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Para 7.6.11 - Re-Tendering Rules | KartavyaDesk

Goods Manual

Original Rule Text

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.

What This Means

Para 7.6.11 of the Manual for Procurement of Goods, 2017, outlines the circumstances under which a government entity *must* cancel a tender process and re-tender. Think of it as a 'reset' button. This rule ensures fairness, transparency, and value for money in government purchases. It applies when the initial tender process has significant flaws or fails to produce satisfactory results. This protects the government from entering into unfavorable contracts and ensures that the procurement process is conducted correctly. It affects all government departments and agencies involved in procuring goods, as well as the vendors who participate in the bidding process.

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

Key Points

  • •Mandatory re-tendering is required under specific conditions.
  • •Conditions include substantial changes in requirements, fatal flaws in the tender process, and unresponsive bids.
  • •Lack of effective competition, excessively high prices, and bidder withdrawal also trigger re-tendering.
  • •The rule aims to ensure fair competition and prevent the government from accepting unfavorable bids.
  • •Simply having a small number of bidders doesn't automatically mean a lack of competition; other factors are considered.

Practical Example

The Ministry of Textiles issued a tender for the supply of 10,000 meters of Khadi fabric. After evaluating the bids, it was found that the lowest bidder, 'Weavers United,' quoted a price of ₹500 per meter, significantly higher than the estimated budget of ₹350 per meter. Furthermore, the second-lowest bidder's technical proposal didn't meet the minimum qualifying score. According to Para 7.6.11(e), because the lowest bid was substantially higher than the budget, and 7.6.11(c) because the second lowest bid failed to meet the technical requirements, the Ministry is obligated to cancel the tender and re-tender, adjusting the budget and technical specifications if necessary to attract more competitive bids.

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

Frequently Asked Questions

What does 'substantially responsive' mean in the context of bids?▼
'Substantially responsive' means that the bid largely meets the requirements outlined in the tender document, with only minor deviations that don't significantly impact the quality, quantity, or delivery of the goods.
If only one bid is received, does that automatically mean we have to re-tender?▼
Not necessarily. Para 7.6.11(d) states that lack of competition should not be determined *solely* based on the number of bidders. The procuring entity needs to assess whether there was genuine competition despite the single bid.
What happens if the lowest bidder withdraws after being selected but before signing the contract?▼
Para 7.6.11(f) clearly states that if the lowest evaluated bidder withdraws, fails to sign the contract, or fails to provide the required performance security, the procuring entity *must* re-tender the case.
Can we negotiate with the lowest bidder to bring the price down if it's higher than our budget?▼
While negotiation is sometimes possible in procurement, Para 7.6.11(e) mandates re-tendering if the initial bids are 'substantially higher' than the budget. Negotiation may be possible in other situations, but not when the price difference is significant enough to trigger this rule.
Who decides whether the 'quantity and quality of requirements have changed substantially'?▼
The procuring entity, typically through a designated committee or authority, makes this determination based on a careful assessment of the altered needs and their impact on the original tender specifications. Documentation of this assessment is crucial.

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 7.6.11 of the Manual for Procurement of Goods, 2017, under which of the following circumstances is a procuring entity *required* to re-tender a procurement process?

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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