Para 7.4 - Multiple L1 Bidders | KartavyaDesk

Original Rule Text

Manual for Procurement of Non-Consultancy Services, 2025 The bid for a schedule shall not be considered if the complete requirements prescribed in that schedule are not included in the bid; 6. If any bidder offers conditional discounts/ rebates in his bid or suo-motu discounts and rebates after the Bid Opening (techno-commercial or financial), such rebates/ discounts shall not be considered for ranking the offer. But if such a bidder does become L-1 without discounts/ rebates, such discounts/ rebates shall be availed and incorporated in the contracts; 7. Unless announced beforehand, the quoted price shall not be loaded based on deviations in the commercial conditions. If it is so declared, such loading of a financial bid shall be done as per the relevant provisions; 8. As per policies of the Government, from time to time, the Procuring Entity reserves its option to give purchase preferences to eligible categories of Bidders as indicated in the Tender Document. 9. Financial evaluation of Bids shall include and consider the following taxes/ duties, as per para 6.2: a) in the case of Services performed in India or incidental goods of foreign origin already located in India, GST & other similar duties, which shall be contractually payable, on the Services and incidental Goods, if a contract is awarded on the bidder; b) The offers shall be evaluated based on the GST rate quoted by each bidder, and the same shall be used for determining the inter-se ranking. The Procuring Entity shall not be responsible for any misclassification of HSN Number or incorrect GST rate if quoted by the bidder. Any increase in GST rate due to misclassification of HSN number shall have to be absorbed by the service provider; and c) If GST is quoted extra, but with the provision that it shall be charged as applicable at the time of delivery, the offer shall be evaluated for comparison purposes by loading the maximum existing rate of GST for the product/ HSN code. 10. Price Variation: If the bids have been invited on a variable price basis, they will be evaluated, compared, and ranked based on the position prevailing on the bid submission deadline and not based on any future date. If a Bidder submits a firm price quotation against the requirement of a variable price quotation, that bid shall be prima facie acceptable and considered further, taking the price variation asked for by the Bidder as nil. 11. Ambiguous Financial bid: If the financial bid is ambiguous and leads to two equally valid total price amounts, it shall be rejected as nonresponsive. 12. Instances of Multiple L1s: Rarely, there may be a tie at the lowest bid (L-l) position between two or more start-up/ non-start-up bidders. However, the method of selection of successful contractor in case of multiple L1 should be decided prior to issue of tender. It must be first determined whether it is a case of Cartel formation or anti-competitive practices, as per para 7.4.9 below, and if so, it shall be dealt with accordingly. If this is not a case of cartel formation, the following sequence of preference shall be adopted while considering the award of the contract: a) For Tender issued through NIC Portal/ manual basis: i) In case one of the L1 bidders is MSE owned by SC/ST or a Women Entrepreneur, then an order shall be placed on such bidder. ii) If one of the L1 bidders is MSE, then an order shall be placed on such bidders.

What This Means

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

Key Points

• •Addresses situations with multiple L1 bidders (tie at the lowest bid).
• •Mandates investigation into potential cartel formation or anti-competitive practices.
• •Requires a pre-defined method for selecting a successful contractor in case of multiple L1s, decided before tender issuance.
• •Prioritizes fair competition and prevents artificially inflated prices.
• •Deals with cartel formation or anti-competitive practices according to established procedures.

Practical Example

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

Frequently Asked Questions

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