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Rule 201 - Limited Tenders | KartavyaDesk

GFR 2017

Original Rule Text

Rule 201 Invitation of Bids. (i) For estimated value of the nonconsulting service up to [Rupees Fifty lakhs]46 or less: The Ministry or Department should scrutinise the preliminary list of likely contractors as identified as per Rule 199 above, decide the prima facie Eligible and capable contractors and issue limited tender enquiry to them asking for their offers by a specified date and time etc. as per standard practice. The number of the contractors so identified for issuing limited tender enquiry should be more than three.

What This Means

Rule 201 of the General Financial Rules (GFR), 2017, deals with how government departments should invite bids for non-consulting services. Specifically, it covers situations where the estimated cost of these services is up to ₹50 lakhs. Instead of a public advertisement, the department uses a 'limited tender enquiry'. This means they invite bids only from a pre-selected list of contractors deemed capable of doing the job.

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

Key Points

  • •Applies to non-consulting services with an estimated value up to ₹50 lakhs.
  • •Uses a 'limited tender enquiry' instead of open advertisement.
  • •Departments must identify a preliminary list of likely contractors based on Rule 199.
  • •The number of contractors invited for the limited tender enquiry should be more than three.
  • •Departments must scrutinize the list to ensure contractors are eligible and capable.

Practical Example

The Ministry of Rural Development needs to procure 1000 solar streetlights for a village electrification project. The estimated cost is ₹45 lakhs. According to Rule 199, the department has identified a list of 8 potential suppliers. Following Rule 201, the department reviews this list, ensuring each supplier meets the eligibility criteria (financial stability, past experience, technical capacity). They shortlist 5 suppliers (Solaris Ltd, Bright Solutions, Energy Plus, Green Power Corp, and Sunbeam Industries) and send them a limited tender enquiry, specifying the required specifications, delivery timeline, and the deadline for submitting their bids.

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 the estimated cost exceeds ₹50 lakhs?▼
Rule 201 only applies to non-consulting services up to ₹50 lakhs. For higher amounts, other rules regarding open tendering or e-procurement would apply, as specified in the GFR.
What is considered a 'non-consulting service'?▼
Non-consulting services are those that don't primarily involve advisory or intellectual work. Examples include supply of goods, construction, maintenance, and transportation.
What is the purpose of having a limited tender enquiry?▼
It streamlines the procurement process for smaller value contracts, saving time and resources compared to open tendering, while still ensuring competitive pricing and quality.
What if fewer than three contractors are deemed eligible?▼
The department should re-evaluate the criteria or broaden the search to identify more eligible contractors. If, after diligent effort, fewer than three are found, justification must be recorded for proceeding with the available options.
Where can I find more information about Rule 199?▼
Rule 199 of the General Financial Rules, 2017, provides details on identifying potential contractors for limited tender enquiries. Refer to the official GFR document for the complete text.

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 201 of GFR 2017, for non-consulting services with an estimated value up to ₹50 lakhs, what method of tendering is prescribed?

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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