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Para 5.6.8 - Tender Cancellation & Re-tendering | KartavyaDesk

WORKS_MANUAL

Original Rule Text

a. If the quantity and quality of requirements have changed substantially or there is an un-rectifiable infirmity in the bidding process; b. when none of the tenders is substantially responsive to the requirements of the Procurement Documents; c. none of the technical Proposals meets the minimum technical qualifying score; d. If effective competition is lacking. However, lack of competition shall not be determined solely on the basis of the number of Bidders. (Please refer to para above also regarding receipt of a single offer). e. the Bids’/ Proposals’ prices arfe substantially higher than the updated cost estimate or available budget; f. In case, the bidder, whose bid has been found to be the lowest evaluated bid withdraws or whose bid has been accepted, fails to sign the procurement contract as may be required or fails to provide the security as may be required for the performance of the contract or otherwise withdraws from the procurement process, the Procuring Entity shall re-tender the case.

What This Means

Para 5.6.8 of the Works Manual outlines specific situations where a government department or agency must cancel a tender process and re-tender the project. This rule is designed to ensure fairness, transparency, and value for money in government procurement. It essentially says that if the initial bidding process is flawed, if the bids received are not suitable, or if the prices are too high, the department must start the process again to get better results. This protects public funds and ensures that projects are awarded to qualified bidders at reasonable prices.

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

Key Points

  • •Tender must be cancelled and re-tendered if the requirements change significantly or the bidding process has a major flaw.
  • •Re-tendering is required if no bids meet the minimum technical requirements or are substantially responsive to the procurement documents.
  • •Lack of effective competition, indicated by factors beyond just the number of bidders, necessitates re-tendering.
  • •If bid prices are significantly higher than the updated cost estimate or available budget, the tender must be cancelled and re-tendered.
  • •If the lowest bidder withdraws or fails to sign the contract or provide the required security, the project must be re-tendered.

Practical Example

The Department of Irrigation issued a tender for the construction of a new canal, with an estimated cost of ₹50 crore. After receiving bids, it was discovered that the soil testing report used in the original tender document was flawed, making the design specifications unrealistic. Furthermore, all the received bids quoted prices ranging from ₹75 crore to ₹85 crore, significantly exceeding the budget. Based on Para 5.6.8(a) and (e), the department's tender committee decided to cancel the tender and revise the specifications based on a new soil testing report. They will then re-tender the project with the corrected specifications and a revised budget.

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 'substantial change' in requirements that necessitates re-tendering?▼
A substantial change refers to alterations in the scope, specifications, or quantity of the project that significantly impact the cost or feasibility of the original tender.
If only one bid is received, does that automatically mean there is a lack of competition?▼
Not necessarily. The rule states that the lack of competition should not be determined solely on the number of bidders. Other factors, such as the market conditions and the complexity of the project, should also be considered. Refer to the relevant paragraphs above Para 5.6.8 for further guidance on single offers.
What happens if the lowest bidder withdraws after being selected but before signing the contract?▼
According to Para 5.6.8(f), the Procuring Entity shall re-tender the case.
How is 'substantially higher' determined when comparing bid prices to the updated cost estimate?▼
The definition of 'substantially higher' is not explicitly defined in the rule. It is up to the procuring entity to determine what constitutes a significant deviation from the estimated cost, considering factors like market conditions and the nature of the project. A pre-defined percentage threshold for cost escalation can be defined in the procurement manual.
Does this rule apply to all types of government procurement?▼
This rule applies to works contracts as defined within the Works Manual. Other types of procurement may have similar but distinct rules.

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

Under which of the following circumstances, as per Para 5.6.8 of the Works Manual, is a procuring entity MANDATED to re-tender a project?

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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