3.0 Brief Introduction:

Tenders should have well defined pre-qualification criteria indicating specific details sought in terms of technical competency required from participant bidders.

3.1 Background:

Based on the inputs, relevant documents were collected from the Dept concerned w.r.t BRC for hiring of Hydra cranes. Concerned Dept. has placed order on one of the successful bidders for BRC.

After scrutiny of documents, it was revealed that, successful bidder has purchased Hydra crane just before floating of tender and transferred on his proprietor’s name, just to qualify tender as per PQC. After placement of PO, they had sold the same, since, no specific guidelines were indicated in SoW regarding retaining the qualified Hydra. Due advantage of this lapses was taken by sub-contractor and to mitigate capital expenditure, they sold the same during contract period.

After investigation, no malafide intention and no vigilance angle observed in the case. These lapses didn’t reflect any malafide intention however lack of due diligence by indenting Dept. was observed. To avoid recurrence, some improvements were suggested.

3.2 Implementation:

As systemic improvements, the following were suggested and the same were implemented through a memorandum from the Functional Director concerned.

Initiator to properly indicate in the SoW that the retention of ownership of Hydra crane should be till execution of contract. This will prevent those bidders, who are purchasing Hydra cranes just to qualify in the Tendering process. This will also help to eliminate further complications and will build healthy relation between buyer and supplier without any conflict thereby streamlining the execution period without any obstacles.

3.3 Impact and Benefits:

With the implementation of the above-mentioned Systemic improvement, the procurement process become more transparent and it will help to mitigate post order conflicts.

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