The stipulation of minimum eligibility criteria for open tenders above Rs 10 lakhs as given by Sudhir Chandra committee needs some clarification.
The executives may sometime combine two-three works and float an open tender for combined works. The reasons may be like ease of contract management (e.g. when number of works are there), or economies of scale since single firm will be doing a large value work. Certain situations mentioned below need some delibration.
1.        If all the works combined are individually of value less than Rs 10 lakh but when combined, the value is more than Rs 10 lakh.
2.        One work is less than 10 lakh and the other work costs more than Rs 10 lakh.
3.        Both/all works are more than 10 lakh Rs.
Do we insert the eligibility criteria in case 1 & 2 above? If we do, then isnt it going to restrict competition thereby leading to higher rates.
For case 3 the eligibility criteria will have to be inserted since both individually and as well as combined, the tender value will be more than Rs 10 lakh. However, if the tenders are floated individually then more parties would be fulfilling the eligibility criteria than when we combine the work. In this case also by combining the work competition is getting restricted.
Is there any clarification given on combining of works?
Rahul Kapoor
ADFM Ranchi
The executives may sometime combine two-three works and float an open tender for combined works. The reasons may be like ease of contract management (e.g. when number of works are there), or economies of scale since single firm will be doing a large value work. Certain situations mentioned below need some delibration.
1.        If all the works combined are individually of value less than Rs 10 lakh but when combined, the value is more than Rs 10 lakh.
2.        One work is less than 10 lakh and the other work costs more than Rs 10 lakh.
3.        Both/all works are more than 10 lakh Rs.
Do we insert the eligibility criteria in case 1 & 2 above? If we do, then isnt it going to restrict competition thereby leading to higher rates.
For case 3 the eligibility criteria will have to be inserted since both individually and as well as combined, the tender value will be more than Rs 10 lakh. However, if the tenders are floated individually then more parties would be fulfilling the eligibility criteria than when we combine the work. In this case also by combining the work competition is getting restricted.
Is there any clarification given on combining of works?
Rahul Kapoor
ADFM Ranchi
