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Para 7.3.2 - Pricing Errors | KartavyaDesk

Goods Manual

Original Rule Text

eprocurement. 1. If, in the price structure quoted for the required goods, there is a discrepancy between the unit price and total price (which is obtained by multiplying the unit price by the quantity), the unit price shall prevail, and the total price corrected accordingly; 2. If there is an error in a total corresponding to the addition or subtraction of sub-totals, the sub-totals shall prevail, and the total shall be corrected. 3. If there is a discrepancy between words and figures, the amount in words shall prevail. 4. Such a discrepancy in an offer should be conveyed to the bidder, asking him to respond by a target date, as per para 7.3.5 below. If the bidder does not agree to the Procuring Entity’s observation, the bid is liable to be rejected.

What This Means

Para 7.3.2 of the Manual for Procurement of Goods, 2017, addresses discrepancies in pricing during e-procurement. Essentially, it provides a clear hierarchy for resolving errors in bids. This rule ensures fairness and transparency in the bidding process by prioritizing the most reliable information when inconsistencies arise. It applies to all government departments and agencies involved in procuring goods through electronic platforms.

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

Key Points

  • •Unit price prevails over total price if there's a discrepancy.
  • •Sub-totals prevail over the final total if there's an error in addition or subtraction.
  • •Amount in words prevails over figures if there's a discrepancy.
  • •The procuring entity must inform the bidder about the discrepancy and seek confirmation.
  • •Bid is liable to be rejected if the bidder disagrees with the procuring entity's observation.

Practical Example

The Department of Rural Development is procuring 100 water pumps through e-procurement. M/s AquaTech submits a bid with a unit price of ₹5,000 per pump, but the total price is incorrectly stated as ₹450,000. According to Para 7.3.2, the unit price of ₹5,000 will prevail, and the total price will be corrected to ₹500,000. The department must inform M/s AquaTech of the discrepancy and give them a chance to confirm the corrected total. If AquaTech disagrees, their bid can be rejected. Similarly, if the bid states 'Five Thousand Rupees' but the figure is '50000', the amount in words will be considered correct.

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 bidder refuses to accept the correction made by the procuring entity?▼
According to Para 7.3.2, if the bidder does not agree with the procuring entity's observation regarding the discrepancy, the bid is liable to be rejected.
Does this rule apply to all types of procurement?▼
Para 7.3.2 specifically applies to e-procurement of goods. Other procurement methods may have different rules for handling discrepancies.
What is the target date mentioned in the rule?▼
The target date refers to the deadline by which the bidder must respond to the procuring entity's notification of the discrepancy. This date is determined as per para 7.3.5 of the manual.
Who is responsible for identifying these discrepancies?▼
The procuring entity, typically the department or agency conducting the e-procurement, is responsible for carefully reviewing bids and identifying any discrepancies in pricing or calculations.
What if the discrepancy is minor and doesn't significantly affect the overall cost?▼
Even seemingly minor discrepancies must be addressed according to Para 7.3.2 to maintain transparency and fairness in the bidding process. The rule doesn't provide for exceptions based on the size of the discrepancy.

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 7.3.2 of the Manual for Procurement of Goods, 2017, which of the following prevails in case of a discrepancy between the unit price and the total price in an e-procurement bid?

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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