b5.21-annulment of bidding process and re-tendering.pdf
TRANSCRIPT
‘Works & Procurement Policy and Procedure’ Section-B Page 154 of 140 Volume – I Pre-award (Introduction and Pre-award Sections)
B5.21 Annulment of Bidding Process and Re-tendering:
B5.21.1 Bidding document shall contain a provision that the Owner reserves the right
to annul the bidding process at any time prior to award of Contract including
rejection of any or all bids after the same has been received, without thereby
incurring any liability to the affected bidder or bidders or any obligation to
inform the affected bidder or bidders of the ground of the Owner’s action. In
case circumstances warrant annulment of bidding process, before the deadline
for bid submission, a ‘general notification’ to this effect shall be issued
through press advertisement (in case of open tender invited through press
advertisement) and bidders, who have been issued the bidding documents, shall
also be intimated separately and bids, if any, received by that time shall be
returned. In case circumstances warrant annulment of bidding process, after
deadline for submission of bids but before opening of bids, the bidders who
have been issued the bidding documents shall be intimated accordingly and the
bids received shall be returned. However, once the bids are opened, the
recourse under this provision to reject all the bids and to go in for re-tendering
will be justified only as the last resort, recording adequate justification for
such action.
B5.21.2 If higher prices are obtained, all bids can be rejected. Situation where higher
prices quoted by the bidders warrant rejection of bids, shall be dealt with as
explained hereunder:
B5.21.2.1 If a cartel formation is suspected as the reason for higher prices, all the bids
shall be straight away rejected and re-tendering shall be resorted to.
B5.21.2.2 In all such cases, where no cartel formation is suspected but prices are still on
higher side, negotiation with lowest evaluated bidder shall be held to bring
down the prices to a satisfactory and reasonable level. If satisfactory and
‘Works & Procurement Policy and Procedure’ Section-B Page 155 of 140 Volume – I Pre-award (Introduction and Pre-award Sections)
reasonable reduction in prices is not achieved, all the bids may be rejected and
re-tendering may be resorted to.
While resorting to re-tendering, wider advertisement may be considered in
cases where higher prices are apparently on account of lack of competition.
Wherever, apparently, there is no lack of competition, re-tendering will be
resorted to either through snap bidding from the parties who have earlier
submitted their offer or through normal tendering process depending on the
facts and circumstances, specially the time schedule available for
implementation of the project, with a provision that in case of snap bidding,
revised bid price cannot be higher than the initial bid price. Wherever it is
possible, the bidders shall be asked to indicate only the reduction in their initial
bid price, during snap bidding.
B5.21.3 If there is a change in BOQ, after opening of bids, and the same necessitates re -
tendering as per methodology described in para B5.10, snap bidding may be
resorted to by inviting fresh bids with changed BOQ from only those firms that
purchased the bidding documents in the first instance. The award of contract
under this procedure shall be treated as a case of award under the same mode
of tendering, as adopted earlier, for the purpose of Delegation of Power.
B 5.21.4 If there is postponement of project execution with the revised schedule being
uncertain, thereby requiring deferment of award of contract for the package(s),
re-tendering will be resorted to as per normal tendering process.
B5.21.5 Rejection of any or all the bids, for reasons whatsoever, shall be with the
approval of the authority competent to award the particular package. However,
if the approval of award falls within the powers of sub-committee/ Board of
directors, the rejection of bids shall be with the approval of CMD. The
‘Works & Procurement Policy and Procedure’ Section-B Page 156 of 140 Volume – I Pre-award (Introduction and Pre-award Sections)
proposal for annulment of bidding, after the bids are opened, shall be processed
by the tender committee through Contracts, Indenting and Finance Depts., for
the approval of the Competent Authority. In all other cases, the proposal will
be processed by Contracts Co-ordintor.