Use of only single/particular brand item in psu tenders
gupta
(Querist) 25 March 2012
This query is : Resolved
it is being increasingly seen that in construction and other works of public sector undertakings particular/single brands and their specifications are being specified in the tenders, though in the market several other brand owners equivalent to the particular brands specified are also available,the above leads to,(at the pretender stage)better pricing for the tendering company favoured by the single brand owner which ensures work to a particular tenderer, and other benefits to the department allowing use of single brand names,(at post tender stage) dictation of terms and condition on succesful tenderer by the owner of particular brand etc now my querry is;
1)is it allowed to specify single brand names in goverment/psu tenders?
2)what can be done to ensure participation of more than one brands at pre and post tendering stage.
ajay sethi
(Expert) 25 March 2012
what are facts of your case ? we are not replying to academic queries
Guest
(Expert) 25 March 2012
Dear Mr. Gupta,
You have raised really a very qood question! But the reality about the working procedures and rules on the issue put a great stumbling block on the efficient working of the really enterprising, honest and sincere authorities.
You would also have noticed that only a few tenders are received in response of open tenders even on all India basis, and in most of the cases tenders are pooled by the bidders by their mutual understandings.
You would also like to agree that different brands have different specifications and qualities that may not match with each other brand due to laws on patents & designs and copyright, etc.
In case more than one brand is specified in tender notice, every tenderer would try to quote for altoghether different brands thereby causing confusion and hardship for the tender evaluating committee to decide whether to recommend for any bid or to recommend for cancellation of tender, there being less than three tenders in each class of brand. Not only that the competent tender accepting authority may also be in a fix whether to award the tender to any one to start with the project or to cancel the tender to avoid any wrath of the CBI under the PC Act. Unnecessary public complaints and media attention cannot also be overruled due to non award of tender to the lowest bidder.
IN FACT, tendering process is an age old and totally obsolete process that needs extensively overhauling.
Processes to deal with the abuse of the tendering formalities are, however, there but the question arises, "who will bell the cat?" Needless to emphasize, that needs the guts of the authority employing such innovative processes against the set obssolete procedures of the Centre/ State/CVC.
Any innovative attempt at individual level even beyond and inch of the predetermined lines set by the Government of India/ State/ CVC is more than sufficient to raise the eyebrows of the vigilance agencies on receipt of frivulous complaints by the disgruntled lower cadre employees against the authorities, irrespective of how honest and efficient the tendering authority would have been altogether during his service career.
Knowing very well that the existing tendering process causes the cost to the exchquer to the tune of almost three times, the CVC/CBI start girding up their loins to destroy the careers of even very sincere and honest Officers from lowest to the top of the rung, which can be beyond anyone's expectations.
This observation duly stands supported by my practical experience in dealing with the Departmental Inquiries cases against the Government/PSU employees for the last more than 32 years.
Raj Kumar Makkad
(Expert) 25 March 2012
Though an academic discussion has been initiated by querist but despite of this Dhingra Sir has replied the issue very well and various valuable information has also been supplied meant for the knowledge of all of us.
gupta
(Querist) 25 March 2012
To start with, i wish to thank Dhingra Sir for the reply, now to take my querry to the next level i want to place the following facts;
A PSU called for public tenders for interior decoration under works contract, for their building,under which item rates were required to be quoted by the tenderers for various items,for which generic specifications were given in the bill of quantaties along with names of already approved vendors, mostly against every item two to three approved brand names were given to obtain competitive pricing.
However in one particular item of chairs, which constituted a major portion of the tender in terms of the total contract value, only one particular single make/ brand name with that brand's catalogue number was stipulated in the tender,inspite of the fact that there are three to four more chair manufacturers who are dealing in similar and equivalent chairs,with the result that after opening of tender it was found that all the tenderers have quoted diffrent rates for that particular brand meaning thereby that the particular brand owner must have given lower rates to its favoured tenderer and diffrent rate to others.now that the work has been awarded the particular chair manufacturer has announced increase in the rates of their products, and the contractor has now approached the psu to increase their rates due to increase in rates of single make item by the manufacturer. now my query remains
1)is it allowed to specify single brand names in goverment/psu tenders?can it be taken up with competition commision of india, or under MRTP act.
2)what can be done to ensure participation of more than one brands at pre and post tendering stage.
Guest
(Expert) 07 July 2012
The approved contractor does not have any right to increase the price of the product after award of tender irrespective of increase announced by the manufacturer, unless he had already included the condition in his bid document to raise the price of the product if raised by the mnufcturer.
About your queries, the reply is as follows:
1) It is the discretion of the principal to specify the brand of his choice or requirement irrespective of whether it is a Government, PSU or a Private organisation. No use of taking up case with the Competition Commission of India, or under MRTP Act.
2) At the pre-tendering stage, the bidder is free to quote any brand with full specification and justification of their product in lieu of of the specified brand. It is up to the discretion of the principal to be convinced on that and gets the tendering conditions modified suitably accordingly. BUT there is no scope of any modification at the post tendering stage.
