NEW DELHI: A major policy decision, the Ministry of Road Transport and Highways (MoRTH) has announced that it will now accept single bids for national highway projects under certain conditions. According to a circular issued by the ministry on Wednesday, a single bid received in open bidding will not be automatically rejected if specific requirements are met.
The conditions for accepting a single bid are as follows: the procurement must be satisfactorily advertised, sufficient time must be given for the submission of bids, the qualification criteria must not be unduly restrictive, and the prices must be reasonable compared to market values.
The circular states, “The Evaluation Committee may examine the rates taking into consideration the comparison with the similar contracts awarded.”
This decision marks a departure from the policy established in 2008, which mandated the cancellation of a single bid in the first call and required retendering. The policy allowed acceptance of a single bid only after obtaining approval from the competent authority if it was received even after retendering.
The change in policy follows a 2021 note and the 2022 Manual for Procurement of Works issued by the Finance Ministry. The Finance Ministry had observed that some procuring entities routinely assumed that open tenders resulting in single bids were unacceptable and opted for re-tendering as a safer course. It noted that re-tendering could impact costs and delay the execution of work, ultimately hindering the purpose of the procurement. Moreover, it was observed that re-tendering might result in higher bids, suggesting that the lack of competition should not be judged solely by the number of bidders.