Para 5.5 - Bid Deviations | KartavyaDesk
Original Rule Text
constitute any material deviation and do not have significant financial impact and, also, would not prejudice or affect the ranking order of the price bid. Exceptions/ deviations should not grant the tenderer any undue advantage vis-à-vis other tenders and Procuring Entity. iii) Evaluation of Commercial Conditions: The TC will also evaluate the commercial conditions quoted by the tenderer to confirm that all terms and conditions specified in the GCC/ SCC have been accepted without reservations by the tenderer. Only minor deviations may be accepted/ allowed, provided these do not constitute material deviations without financial impact and do not grant the tenderer any undue advantage vis-à-vis other tenders and Procuring Entity. iv) Considering Minor Deviations: Bids which are not materially deviated, may be considered substantially responsive. Court has consistently taken a view that procuring entity is entitled to consider and allow minor deviations, which do not amount to material deviations. A material deviation, reservation, or omission which should not be waived are those that: i) Affects, in any substantial way, the scope, quality or performance of the goods and related services specified in the contract; ii) Limits, in any substantial way, inconsistent with the tendering documents, the procuring entity's rights or the tenderer's obligations under the contract; or iii) If rectified, would unfairly affect the competitive position of other tenderers quoting substantially responsive tenders. v) Declaration of Technically Compliant Bidders: If it is a multiple envelope tender, then the TC prepares a recommendation of techno-commercial bid (Annexure 3) to declare successful bidders. In such cases, after the approval of CA, the results of the Techno-commercial bid evaluation are to be announced (including informing the failed Bidders). Price bids are opened in the presence of technically suitable bidders, who are willing to attend the bid opening, at a pre-publicised date, time and place or on the portal in case of e-procurement. In single envelope/ cover tender, TC proceeds to evaluate the price aspects without a reference to CA at this stage.
What This Means
Para 5.5 of the Works Manual deals with how to handle deviations (or differences) in the bids received during a tendering process. Essentially, it says that the Tender Committee (TC) can accept minor deviations in bids, but only if these deviations don't significantly change the project's scope, quality, or performance, and don't give any bidder an unfair advantage. The goal is to ensure fairness and transparency in the bidding process while still allowing for some flexibility. This rule applies during the evaluation stage of tenders, specifically when the TC is reviewing the commercial conditions and technical specifications of the bids. It directly affects all government employees involved in the procurement process, particularly those on the Tender Committee, as well as all companies or individuals submitting bids for government projects.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Minor deviations in bids can be accepted if they don't have a significant financial impact or affect the ranking order.
- •Deviations should not grant any tenderer an undue advantage.
- •The Tender Committee (TC) evaluates commercial conditions to ensure compliance with GCC/SCC terms.
- •Material deviations that affect scope, quality, or unfairly impact other tenderers cannot be waived.
- •Technically compliant bidders are declared after the TC's recommendation and approval from the Competent Authority (CA).
Practical Example
The Ministry of Rural Development issued a tender for constructing a rural road. Company A submitted a bid that slightly deviated from the specified cement grade, proposing a grade that was marginally better but readily available. The Tender Committee, led by Mr. Sharma, assessed the deviation. They determined that the proposed cement grade, while different, did not significantly impact the road's quality or longevity and didn't give Company A a price advantage. Furthermore, it didn't affect the competitive position of other bidders. Therefore, the TC accepted the minor deviation. However, if Company B had proposed a significant change to the road's width, making it narrower and cheaper to build, that would be considered a material deviation and would likely lead to disqualification.
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 'material deviation'?▼
Who decides whether a deviation is 'minor' or 'material'?▼
What happens if a bid contains a material deviation?▼
Can a procuring entity negotiate with a bidder to remove a deviation?▼
What is the role of the Competent Authority (CA) in the bid evaluation process?▼
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 5.5 of the Works Manual, which of the following conditions must be met for a minor deviation in a bid to be considered acceptable?
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