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Para 6.11 - Tender Committees | KartavyaDesk

Goods Manual

Original Rule Text

2. Tender Committee: a) For all cases having financial implications of more than Rs. 50 (Rupees Fifty) lakhs, a Tender Committee (TC or called Tender Evaluation Committee TEC in some organisations) to evaluate the bids should normally comprise three members, including a finance member (nominated by the Financial Advisor) and a representative of the user, as per SoPP. TC should not be large as it may slow down the evaluation process. However, suitable domain/ technical experts may be included in the committee to render assistance in the evaluation of the bids. There is no need to constitute any other committee for technical evaluation, preliminary evaluation, etc. The representative of the Procuring Entity will work as a convenor (Member Secretary) of the TC. The TC shall be responsible for all aspects and stages of the tender evaluation. Tender committees may be constituted with the approval of one level higher than the competent authority. It is advantageous for organisations doing procurements regularly to have pre-nominated (by designation) Tender committees for various categories and value-slabs of procurements included in the SoPP. b) As per Rule 173 (xxii) of GFR 2017, no member of the tender committee should be reporting directly to any other member of such committee in case the estimated value of the procurement exceeds Rs. 50 lakhs. This provision should be ensured in the constitution of all purchase committees, irrespective of the value of procurement. The Tender Committee to consider bids may be so constituted that an authority holding powers for recommending the bids by virtue of his position as a member of the Tender Committee shall not also be the accepting authority for such tenders. c) The member secretary of the Tender Committee (or competent authority, in direct acceptance cases) shall receive the bids opened along with other documents from the Bid Opening Committee and be responsible for the safe custody of the documents and for finalising the Procurement. The bid evaluation process is described in the subsequent paragraphs of this chapter.

What This Means

Para 6.11 of the Manual for Procurement of Goods, 2017, focuses on establishing Tender Committees (TCs) for evaluating bids, especially when the financial implications exceed ₹50 lakhs. These committees ensure transparency and fairness in the procurement process. The rule specifies the composition of the TC, emphasizing the inclusion of a finance member, a user representative, and domain/technical experts when needed. It also stresses the importance of avoiding hierarchical reporting structures within the committee to maintain impartiality. The Procuring Entity's representative acts as the convenor (Member Secretary), responsible for managing the tender evaluation process and safeguarding bid documents.

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

Key Points

  • Tender Committees (TCs) are mandatory for procurements exceeding ₹50 lakhs.
  • TCs must include a finance member and a user representative.
  • No member of the TC should report directly to another member if the procurement exceeds ₹50 lakhs.
  • The Procuring Entity's representative serves as the convenor (Member Secretary) of the TC.
  • Organizations can pre-nominate TCs for different procurement categories and value slabs.

Practical Example

The Ministry of Agriculture needs to procure 100 high-tech soil testing kits for ₹75 lakhs. As the cost exceeds ₹50 lakhs, a Tender Committee must be formed. The Financial Advisor nominates Mr. Sharma from the Finance Department. Ms. Verma, a senior scientist from the Soil Research Institute, represents the user department. Mr. Gupta, a procurement officer, is designated as the Member Secretary. To ensure compliance with Rule 173 (xxii) of GFR 2017, Mr. Sharma confirms that neither Ms. Verma nor Mr. Gupta directly report to him. The committee evaluates the bids, ensuring technical specifications are met and the price is competitive, before recommending the winning bid to the competent authority for final approval.

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 the procurement value is slightly below ₹50 lakhs? Do we still need a Tender Committee?
While not strictly mandatory as per Para 6.11, forming a Tender Committee for procurements close to ₹50 lakhs is a good practice to ensure transparency and accountability. Your organization's SoPP might have specific guidelines for such cases.
Can the same person be a member of the Tender Committee and also the accepting authority?
No, the rule explicitly states that the authority recommending the bids as a member of the Tender Committee should not also be the accepting authority. This separation of powers ensures impartiality.
What is the role of the 'finance member' in the Tender Committee?
The finance member, nominated by the Financial Advisor, provides expertise on financial aspects of the bids, ensuring compliance with budgetary provisions and financial regulations. They help assess the financial viability and reasonableness of the bids.
What does SoPP mean?
SoPP stands for Schedule of Powers of Procurement. It is a document that outlines the financial and administrative powers delegated to various officials within an organization for procurement activities.
Who is responsible for the safe custody of bid documents?
The member secretary of the Tender Committee (or the competent authority in direct acceptance cases) is responsible for receiving the bids and other documents from the Bid Opening Committee and ensuring their safe custody until the procurement process is finalized.

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 6.11 of the Manual for Procurement of Goods, 2017, for procurements with financial implications exceeding ₹50 lakhs, what is a mandatory requirement for the composition of the Tender Committee (TC)?

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