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Para 5.1.5 - Bid Extension | KartavyaDesk

Goods Manual

Original Rule Text

2. Auto-Extension of Bids – in case of lack of Response: The e-Procurement portal/ GeM should not provide anybody, including the Procuring Entity, with the bid count before the tender opening time, even at their request. The eProcurement portal/ GeM may facilitate the Procuring Entity in specifying the minimum number of bids considered sufficient and the pre-specified number of days for automatic extension of bid opening (not less than 7 days) at the time of tender upload. The system shall declare in the tender details that in case of low competition (without specifying the number), the tender closing time shall be automatically extended by the specified number of days. If bids received till the bid opening time are less than the specified minimum bids, the system should automatically extend (only once) the tender opening by the specified number of days without seeking any input from or sharing any information with anyone, including the Procuring Entity. Purchasers and bidders shall only be informed that due to less competition, the tender closing time has been extended up to (date and time). However, this automatic extension of bid opening shall be done only once, not repeatedly. If a Procuring Entity wants to go ahead even with low competition (e.g., due to urgency), they may mention ‘one’ as the minimum bid. So that if no bid is received, the tender is automatically extended; otherwise, it is not. GeM and eProcurement portals shall update their systems accordingly.

What This Means

Para 5.1.5 of the Manual for Procurement of Goods, 2017, deals with automatically extending bid deadlines in e-procurement when there's a lack of sufficient responses. Think of it as a safety net to ensure fair competition. The rule prevents anyone, including the government department doing the buying, from knowing how many bids have been submitted before the deadline. This keeps the process transparent and prevents potential manipulation.

The system is designed to automatically extend the bid submission deadline if the number of bids received is below a pre-defined minimum. This extension happens only once. The goal is to attract more bidders and get the best possible value for the government. This rule affects all government departments using e-procurement platforms like GeM and all vendors who participate in government tenders.

However, if the department needs the goods or services urgently, they can set the minimum bid requirement to 'one'. This means that if even a single bid is received, the tender will proceed without extension. If no bids are received, it will automatically extend once.

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

Key Points

  • •Bid count is kept secret until the tender opening time.
  • •Automatic bid extension occurs only once if bids are below the pre-specified minimum.
  • •Extension period must be at least 7 days.
  • •Procuring Entity can set minimum bids to 'one' for urgent requirements.
  • •Applies to all e-procurement platforms including GeM.

Practical Example

The Ministry of Textiles needs to procure 1000 cotton bales through e-procurement. They specify a minimum of three bids for the tender to be considered valid. The initial deadline is set for July 15th. When the deadline arrives, only two bids have been received. The e-procurement system, without any manual intervention, automatically extends the deadline by seven days to July 22nd. All potential bidders are notified that the deadline has been extended due to low competition.

In another scenario, the Ministry of Health urgently requires medical supplies. They set the minimum bid requirement to 'one'. If no bids are received by the initial deadline, the system will automatically extend the deadline by the pre-specified number of days. However, if even one bid is received, the tender will proceed without any extension.

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

Frequently Asked Questions

Can I, as a government officer, check the number of bids received before the tender opening time?▼
No, the system is designed to prevent anyone, including the procuring entity, from accessing the bid count before the scheduled opening time. This ensures fairness and transparency.
What happens if even after the automatic extension, the minimum number of bids is not received?▼
After the single automatic extension, if the minimum bid requirement is still not met, the procuring entity will need to decide on the next course of action. This might involve re-tendering with adjusted specifications or other appropriate measures as per the procurement guidelines.
How long is the automatic extension period?▼
The procuring entity specifies the extension period at the time of tender upload, but it must be at least 7 days.
Does this rule apply to all types of procurement?▼
This rule specifically applies to e-procurement of goods as per the Manual for Procurement of Goods, 2017. Other procurement methods may have different rules.
If we need something urgently, can we bypass this automatic extension?▼
Yes, you can set the minimum bid requirement to 'one'. This will ensure that the tender proceeds if even a single bid is received, avoiding the automatic extension.

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 5.1.5 of the Manual for Procurement of Goods, 2017, what information regarding bids should NOT be provided to the Procuring Entity before the tender opening time?

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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