Para 10.6.2 - Selling Goods via Tender | KartavyaDesk

Original Rule Text

i) The basic principle for the sale of such goods through an advertised tender is ensuring transparency, competition, fairness, and elimination of discretion. Wide publicity should be ensured of the sale plan and the goods to be sold; ii) All required terms and conditions of sale are to be incorporated comprehensively in plain and simple language in the tender document. The applicability of taxes, as relevant, should be clearly stated in the document. Any statutory requirement as per para 10.4.7 may also be indicated, where applicable, in the Special Conditions of Sale. The tender document should also indicate the location and present condition of the goods to be sold so that the bidders can inspect the goods before bidding; iii) Bidders should be asked to furnish bid security (EMD) along with their bids. The amount of bid security should ordinarily be 5% (five per cent) of the assessed or reserved price of the goods. The exact bid security amount should be indicated in the tender document. The EMD shall be forfeited if the bidder unilaterally withdraws, amends, impairs, or derogates from his offer in any respect within the period of validity of his offer; iv) Late bids, that is, bids received after the specified date and time of receipt should not be considered; v) The bid of the highest acceptable responsive bidder should normally be accepted, and an acceptance/ sale order should be issued. Negotiation with bidders after bid opening must be severely discouraged. However, in exceptional circumstances where the price offered by that bidder is not reasonable, under exceptional circumstance (mutatis mutandis as per para 7.6.9), a negotiation may be held only with that bidder; vi) In case the selected bidder does not show interest in depositing the balance sale value or in lifting the goods, the bid security should be forfeited, and other actions initiated, including resale of the goods in question at the risk and cost of the defaulter; vii) In case the highest acceptable bidder cannot accept the total quantity to be disposed off, the remaining quantity may be offered to the next higher bidder(s) at the price offered by the highest acceptable bidder. The minimum quantity to be accepted shall be indicated in the tender; viii) If the bidder’s offer is not accepted, the bidder’s EMD shall be refunded to him. No interest shall be payable on such refunds. The EMD deposited by the successful bidder shall remain with the disposing Department till payment of the SD money has been made. It may be adjusted as part of the total SD money at the discretion of the disposing Department; ix) The offer should be examined by the competent level of the Tender Committee as per SoPP, and the Competent Authority should accept TC recommendations as per the laid down SoPP; x) The acceptance letter/sale order would be issued to the successful bidder(s) notifying the amounts and schedule of submission of SD and Balance Sale Value (BSV); xi) Successful bidders, hereinafter referred to as purchasers, shall have to submit an SD @ 25 (twenty-five) per cent of the total sale value of the contract within seven

What This Means

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

Key Points

• •Transparency and fairness are paramount in the sale process.
• •Tender documents must clearly state all terms, conditions, and applicable taxes.
• •Bidders must provide bid security (EMD), typically 5% of the assessed value.
• •Negotiations after bid opening are strongly discouraged and only allowed in exceptional circumstances.
• •The highest acceptable responsive bid should normally be accepted.

Practical Example

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

Frequently Asked Questions

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