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Para 10.11 - Bidder Qualification | KartavyaDesk

Goods Manual

Original Rule Text

& Internal Trade (DPIIT), subject to meeting of quality & technical specifications. Startups may be MSMEs or otherwise. The decision of the Procuring Entity in this regard shall be final. b) Applicability to ‘Make in India’: Bidders (manufacturer or principal of authorised representative) who have a valid/ approved ongoing ‘Make in India’ agreement/ program and who, while meeting all other criteria above, except for any or more of sub-criteria in Experience and Past Performance above, would also be considered to be qualified provided: i) Their foreign ‘Make-in-India’ associates meet all the criteria above without exemption, and ii) the Bidder submits appropriate documentary proof for a valid/ approved ongoing ‘Make in India’ agreement/ program. iii) The bidder (manufacturer or principal of authorised representative) furnishes along with the bid a legally enforceable undertaking jointly executed by himself and such foreign Manufacturer for satisfactory manufacture, Supply (and erection, commissioning if applicable) and performance of ‘The Product’ offered, including all warranty obligations as per the general and special conditions of contract. c) Authorized Representatives: Bids of bidders quoting as authorised representatives of a principal manufacturer would also be considered to be qualified, provided: i) their principal manufacturer meets all the criteria above without exemption, and ii) the principal manufacturer furnishes a legally enforceable tender-specific authorisation in the prescribed form assuring full guarantee and warranty obligations as per the general and special conditions of the contract; iii) the bidder himself should have been associated, as the authorised representative of the same or other Principal Manufacturer for the same set of services as in the present bid (supply, installation, satisfactory commissioning, after-sales service as the case may be) for the same or similar ‘Product’ for past three years ending on ‘The Relevant Date.’ d) For Existing successful Past Suppliers: In case the bidder (manufacturer or principal of authorised representative) who is a successful past supplier of ‘The Product’ in at least one of the recent past [three]86procurements, who do not meet any or more of requirements above, would also be considered to be qualified in view of their proven credentials, for the maximum quantity supplied by him in such recent past. e) Joint Ventures: Credentials of the partners of Joint ventures cannot (repeat cannot) be clubbed for the purpose of compliance of PQC in supply of Goods/ Equipment, and each partner must comply with all the PQC criteria independently. f) Holding Companies: Credentials of the Holding company cannot (repeat cannot) be clubbed for the purpose of compliance of PQC in supply of Goods/ Equipment, and each subsidiary bidding company must comply with all the PQC criteria independently. However, the Financial Standing credentials of a domestic Holding Company can be clubbed with only one of its fully owned subsidiary bidding companies, with appropriate legal documents proving such ownership. g) Indian Subsidiaries of Foreign Principals/ Parent company cannot claim the technical and financial credentials of their principals/ parent or group companies/ allied firms (without the minimum percentage participation in JV) for fulfilling qualification criteria. h) 139The procuring entities may, in suitable cases, permit the demerged entities (by virtue of a corporate restructuring exercise, etc.) to use the credentials of the original/parent entity to satisfy the eligibility criteria in the tenders, at least for an initial five years from the incorporation of the demerged entities based on the merit and circumstances of the cases (e.g., type of procurement, nature of demerger, number of eligible bidders available etc.). Tender documents must clearly mention if the credentials of the demerged entity will be considered or not in the specific tender and specify the conditions under which demerged entities may become eligible.

What This Means

Para 10.11 of the Manual for Procurement of Goods, 2017, deals with qualifying criteria for bidders, ensuring that only capable and reliable suppliers are selected. It outlines specific conditions under which startups, companies with 'Make in India' agreements, authorized representatives, past suppliers, joint ventures, and holding companies can participate in government tenders. The goal is to balance promoting new businesses and domestic manufacturing with the need to secure quality goods and services for the government.

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

Key Points

  • Startups may be exempt from certain experience criteria if they meet quality and technical specifications.
  • Companies with valid 'Make in India' agreements can qualify even if they don't fully meet experience criteria, provided their foreign associates do and they provide necessary documentation.
  • Authorized representatives can qualify if their principal manufacturer meets the criteria and provides a legally enforceable authorization.
  • Past successful suppliers may be considered even if they don't meet all current requirements, based on their proven track record.
  • Credentials of partners in Joint Ventures and Holding Companies cannot be combined; each entity must independently meet the qualification criteria.

Practical Example

The Ministry of Electronics and Information Technology (MeitY) is procuring 10,000 laptops. A startup, 'InnovateTech,' submits a bid but lacks the required 3 years of experience. However, InnovateTech meets all quality and technical specifications. MeitY, after due diligence, decides that InnovateTech's product meets the required standards and considers their bid.

Another company, 'Global Solutions,' has a 'Make in India' agreement with a foreign manufacturer. Global Solutions doesn't meet the experience criteria, but their foreign associate does. They submit the required documentation proving the valid 'Make in India' agreement and a joint undertaking for satisfactory performance. MeitY then considers Global Solutions' bid as well.

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

Frequently Asked Questions

Can a startup with no prior experience participate in government tenders?
Yes, startups may be considered even if they don't meet all experience criteria, provided they meet the quality and technical specifications. The procuring entity's decision is final.
What is the significance of the 'Make in India' clause in this context?
The 'Make in India' clause allows companies with valid agreements to participate even if they don't fully meet experience criteria, promoting domestic manufacturing while ensuring quality.
Can the credentials of a parent company be used to qualify a subsidiary?
No, the credentials of a holding company cannot be clubbed with those of its subsidiary. Each bidding company must independently meet the qualification criteria.
What kind of proof is required for a 'Make in India' agreement?
The bidder must submit appropriate documentary proof for a valid/ approved ongoing ‘Make in India’ agreement/ program, along with a legally enforceable undertaking jointly executed by the bidder and the foreign manufacturer.
If a company has successfully supplied the product in the past, are they automatically qualified?
Not automatically, but if a bidder (manufacturer or principal of authorised representative) is a successful past supplier of ‘The Product’ in at least one of the recent past procurements, who do not meet any or more of requirements above, would also be considered to be qualified in view of their proven credentials, for the maximum quantity supplied by him in such recent past.

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 Para 10.11 of the Manual for Procurement of Goods, 2017, what is the deciding factor for a startup to be considered qualified despite not meeting certain experience criteria?

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