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O&M/Procedure/976

Date 28/11/2011

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Subject : Measures to increase coverage of e-auction.
Objective : To optimize coverage of e-auction.
Scope

: Purchase and Project Contract Cases.

Measures
(i)

E-auction will be conducted for all the Purchase and Project Contract
Cases where :

The value of the case is more than Rs.10 lakhs.

The price is to be discovered through competitive bidding.

Number of qualified bidders are X+2 or more.

In case, e-auction is not resorted to for the cases qualifying under (i),
above, approval of HOMM / HO Proj. shall be obtained with recorded
reasoning.
(ii)

RFQ will have explicit mention that BSP reserves the right to
finalize Order / Contract against the Tender Enquiry either on the
basis of Price Bids submitted along with Techno commercial Bids
(including revised / updated price bid, if permitted) or by conducting
RA.

(iii) RFQ will include RA terms and conditions along with other applicable/
standard terms and conditions.
(iv)

While raising mandate for RA, the Tender/Purchase Committee (for


the purchase cases valuing more than Rs.10 lakhs, and less than
Rs.50 lakhs, the committee will consist Purchase Officer with
delegation to approve the case, representative Finance
Concurrence Group, Indenter and the dealing Purchase Officer),
will arrive on the list of techno commercially suitable bidders,
elimination of top few bidders (based on no. of qualified parties
available, no. of sources required etc ). Elimination of top few
bidders will be done only when they fall beyond 10% of the lowest
sealed bid received.
In MM context if there are X+5 or more technocommercially
acceptable bidders, then only elimination of top bidder(s) will be
done as decided by the Committee.
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(v)

The Purchase / Tender Committee shall deliberate and decide the


provisional SBP based on following factors :
-

(vi)

last purchase price, if any


departmental/ MECON/CET/BEDB estimate.
the lowest sealed bid received online.
market assessment given by the Service Provider (SP).
Reverse Auction will be conducted in two stages, by SP, at first
stage online sealed bids shall be called for facilitating to decide
Start Bid Price (SBP). Thereafter Start Bid Price shall be fixed as
per modality at 3 (v) above, and second stage Reverse Auction will
be conducted.
However, in Project Contract Turn Key cases where estimate is
given by consultant in sealed cover, the Start Bid Price will be
decided as lower of the lowest online sealed bid and the estimate
given by the consultant. This will be done after result of first stage
auction is communicated by SP, by the Officials of Project-Finance
and Proj.-Comml. after opening the consultants estimate.

(vii) The SP will conduct second stage of RA and submit RA Report,


Price break-up, Price Matching Report (for multi source ordering )
etc.
(viii) On receipt of the report :
a) The Committee will examine the wining bids for their
reasonableness or otherwise and make proposal for order placement
re-auction / retendering etc. The MM cases valuing upto Rs.50 lakhs
where L-1 is falling within acceptable awardable range shall be
processed for approval as per DOP by the dealing officer.
Where limited number of participants are there in R.A. the Committee
will have discretion to open hard bid of the L-1 bidder under approval
of the Competent Authority to assess the reasonableness of price(s).
b)

In case no bid received against RA, decision will be taken by the


committee to re-launch RA with revised strategy.

c) In case, price discovery fails even after 2/3 serial attempts of


R.A., it will be a discretion with the committee to open hard bids
under approval of the Competent Authority and process the case
suitably.
(IX) MIS will be sent to CEO, for the cases covered under (1) above
and not resorted through R.A. with recorded reasoning.
This issues with the approval of the Competent Authority.
Sd/( RAJNEESH CHANDRAKAR )
ASSTT.GENL.MANAGER (O&M)
Distribution

- All HODs
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