only supply 3000 laptops. MeitY, following Rule 173, awarded the contract for 3000 laptops to BetaCorp at their quoted price and then approached Gamma Solutions (the next higher responsive bidder) to supply the remaining 2000 laptops at BetaCorp's price.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'responsive bidder' mean in the context of Rule 173?▼
Under what circumstances can negotiation with bidders be allowed after bid opening?▼
What happens if the lowest bidder is unable to supply the full quantity required?▼
Can new conditions be introduced during the bid evaluation process?▼
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 173 of GFR 2017, on what basis should the determination of a bid's responsiveness be based?
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