Road Ministry to states, agencies: Consider single bid for national highway projects

The Ministry said that even a single bid for the national highways should be considered if it is compliant with the conditions. “It has been decided that single bid received in open bidding will not be rejected provided the conditions are satisfied: i) the procurement was satisfactorily advertised and sufficient time was given for submission of bids; ii) the qualification criteria were not unduly restrictive; and iii) prices are reasonable in comparison to market values,” the circular stated.

The Evaluation Committee will examine the rates taking into consideration the comparison with the similar contracts awarded elsewhere to determine the reasonableness of the prices, the Ministry said. “The purchase price of similar contracts may be updated taking into consideration inflation during the interim period, geographical conditions, etc.,” it said, adding that the purchase price of similar contracts may also be corrected to match the carriage of materials required for the instant project vis-a-vis carriage of materials in the project being compared.

The Ministry cited an earlier circular dated October 29, 2021 of the Department of Expenditure under the Ministry of Finance, which stated 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. Re-bidding has costs: firstly, the actual cost of re-tendering; secondly, the delay in execution of the work with consequent delay in 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,” the Finance Ministry circular had said.