Para 7.4.2 - Bid Comparison | KartavyaDesk

Original Rule Text

these aspects must also be considered. Such details, whenever considered necessary, should be evolved by the competent technical authority for incorporation in the tender document so that there is no ambiguity and/or vagueness in them; 4. Unless otherwise stipulated, the comparison of the responsive bids shall be on total outgo from the Procuring Entity’s pocket for the procurement to be paid to the supplier or any third party, including all elements of costs (please refer to para 6.6-3)) as per the terms of the proposed contract, including any taxes, duties, levies etc, freight insurance etc. Therefore, it should normally be on a CIF/ FOR destination basis, duly delivered, commissioned, as the case may be: a) In the case of goods manufactured in India or goods of foreign origin already located in India, GST, and any other duties/levies, etc., which will be contractually payable (to the bidder) on the goods are to be added; b) In the case of goods of foreign origin offered from abroad, customs duty and other similar import duties/taxes, which will be contractually payable (to the bidder) on the goods, are to be added (please refer to para 7.5.2 below); 5. As per policies of the Government from time to time, the purchaser reserves his option to give price/ purchase preferences as indicated in the tender document; 6. If the bids have been invited on a variable price basis, they will be evaluated, compared, and ranked based on the position prevailing on the deadline of bid submission and not based on any future date. If a Bidder submits a firm price quotation against the requirement of a variable price quotation, that bid shall be prima facie acceptable and considered further, taking the price variation asked for by the Bidder as nil. 7. Rarely, there may be a tie at the lowest bid (L-l) position between two or more start-up/ non-start-up bidders. It must be first determined whether it is a case of Cartel formation or anti-competitive practices, as per para 7.6.8 below, and if so, it shall be dealt with accordingly. If this is not a case of cartel formation, in such cases the decision will be taken in the following manner: i) In case one of the L1 bidders is MSE owned by SC/ST or a Women Entrepreneur, then 25% quantity order reserved for MSEs will be placed on the MSE owned by SC/ST or a Women Entrepreneur subject to fulfilment of other tender conditions. ii) If one of the L1 bidders is MSE, other than MSE owned by SC/ST or a Women Entrepreneur then an order shall be placed on such MSE bidders. iii) In all other scenarios, the order shall be placed on the L1 bidder having a higher turnover in the previous financial year. In case there is a tie at the lowest bid (L-1) position between only startup bidders and none of them has past turnover, the order will be placed on the startup that was registered earlier with the Department of Industrial Promotion and Policy. b) For Tenders issued through the GeM Portal: The tie-breaker methodology available on the GeM portal is to be followed. 8. If the price bid is ambiguous so that it may very well lead to two equally valid total price

What This Means

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

Key Points

• •Bids are compared based on the total cost to the government (CIF/FOR destination basis).
• •All taxes, duties, levies, freight, and insurance must be included in the cost comparison.
• •Price/purchase preferences for specific categories (e.g., MSEs, startups) are considered as per government policy.
• •Tie-breaking procedures are defined for situations where multiple bidders have the same lowest price (L1).
• •Variable price bids are evaluated based on the prices prevailing on the bid submission deadline.

Practical Example

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

Frequently Asked Questions

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