Para 7.3 - Bid Deviations | KartavyaDesk
Original Rule Text
4. Deviations/ Reservations / Omissions - Substantive or Minor: a) During the evaluation of Bids, the following definitions apply: i) “Deviation” is a departure from the requirements specified in the Tender Document; ii) “Reservation” is the setting of limiting conditions or withholding from complete acceptance of the requirements specified in the Tender Document; and iii) “Omission” is the failure to submit part, or all the information or documentation required in the Tender Document. b) Substantive Deviations: A deviation/ reservation/ omission from the requirements of the Tender Document shall be considered as a substantive deviation as per the following norm, and the rest shall be considered as Minor deviation: i) which affects in any substantive way the scope, quality, or performance of the product; ii) which limits in any substantive way, inconsistent with the Tender Document, the Procuring Entity's rights, or the Bidder's obligations under the contract; or iii) Whose rectification would unfairly affect the competitive position of other Bidders presenting substantively responsive Bids. c) The decision of the Procuring Entity shall be final in this regard. Bids with substantive deviations shall be rejected as nonresponsive. d) Variations and deviations and other offered benefits (techno-commercial or financial) above the scope/ quantum of the services specified in the Tender Document shall not influence evaluation Bids. If the bid is otherwise successful, such benefits shall be availed by the Procuring Entity, and these would become part of the contract. e) During the preliminary examination, some minor infirmity and/or irregularity and/or nonconformity may also be found in some bids. Such minor issues could be a missing pages/ attachment or illegibility in a submitted document; non-submission of requisite number of copies of a document. f) Considering Minor Deviations: There have also been cases where the bidder submitted the amendment Bank Guarantee but omitted to submit the main portion of the document. The court ruled that this was a minor irregularity. The court has consistently taken the view that the procuring entity is entitled to consider and allow minor deviations that do not amount to substantive deviations. The Procuring Entity reserves the right to accept bids with such minor issues provided they do not constitute any substantive deviation, do not have a fiscal impact, do not prejudice or affect the ranking order of the bidders and do not grant the bidder any undue advantage vis-àvis other bidders and the Procuring Entity. Wherever necessary, the Procuring Entity shall convey its observation on such ‘minor’ issues to Bidder as per para 7.3.2 below. If the Bidder does not reply by the specified date or gives an evasive reply without clarifying the point at issue in clear terms, that bid shall be liable to be rejected as nonresponsive.
What This Means
Para 7.3 of the Manual for Procurement of Non-Consultancy Services deals with how to handle deviations, reservations, and omissions in bids submitted by vendors. It's all about ensuring fairness and transparency in the bidding process. A 'deviation' is when a bid doesn't quite meet the tender's requirements, a 'reservation' is when a bidder sets conditions, and an 'omission' is when they forget to include necessary information. The rule distinguishes between 'substantive' and 'minor' deviations. Substantive deviations are big deals that could affect the quality, scope, or fairness of the process, while minor deviations are small errors or missing information that don't significantly impact the bid.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Defines 'deviation,' 'reservation,' and 'omission' in the context of bid evaluation.
- •Distinguishes between 'substantive' and 'minor' deviations.
- •Bids with substantive deviations are rejected.
- •Minor deviations may be considered if they don't affect fairness or the ranking of bidders.
- •The Procuring Entity has the final say on whether a deviation is substantive or minor.
Practical Example
The Ministry of Electronics and Information Technology (MeitY) issued a tender for providing data entry services. Company A's bid included a clause limiting their liability to ₹50,000, which was inconsistent with the tender document's requirement for unlimited liability. This is considered a substantive deviation because it limits the Procuring Entity's rights. Company B, on the other hand, forgot to include a copy of their ISO 9001 certification, but provided all other required documents. MeitY contacted Company B to submit the missing certification. If Company B submits the certification promptly, MeitY can consider their bid, as the omission was minor and easily rectified.
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's deviation is considered 'substantive'?▼
Can a Procuring Entity ignore minor deviations?▼
What happens if a bidder doesn't respond to a request for clarification on a minor deviation?▼
How does Para 7.3 ensure fairness in the bidding process?▼
What is the difference between a deviation and an omission?▼
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 7.3 of the Manual for Procurement of Non-Consultancy Services, which of the following constitutes a 'reservation' in the context of bid evaluation?
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