Para 4.2.2 — GOODS_MANUAL

Risk Mitigation 1. The crux of this mode of procurement is attracting bids from all possible prospective bidders. The risk is that this may not be achieved, even after incurring the extra cost of open tendering. This could be due to a) Insufficient publicity; b) Hindrances in the availability of tender documents; c) insufficient time for bid preparation or d) Due to the onerous cost of tender documents or EMD It should be ensured that the NIT on the website is easily searchable and visible, not hidden under layers of clicks. The matter should not be left entirely to the website or media publicity alone. Due diligence should be done to locate likely bidders. All registered vendors/contractors (in particular past successful vendors/contractors) should be given intimation about forthcoming tenders via SMS/mail/ email. Further, a limited or open tender that results in only one effective offer shall be treated as a single tender enquiry situation, with relevant powers of approval, etc. It should also be ensured that there is no impediment to the issue/access of tender documents. Ordinarily, the due date fixed for the opening of the tender shall be a minimum of 21 (twenty-one) days from the date of advertisement, which may vary, considering the nature of the material called for and delivery requirements. The due date may be subsequently extended with the approval of the CA only if it is felt necessary to have better competition. The tender documents shall be priced minimally (if at all priced, refer to para 5.2.1 - Availability and Cost of Tender Documents), keeping in view the value of the tender as well the cost of preparation and publicity of the tender documents. EMD should be sufficient to ensure that bidders honour their bids but, at the same time, should not be large enough to reduce competition.

4.2.2 OTE - Risks and Mitigations

Chapter 4: Modes of Procurement and Tendering Systems

4.3. Global Tender Enquiry (GTE) GTE is like OTE, but through appropriate advertising and provision for payment in Foreign Currencies through Letter of Credit, it is aimed at inviting the participation of inter-alia foreign firms. Bids in foreign currency or any other mode of procurement shall be summarily rejected. Subject to restriction on GTE (para 4.3.2 below), GTE can also be in SLTE, LTE or STE mode if justified with proper approvals as per SoPP. The point of balance between VfM and the cost/ complexity of the procedure is further aggravated as compared to OTE. The development of local industry also needs to be kept in mind. Hence, it may be viable only in the following situations:

Risk Mitigation 2. Lack of clarity in description/ specification of requirement or undue stringency in qualifying criteria or other conditions Mitigations of such risks can be addressed at the time of need assessment and procurement planning (please refer to Chapter 2) to attract adequate competition.

a) Where Goods of required specifications/quality may not be available within the country, and alternatives available in the country are not suitable for the purpose, it is necessary to also look for suitable competitive offers from abroad; a) Non-existence of a local branch of the global principal of the manufacturer/vendors/ contractors; b) Requirement for compliance to specific international standards in technical specifications; c) Absence of a sufficient number of competent domestic bidders likely to comply with the required technical specifications, and in case of suspected cartel formation among Indigenous bidders.

(Rule 161 of GFR 2017)