As per the circular issued by the minsitry, the bidding process will not be cancelled even if there is only one bidder for a highway project. “Lack of competition shall not be determined solely on the basis of the number of bidders,” it said.
"Even when only one bid is submitted, the process should be considered valid, provided the procurement was satisfactorily advertised and sufficient time was given for submission of bids, the qualification criteria were not restrictive and prices are reasonable in comparison to market value,” the ministry said in its circular dated August 28.
Regarding reasonableness of the prices, the circular said the evaluation committee may examine the rates taking into consideration the comparison with the similar contracts awarded elsewhere.
The purchase price of similar contracts may be updated taking into consideration inflation during the interim period, geographical conditions etc, it added.
The circular said the purchase price of similar contracts may also be corrected to match the carriage of materials required for the instant projects vis-a-vis carriage of materials in the project being compared.
In the circular, the ministry noted that it has become a practice among some procuring entities to routinely assume that open tenders which result in single bids are not acceptable and to go for re-tender as a safe course of action.
“This is not correct,” it said, arguing that re-bidding has a cost.
“Firstly the actual costs of re-tendering, secondly the delay in execution of the work with consequent delay in the attainment of the purpose for which the procurement is being done, and thirdly the possibility that the re-bid may result in a higher bid,” it added.
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