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Para 4.5 - Bidder Eligibility | KartavyaDesk

WORKS_MANUAL

Original Rule Text

4.5 Eligibility and Qualifications of Bidders 4.5.1 Eligibility of Bidders i) All eligible bidders meeting the eligibility criteria as defined in ITB can participate in the tender. The applicant should be a private or government-owned legal entity. ii) Bidder should have valid registration with Employees Provident Fund organization under ‘EPF and Miscellaneous Provisions Act, 1952’. iii) For package size exceeding certain values [say - Rs. 10 (ten) crore], Joint Ventures may be allowed. Maximum number of partners in JV shall be limited (say – three). In case of JV, all the partners shall be jointly and severally liable for the successful completion of the work. iv) A firm that has been engaged by Ministry/ Department to provide consultancy services for the preparation or implementation of a project, and any of its affiliates (associates, subsidiary, JV partner), shall not be eligible for subsequently providing goods or works (other than a continuation of the firm's earlier consultancy services) for the same project. v) A firm determined non-performing by the Procuring Entity shall not be eligible to bid during the period so determined. vi) The bidder must not have in his employment: a) The near relations (defined as first blood relations, and their spouses, of the bidder or the bidder's spouse) of persons involved in decision making in the procurement as listed in the Appendix to ITB. b) Without Government permission, any person who retired as gazetted officer within the last two years of the rank and from the departments listed in the Appendix to ITB.

What This Means

Para 4.5 of the Works Manual outlines who can participate in government tenders. Essentially, it sets the ground rules for eligibility. Any private or government-owned company that meets the specific requirements detailed in the Invitation to Bid (ITB) can apply. This section ensures fairness and prevents conflicts of interest. It also mandates compliance with labor laws, specifically requiring registration with the Employees Provident Fund Organisation (EPFO).

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

Key Points

  • •Bidders must meet eligibility criteria defined in the Invitation to Bid (ITB).
  • •Valid EPFO registration is mandatory.
  • •Joint Ventures (JVs) are allowed for larger projects (e.g., exceeding Rs. 10 crore), with a limited number of partners (e.g., three), who are jointly and severally liable.
  • •Consultants involved in project preparation cannot bid for subsequent works on the same project (except for continuation of consultancy).
  • •Firms deemed non-performing are ineligible to bid during the determined period.

Practical Example

ABC Construction, a private company, wants to bid on a government road construction project worth Rs. 15 crore. To be eligible under Para 4.5, ABC Construction must first ensure they meet all the criteria outlined in the ITB document. They must also have a valid registration with the Employees Provident Fund Organisation (EPFO). Since the project value exceeds Rs. 10 crore, ABC Construction could form a Joint Venture with XYZ Builders and PQR Infrastructure, but they must ensure the JV agreement clearly states that all three partners are jointly and severally liable for the project's successful completion. If ABC Construction had previously provided consultancy services for the project's design, they would be ineligible to bid on the construction contract (unless it's a continuation of their consultancy).

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 'jointly and severally liable' mean in the context of a Joint Venture?▼
It means that each partner in the JV is responsible for the entire project. If one partner fails to fulfill their obligations, the government can hold any or all of the other partners responsible for the entire debt or obligation.
If a company was involved in the initial feasibility study of a project, can they bid on the construction tender?▼
Generally, no. Para 4.5 aims to prevent conflicts of interest. A company that helped design the project should not also be responsible for building it, except if the new tender is a continuation of the initial consultancy.
What happens if a bidder is found to have near relatives working in the procuring entity?▼
The bidder will be disqualified. Para 4.5 explicitly prohibits employing near relatives of decision-makers in the procurement process to ensure fairness and prevent nepotism.
Where can I find the list of departments and ranks for the restriction on employing retired gazetted officers?▼
The specific departments and ranks are listed in the Appendix to the Invitation to Bid (ITB). Always refer to the ITB for the most up-to-date information.
What constitutes a 'non-performing' firm?▼
A 'non-performing' firm is one that the Procuring Entity (the government department issuing the tender) has determined to have failed to meet its contractual obligations in a previous project. The specific reasons for being deemed non-performing will be documented by the Procuring Entity.

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 4.5 of the Works Manual, which of the following is a mandatory requirement for a bidder to be eligible for a government tender?

Related Rules

Para 3.2.4Manual for Procurement of Works, 2022 - Para 3.2.4 - Chapter 3Para 3.5.13Manual for Procurement of Works, 2022 - Para 3.5.13 - Chapter 4Para 3.2.6Manual for Procurement of Works, 2022 - Para 3.2.6 - Chapter 3Para 4.10Manual for Procurement of Works, 2022 - Para 4.10 - Chapter 4Para 4.11Manual for Procurement of Works, 2022 - Para 4.11 - Chapter 4

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