Post tender rebate & forfeit of emd
eme
(Querist) 02 May 2012
This query is : Resolved
Ours is a government organisation.Recently, we have faced one problem in one of the tender.
After opening of the bid ,one of the bidder other than L1 had offered post tender rebate or variation in price. As per our purchase manual EMD shall be forfeited in such cases. But unfortunately, due to over sight, the clause was not incorporated in the tender documents.
Kindly advice me on this immediately.
ajay sethi
(Expert) 02 May 2012
if no suchh clause was incorporated in tender documents you cannot forfeit earnest money deposit merely because tenderer has offered some rebate
eme
(Querist) 02 May 2012
Suppose if it is incorporated inthe tender, can we initiate the action.
Kindly inform me what action shall be taken in such cases of ' offering post tender rebates' which will give undue advantage over L1.
Kindly reply immediately.
ajay sethi
(Expert) 02 May 2012
please go through CVC guidelines
POST TENDER NEGOTIATIONS
14.1 As per CVC guidelines circulated vide letter No.8(1)(h)/98(1) dt. 18.11.98,
post tender negotiations except in case of negotiations with L-1 are banned. In
continuation of these instructions, the following further clarifications were issued
vide letter No.98/ORD/1 dt. 15.3.99 :
(i) The Government of India has a purchase preference policy so far as
the public sector enterprises are concerned. It is clarified that the ban
on the post tender negotiations does not mean that the policy of the
Government of India for purchase preference for pubic sector should
not be implemented.
(ii) Incidentally, some organisations have been using the public sector as
a shield or as a conduit for getting costly inputs. This should also be
avoided.
• Despite the above instructions, there are instances of holding negotiations
with the select/all bidders by some organisations in gross violation of these
instructions. The instructions/guidelines circulated by CVC on the subject need to
be followed strictly.
eme
(Querist) 02 May 2012
Sir,
It is not post tender negotiations.
L2/L3 is offering rebates unilaterally after opening of price bids.
In that case, what action can be taken?
Pls reply me
ajay sethi
(Expert) 02 May 2012
inform other bidders that L 2 L3 is offering rebates . give them a chance to match the bid .
Guest
(Expert) 02 May 2012
It is an effort not only to stall the tendering process but also to belittle the position of the authorities on the part of the bidder, who has offered post tender rebate after opening of tenders and only after the rates of the lowest bid were made known to him.
2ndly, your presumption is not correct that this is not a case of post tender negotiation. It is his initiative to force you to compromise on negotiation with him. Once you accept his offer that itself would fall in to the scope of negotiation by accepting his offer, as a matter of negotiation and compromise on his terms/ rates.
3rdly, if you accept the proposal of the said bidder with rebate, the L1 would have the cause of complaint and is likely to vent his grievance before the CVC by making a complaint thereby making the authorities fall in line for vigilance case in the offing, as your own tender document is faulty when you have failed to include the condition of the forfieture of EMD in such a case.
You will however have to follow your purchase policy, as prescribed in the puchase manual and have to accept the bid of L1 by appropriately justifying your stand. Of course, you would not be able to forfiet the EMD, as the requisite clause was omitted in the Tender Document.
Shonee Kapoor
(Expert) 04 May 2012
I concur with Ld. Dhingra Ji.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
