Systemic Improvement-Procurement Process
6.0 Brief Introduction:
Open tender was floated for procurement of an item in which, one supplier (other than L1) allegedthat L1 bidder quoted extremely low and it is not possible to supply the item as per tender enquiry at the rates quoted by them.
Out of two bids received against the tender, both bids were techno commercially accepted. L1 bidder quoted price was exorbitantly higher than internal estimate and the difference between L1 & L2 was 65.32%.
It was observed that present market conditions were not considered while preparing the estimate. The tendered item had specific MOQ requirement, MDL requirement was not based on MOQ. Further, staggered delivery was requested for 2 years, hence pricing policy of each bidder may not be same.
Following discrepancies were noticed during the investigation;
(i) As per the technical pre-Qualification Criteria, the bidders are to be submit order copies along with work completion certificates for similar work carried out earlier. Here L1 firmdid not submit relevant work completion certificate however offer was accepted by TNC.
(ii) It was also observed thatScrutiny of Technical offers was too much delayed by technical department w.r.t. to time frame given in Internal Purchase Manual. Multiple opportunities were given to the bidders to comply the tender requirements.
Tender under reference was scrapped in view of exorbitantly high rates even after price bid evaluation w.r.t. internal estimate.
The following Systemic Improvements were suggested by Vigilance Department and a memorandum to this effect was issued by respective Director for compliance by all concerned.
(i) During techno-commercial scrutiny, issues such as verifying the similar nature of work experience indicated in pre-qualification documents of tender and status of bidder (manufacturer or trader) to be looked into with due diligence.
(ii) Timeline indicated in the Purchase Manual for techno-commercial scrutiny shall be adhered to.
(iii) In addition, all HODs shall ensure the prioritisation for procurement through GeM Portal. Price history or price trend available on GeM portal shall be used as reference for ensuring the reasonableness of prices.
6.3 Impact and Benefits:
Lead-time of the procurement process will be minimized. Priority will be given for procurement of standard items through GeM.