11.0 Brief Introduction:

In a tender for the procurement of Capital items, a Private Limited firm submitted experience certificate of Partnership Firm claiming its subsidiary Company.

11.1 Back Ground:

For the procurement of Capital items, a Private Limited firm participated as an Authorized dealer of OEM. However, for Pre-Qualification, Private Limited firm submitted experience certificate of Partnership Firm claiming its subsidiary Company. It wasobserved that the Private Limited firm was formed by two directors of PartnershipFirm.

It was noted that the bidder was a Private Limited Company and same cannot be treated as subsidiary of partnership firm, as the partnership firms have no legal entity”.

The Bidder, Private Limited firm was accepted by TNC, Commercial & Financial Executives, however same was rejected by Approving Authority.

11.2 Implementation:

The following Systemic Improvements were suggested by Vigilance Department.

(i) Pre-Qualification Criteria (PQC) with reference to OEM/Authorized Dealer be further clarified in the tender in accordance with the Government guidelines promulgated vide Manual for Procurement of Goods – 2017 by Ministry of Finance, Department of Expenditure.

(ii) After conclusion of TNC and CNC, if there is techno-commercial rejection of any offer, the price bid may be opened only after giving some time (say 1-2 days) to the concerned bidder so that he can respond/come back with his version, if any.

(iii) Though generally MDL discourage advance payment, there is a provision for advance payment, provided the firm accepts interest bearing advance and submits a Bank Guarantee for 110% of advance amount. This option can be utilized in case of lack of competition. The tender condition needs to be framed accordingly. In case of advance payment is not at all acceptable, the same may be incorporated as part of the bid rejection criteria.

11.3 Impact:

Suitable Clauses will be incorporated in tender for clarity of OEM/ Authorized dealer.

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