Para 3.0 - Public Procurement Order | KartavyaDesk
Original Rule Text
14. Clarification to Order (Public Procurement No.1) dated 23rd July 202065 a) For the purpose of (2)(b) above, “qualified bidders” means only those bidders would otherwise have been qualified for award of the tender after considering all factors including price, if the Order (Public Procurement No.1) dated 23rd July 2020 had not been issued. b) If bidders form such countries would not have qualified for award for reasons unconnected with the said Orders (for example, because they do not meet tender criteria or their price bid is higher or because of the provisions of purchase preference under any other order or rule or any other reason) then there is no need to scrap the tender/ start the process de novo. c) The following examples are given to assist in implementation of the Order i. Example l: Four bids are received in a tender. One of them is from a country which shares a land border with India. The bidder from such country is found to be qualified technically by meeting all prescribed criteria and is also the lowest bidder. In this case, the bidder is qualified for award of the tender, except for the provisions of the Order (Public Procurement No. 1) dated 23rd July. In this case, the tender should be scrapped and fresh tender initiated. ii. Example 2: The facts are as in Example 1, but the bidder from such country, though technically qualified is not the lowest because there are other technically qualified bidders whose price is lower. Hence the bidder from such country would not be qualified for award of the tender irrespective of the Order (Public Procurement No. 1) dated 23rd July 2020. In such a case, there is no need to scrap the tender. iii. Example 3: The facts are as in Example 1, but the bidder from a country which shares a land border with India, though technically qualified, is not eligible for award due to the application of price preference as per other orders/ rules. In such a case, there is no need to scrap the tender. Example 4: Three bids are received in a tender. One of them is a bidder from a country sharing a land border with India. The bidder from such a country does not meet the technical requirements and hence is not qualified. There is no need to scrap the tender.
What This Means
Para 3.0 of the Works Manual clarifies the implementation of Order (Public Procurement No. 1) dated July 23, 2020, regarding bidders from countries sharing a land border with India. Essentially, it explains when a tender needs to be scrapped and re-initiated due to this order. The rule states that if a bidder from such a country is technically qualified and the lowest bidder, but is disqualified *only* because of the July 2020 order, then the tender must be scrapped and restarted. However, if the bidder is disqualified for any other reason (e.g., failing to meet technical criteria, higher price compared to other qualified bidders, or application of price preference rules), then the tender does *not* need to be scrapped.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Applies to tenders where bidders are from countries sharing a land border with India.
- •If a bidder is disqualified *solely* due to the July 2020 order, the tender must be scrapped.
- •If a bidder is disqualified for *any other* reason (technical, price, preference rules), the tender does not need to be scrapped.
- •The rule aims to ensure fair competition while adhering to national security concerns.
- •Focus is on *why* the bidder is disqualified, not just *that* they are disqualified.
Practical Example
The Ministry of Road Transport and Highways issued a tender for the construction of a highway section. Three bids were received: one from 'InfraBuild Ltd.' (India), one from 'BorderCon Corp.' (a company based in a country sharing a land border with India), and one from 'GlobalRoads Inc.' (USA). BorderCon Corp. submitted the lowest bid and met all technical specifications. However, due to the Public Procurement Order No. 1, BorderCon Corp. was initially deemed ineligible. According to Para 3.0, because BorderCon Corp. was the lowest qualified bidder *but for* the Public Procurement Order, the tender must be scrapped and re-initiated. If, however, InfraBuild Ltd. had been the lowest bidder, or if BorderCon Corp. had failed to meet the technical specifications, the tender would *not* need to be scrapped.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'qualified bidder' mean in this context?▼
If a bidder from a bordering country is the lowest, but another domestic bidder is eligible for price preference, do we scrap the tender?▼
What if the bidder from the bordering country is a joint venture with an Indian company?▼
Where can I find the original Public Procurement Order No. 1 dated 23rd July 2020?▼
Does this rule apply to all types of government procurement?▼
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 3.0 of the Works Manual, which order is being clarified regarding public procurement from countries sharing a land border with India?
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