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Para 7.6 - Risk Mitigation | KartavyaDesk

Non-Consultancy Manual

Original Rule Text

Risks Mitigation proposed key experts, the proposal should be termed as non-responsive and rejected at the technical evaluation stage. 4. Evaluation of bids is subjective or leaves room for manipulation and biased assessments. Some TC members may not be independent or neutral or may have conflict of interest (COI). TC should give an undertaking at the appropriate time (as per para 7.2.4-3) that none of the members has any COI with the companies/agencies participating in the tender process. Any member having an COI with any company should refrain from participating in the TC. Some members of a TC may be subordinate to or related others in a strictly hierarchical organisation, so that they are not free to express independent views – such a situation must be avoided when constituting the TC. 5. Discriminating against a Best Value Bid: In case a bidder’s bid (not in the good books of the procuring entity) becomes the best value bid as per the evaluation criteria, some of the following actions may have risks of misuse. There is also a reverse risk in these actions if a favourite becomes best value bid: Mitigation for each type of risk is mentioned below. 6. Unwarranted retendering: Rejecting all bids and calling for retendering on the pretext of prices being high, change of specifications, budget not being available, and so on. Please refer to para 7.4.11 regarding safeguards against this. In case a procurement is rebid more than once, approval of one level above the CA may be taken. Please also see the complaint mechanism. 7. Sudden quantity reduction/increase or splitting of quantity work at the time of award: Many organisations have provisions for change/ splitting in the bid quantity at the time of award. Some organisations vary quantity even without such provisions Bid conditions must specify a limit beyond which originally announced quantity/scope cannot be reduced/increased. If parallel contracts are envisaged, clear criteria for the splitting may be specified in the tender documents beforehand. 8. Unwarranted negotiations: negotiations are called without justification. Sometimes a counter-offer is made to discourage lowest acceptable bidder. Normally, there should be no posttender negotiations. In certain exceptional situations, for example, procurement of proprietary items, items with limited sources of supply, and items where there is suspicion of a cartel formation, negotiations may

What This Means

Para 7.6 of the Manual for Procurement of Non-Consultancy Services focuses on mitigating risks during the procurement process. It highlights several potential pitfalls that can lead to unfairness, bias, or misuse of power. The rule aims to ensure transparency, fairness, and accountability in government procurement. It applies to all government departments and agencies involved in procuring non-consultancy services, and it affects everyone from the officers drafting tender documents to the members of the Technical Committee (TC) evaluating bids. The goal is to prevent situations where the procurement process is manipulated for personal gain or to favor certain bidders.

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

Key Points

  • •Technical Committees (TC) must declare any Conflict of Interest (COI) with participating companies.
  • •TC composition should avoid hierarchical relationships that could stifle independent opinions.
  • •Unwarranted retendering (rejecting all bids and re-inviting) requires higher-level approval after the first rebid.
  • •Quantity changes at the time of award must be within pre-defined limits specified in the tender documents.
  • •Post-tender negotiations are generally prohibited, except in specific circumstances like proprietary items or suspected cartel formation.

Practical Example

The Ministry of Textiles is procuring office supplies. Three companies, 'Stationery Solutions,' 'Paper Paradise,' and 'Ink Innovations,' submit bids. During the technical evaluation, it's discovered that Mr. Sharma, a member of the TC, owns shares in 'Paper Paradise.' According to Para 7.6, Mr. Sharma must declare this conflict of interest and recuse himself from evaluating 'Paper Paradise's' bid. Later, after evaluating the bids, the Ministry decides to reduce the initially tendered quantity of paper by 60% due to budget constraints. However, the tender document only allows for a maximum reduction of 20%. This reduction violates Para 7.6, and the Ministry must either adhere to the 20% limit or seek approval from one level above the Competent Authority (CA) to proceed with the larger reduction.

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

Frequently Asked Questions

What constitutes a 'Conflict of Interest' for a TC member?▼
A Conflict of Interest (COI) exists when a TC member has a personal or financial relationship with a company participating in the tender process that could potentially bias their judgment. This includes owning shares, being employed by, or having a close family member employed by the company.
What should I do if I suspect unwarranted retendering is occurring?▼
If you suspect unwarranted retendering, you should report your concerns to your superior officer and follow the established complaint mechanism within your organization. Remember that retendering more than once requires approval from one level above the Competent Authority (CA).
Are post-tender negotiations ever allowed?▼
Generally, post-tender negotiations are prohibited. However, they may be permissible in exceptional circumstances, such as when procuring proprietary items, items with limited sources of supply, or when there is suspicion of cartel formation. Any such negotiation must be properly justified and documented.
What happens if a TC member doesn't disclose a conflict of interest?▼
Failure to disclose a conflict of interest can lead to disciplinary action against the TC member. It can also invalidate the entire procurement process, potentially leading to legal challenges and reputational damage for the government organization.
How does Para 7.6 relate to the principles of transparency and accountability?▼
Para 7.6 directly promotes transparency and accountability by requiring disclosure of conflicts of interest, limiting unwarranted retendering, and controlling quantity changes. These measures ensure that the procurement process is fair, unbiased, and free from manipulation, thereby upholding the principles of good governance.

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 of the Manual for Procurement of Non-Consultancy Services, what action should a Technical Committee (TC) member take if they have a Conflict of Interest (COI) with a company participating in the tender process?

Related Rules

Para 3.2Manual for Procurement of Non-Consultancy Services, 2025 - Para 3.2 - Chapter 3Para 4.1.1Manual for Procurement of Non-Consultancy Services, 2025 - Para 4.1.1 - Chapter 3Para 4.2.3Manual for Procurement of Non-Consultancy Services, 2025 - Para 4.2.3 - Chapter 3Para 4.4Manual for Procurement of Non-Consultancy Services, 2025 - Para 4.4 - Chapter 3Para 6.8Manual for Procurement of Non-Consultancy Services, 2025 - Para 6.8 - Chapter 6

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