Para 7.2.7 — NONCONSULT_MANUAL

2. Sometimes, against advertised/limited tender cases, the procuring entity may not receive enough bids and/or after analysing the bids, ends up with only one responsive bid – a situation referred to as ‘Single Offer.’ As per Rule 173

(xxi) of GFR, 2017, such situation of ‘Single Offer’ is to be treated as Single Tender. It has become a practice among some procuring entities to routinely assume that open tenders which result in single bids are not acceptable, and to go for re-tender as a ‘safe’ course of action. This is not correct. Retendering has costs: firstly, the actual costs of retendering; secondly, the delay in execution of the work with consequent delay in the attainment of the purpose for which the procurement is being done; and thirdly, the possibility that the re-bid may result in a higher bid71. Even when only one Bid is submitted, the contract can be placed provided following conditions are satisfied:

a) The procurement was satisfactorily advertised, and sufficient time was given for submission of bids. b) The qualification criteria were not unduly restrictive; and c) Prices are reasonable in comparison to market values.

7.2.7. Consideration of Lack of Competition in OTE/ GTE and LTE (Rule 173 (xx), and

(xxi) of GFR 2017): 1. The number of bids received, which can indicate adequate competition, depends on the parameters of procurement (value, specification, mode of procurement, tendering system, etc.) and the market situation. This has to be judged by the Tender Committee. However, less than three independent bids (without suspicion of the cartel) may indicate a lack of competition. TC must record a paragraph in its report about the adequacy or otherwise of competition in the tender.

7.2.8. Tender Committee Recommendations/Report 1. The TC must make formal recommendations (Annexure 6) for the award of the contract to the bidder whose bid has been determined to be substantially responsive and the lowest evaluated bid, provided further that the bidder is determined to be qualified to perform the contract satisfactorily and his credentials have been verified. 2. It is a good practice for TC to spell out salient terms and conditions of the offer

(s) recommended for acceptance. The TC should also ensure that any deviation/variation quoted by the service provider in his bid is not left undiscussed and ruled upon in the recommendations; otherwise, the service provider may delay acceptance of the contract. These recommendations are submitted for approval to the tender accepting authority. 3. Since a nominee of Financial Adviser of the Department is usually a member of the Tender Committee, there is no need for the CA to consult the FA of the Department before accepting the TC recommendations. In any purchase decision, the responsibility of the CA is not discharged merely by selecting the cheapest offer or accepting TC recommendations but by ensuring whether: a) Offers have been invited in accordance with this manual and after following fair and reasonable procedures in prevailing circumstances; b) He is satisfied that the selected offer will adequately meet the requirement for which it is being procured; c) The price of the offer is reasonable and consistent with the quality required; and d) The accepted offer is the most appropriate taking all relevant factors into account in keeping with the standards of financial propriety.

Manual for Procurement of Non-Consultancy Services, 2025 3. However, as far as delegation/schedule of procurement powers (SoPP, refer Annexure 2) is concerned, competent authority would be as in Single tender mode. In case of price not being reasonable, negotiations (being L1) or retender may be considered as justifiable.

4. Unsolicited offers against LTEs should be ignored; however, Ministries/Departments should evolve a system by which interested firms can register and bid in next round of tendering. However, under the following exceptional circumstances, these may be considered for acceptance at the next higher level of competency:

a) Inadequate competition b) Non-availability of suitable quotations from registered contractors c) Urgent demand and capacity/ capability of the firm offering the unsolicited being known, etc.

4. After the acceptance of these recommendations by the tender accepting authority, the Letter (Notification) of Award (LoA) can be issued.