Finmin Clarification to Order (Public Procurement No.1) dated 23rd July 2020
Ministry of Finance
Department of Expenditure
Public Procurement Division
161, North Block,
24th July, 2020
Order (Public Procurement No. 3)
Clarification to Order (Public Procurement No.1) dated 23rd July 2020
Attention is invited to Paragraph 3(b) of the Order (Public Procurement No.1), under the heading “Transitional provisions” which reads as follows:
b) If the tendering process has crossed the first exclusionary qualificatory Stage: If the qualified bidders include bidders from such countries, the entire process shall be scrapped and initiated de novo. The de novo process shall adhere to the conditions prescribed in this Order.
It is hereby clarified that for the purpose of paragraph 3 (b), “qualified bidders” means only those bidders who would otherwise have been qualified for award of the tender after considering all factors including price, if Order (Public Procurement No. 1) dated 23rd July 2020 had not been issued.
2. If bidders from such countries would not have qualified for award for reasons unconnected with the said Order (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.
3. The following examples are given to assist in implementation of the Order.
Example 1: 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.
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.
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.
Joint Secretary (PPD)
Email ID: [email protected]
(1) Secretaries of All Ministries/ Departments of Government of India for information and necessary action. They are also requested to inform the clarification to all procuring entities.
(2) Secretary, Department of Public Enterprises with a request to immediately circulate this clarification among Public Enterprises.
(3) Chief Secretaries/ Administrators of Union Territories/ National Capital Territory of Delhi