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Para 7.6.2 - Bid Validity Extension | KartavyaDesk

Goods Manual

Original Rule Text

2. If, however, due to some exceptional and unforeseen reasons, the purchase organisation is unable to decide on the placement of the contract within the original validity period, it may request, preferably before the expiry of the original validity period, all the responsive bidders to extend the validity of their bids up to a suitable period. They may also be requested to extend the validity of the Bid Security for the corresponding additional period. A bidder may not agree to such a request, and this will not entail forfeiture of its Bid Security. But the bidders who agree to extend the validity are to do so without changing any terms, conditions, and so on of their original bids. The procuring officers should record reasons for seeking an extension of bid validity at the time of taking such decisions.

What This Means

Para 7.6.2 of the Manual for Procurement of Goods, 2017 deals with situations where a government department (the 'purchase organization') can't finalize a contract within the original timeframe that bids are valid for. This might happen due to unforeseen circumstances causing delays in the decision-making process. The rule allows the department to ask all bidders who submitted valid proposals to extend the validity of their bids. They should also be asked to extend their Bid Security (also known as Earnest Money Deposit or EMD) for the same extended period.

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

Key Points

  • •Purchase organization can request bid validity extension due to unforeseen reasons.
  • •Request should ideally be made before the original validity period expires.
  • •Bidders can refuse extension without forfeiting their Bid Security.
  • •If bidders agree to extend, the original bid terms and conditions remain unchanged.
  • •Procuring officers must document the reasons for seeking bid validity extension.

Practical Example

The Ministry of Textiles issued a tender for the supply of 5000 units of specialized weaving machinery. The original bid validity was set for 90 days. However, due to a sudden policy change regarding import duties, the evaluation committee needed more time to reassess the financial implications of each bid. With only 15 days left before the bids expired, the Joint Secretary, Mr. Sharma, sent a formal request to all responsive bidders, including 'WeaveTech Solutions' and 'ThreadMaster Industries', asking them to extend their bid validity for an additional 60 days and extend their EMD accordingly. WeaveTech Solutions agreed to the extension, while ThreadMaster Industries declined. ThreadMaster's EMD was returned without penalty, and WeaveTech's bid remained under consideration with its original terms intact.

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 a bidder refuses to extend the bid validity?▼
If a bidder refuses to extend the bid validity, their Bid Security will not be forfeited, and their bid will no longer be considered.
Can the purchase organization change the terms and conditions of the bid while requesting an extension?▼
No, the purchase organization cannot change any terms, conditions, or specifications of the original bid when requesting an extension. The extension applies only to the validity period.
What constitutes an 'exceptional and unforeseen reason' for extending bid validity?▼
An 'exceptional and unforeseen reason' could include significant policy changes, unexpected legal challenges, major disruptions in the market, or any other event that significantly impacts the evaluation process and was not reasonably foreseeable at the time of bid invitation.
Is it mandatory to seek extension of Bid Security along with bid validity?▼
Yes, the bidders are also requested to extend the validity of the Bid Security for the corresponding additional period.
What documentation is required when seeking an extension of bid validity?▼
The procuring officer must record the reasons for seeking an extension of bid validity. This documentation should be clear, concise, and justify the need for the extension.

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 7.6.2 of the Manual for Procurement of Goods, 2017, under what circumstances can a purchase organization request an extension of bid validity?

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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