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Para 4.15 - Two-Envelope Bidding | KartavyaDesk

Goods Manual

Original Rule Text

1. In technically complex requirements, but where the capability of the source of supply is still not critical, and the value of procurement is not high, a Single-stage two-envelopes system may be followed. 2. In off-line tenders, bidders should be asked to bifurcate their quotations into two separately sealed envelopes. The first envelope, called the techno-commercial bid, contains the eligibility, technical quality and performance aspects, commercial terms and conditions and documents sought in the tender, except the price and relevant financial details. In the second envelope, called the financial bid, the price quotation, along with other financial details, are submitted. Both the envelopes are to be submitted together in a sealed outer envelope. In eProcurement, the bidder would be asked to upload two files, mutatis mutandis. 3. The techno-commercial bids are to be opened in the first instance on the pre-announced bid opening date and time and scrutinised and evaluated by the TC with reference to parameters prescribed in the tender documents, and responsive, eligible, and technically compliant bidders are decided. 4. Thereafter, in the second instance, the financial bids of only the techno-commercially compliant offers (as decided in the first instance above) are to be opened on a preannounced date and time for further scrutiny, evaluation, ranking and placement of the contract. In e-procurement, financial bids of technically non-compliant offers would remain encrypted and unopened. In off-line tenders, the financial bids of technically non-compliant bidders should be returned unopened to the respective bidders by registered acknowledgement due/ reliable courier or any other mode with proof of delivery.

What This Means

Para 4.15 of the Manual for Procurement of Goods, 2017 outlines a specific tendering process called the 'Single-stage two-envelopes system'. This method is used when the technical requirements are somewhat complex, but the supplier's specific capabilities aren't super critical, and the overall purchase value isn't very high. Think of it as a middle-ground approach for procurements that need some technical evaluation but aren't massive, high-stakes projects. This rule affects all government departments and agencies involved in procuring goods, as well as the companies bidding for these contracts.

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

Key Points

  • •Applies to procurements with technically complex requirements but where supplier capability is not critical and the value is not high.
  • •Bidders submit two envelopes: a 'techno-commercial bid' (technical details, eligibility, commercial terms) and a 'financial bid' (price quotation).
  • •Techno-commercial bids are opened and evaluated first. Only bids that meet the technical requirements have their financial bids opened.
  • •Financial bids of technically non-compliant bidders are returned unopened (in offline tenders) or remain encrypted (in e-procurement).
  • •This process ensures that technical compliance is assessed before price is considered.

Practical Example

The Ministry of Rural Development needs to procure 500 water purification systems for rural schools. The technical specifications are moderately complex, requiring a certain level of filtration and durability, but the specific brand or supplier isn't paramount. The estimated cost is ₹5,00,000. They decide to use the Single-stage two-envelopes system as per Para 4.15. Bidders submit two envelopes: one with technical specifications, certifications, and warranty details, and the other with the price quotation. The Technical Committee evaluates the technical bids and finds that only three companies meet the required standards. The financial bids of these three companies are then opened to determine the lowest bidder. The financial bids of the other companies are returned unopened.

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 fails to submit both envelopes?▼
Generally, if a bidder doesn't submit both the techno-commercial and financial bids as required, their bid will be considered incomplete and may be rejected.
Can the price be mentioned in the techno-commercial bid?▼
No, the price and all financial details must be exclusively included in the financial bid envelope. Including price information in the techno-commercial bid could lead to disqualification.
What if no bids are technically compliant?▼
If no bids meet the technical requirements, the tender may need to be re-evaluated, the specifications may need to be revised, or a fresh tender may be issued.
Is this system applicable for all types of procurements?▼
No, this system is specifically designed for situations where the technical requirements are moderately complex, supplier capability is not critical, and the procurement value is not high. Other procurement methods are more suitable for different scenarios.
How is the 'value of procurement' determined to decide if this rule applies?▼
The 'value of procurement' is typically the estimated total cost of the goods being procured. The specific threshold for 'not high' is not explicitly defined in Para 4.15 and would generally be determined by the procuring entity based on internal guidelines and financial regulations.

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 4.15 of the Manual for Procurement of Goods, 2017, under what conditions is the Single-stage two-envelopes system most appropriately used?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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