Para 7.6.11 — GOODS_MANUAL

a) If the quantity and quality of requirements have changed substantially or there is an un-rectifiable infirmity in the tender process b) when none of the bids is substantially responsive to the requirements of the Procurement Documents; c) none of the technical Proposals meets the minimum technical qualifying score; d) If effective competition is lacking. However, lack of competition shall not be determined solely based on the number of Bidders. (Please refer to the paragraph above regarding receipt of a single offer.) e) the Bids’/Proposals’ prices are substantially higher than the updated cost estimate or available budget; f) If the bidder, whose bid has been found to be the lowest evaluated bid, fails to sign the procurement contract, or fails to provide the performance security as may be required (Para 7.7.3) or otherwise withdraws from the procurement process (para 5.2.5), the Procuring Entity shall re-tender the case113.

2. In cases where responsive bids are available, the aim should be to finalise the tender by taking mitigating measures even in the conditions described above. If it is decided to reinvite the tender, the justification should balance the perceived risks in the finalisation of the tender (marginally higher rates) against the certainty of resultant delays, cost escalations, and loss of transparency in the re-invited tender. It may be noted that once a Tender is retendered, the bids in the old tender cannot be revived and reconsidered, as per the Indian Contract Act, even if prices received in the new tender turn out to be higher.

3. The CA should accord approval for re-tendering based on the reasons/proper justification in writing. The decision of the procuring entity to cancel the procurement shall be immediately communicated to all bidders that participated in the procurement process, and bids, if not opened, would not be opened and, in case of off-line tenders, be returned unopened. EMD, cost of Tender Document (if any) etc should be promptly returned.

4. Before retendering, the procuring entity is first to check whether, while floating/issuing the enquiry, all requirements, and formalities such as standard conditions, industry-friendly qualification criteria, technical and commercial terms, wide publicity, sufficient time for tendering, and so on, were fulfilled. If not, a fresh enquiry is to be issued after rectifying the deficiencies.

7.6.11 Cancellation of Procurement Process/ Rejection of All Bids/Re-tender [Rule 173

(xix) of GFR 2017] 1. The Procuring Entity has the right to cancel the process of procurement or reject all bids at any time before intimating acceptance of a successful bid under the circumstances mentioned below. However, such rejections should be well considered and normally be in cases where all the bids are either substantially in deviation from the Specifications or considered unreasonably high in cost and, if in the latter case, the lowest qualified bidder during negotiations fails to reduce the costs to a reasonable level. If it is decided to reinvite the bids, the Specifications should be critically reviewed/modified so as to address the reasons for not receiving any acceptable bid in the earlier Invitation for bids. The Procuring Entity may cancel the process of procurement or reject all bids under the circumstances mentioned below: