Question

All the tenders received may be rejected if

(i) The lowest tenderer has quoted a figure, which is higher than the funds available for the execution of the work

(ii) Radical changes in design are found necessary during the interval preceding the opening of the tenders

(iii) The minimum number of tenders to assure adequate competition has not been received.

(iv) There exists a well-grounded suspicious collusion between tenderers or some other form of the fraud has been detected.

Which of the following statements are correct?

1. (i) and (ii) 
2. (iii) and (iv)
3. (i), (ii) and (iii) 
4. (i), (ii), (iii) and (iv)

Answer 1

Correct Answer - Option 4 : (i), (ii), (iii) and (iv)

Explanation

The authority may cancel the process of procurement or rejecting all bids at any time before intimating acceptance of successful bid under circumstances mentioned below. In case where responsive bids are available, the aim should be to finalize the tender by taking mitigating measures even in the conditions described below.

If it is decided to rebid the tender, the justification should balance the perceived risks in finalization of tender (marginally higher rates) against the certainty of resultant delays, cost escalations, loss of transparency in re-invited tender. After such decision, all participating bidders would be informed and bids if not opened would not be opened and in case of manual tenders be returned unopened:

• If the quantity and quality of requirements have changed substantially or there is an un-rectifiable infirmity in the bidding process.
• When none of the tenders is substantially responsive to the requirements of the Procurement Documents.
• None of the technical Proposals meets the minimum technical qualifying score.
• If effective competition is lacking. However, lack of competition shall not be determined solely on the basis of the number of Bidders.
• Radical changes in design are found necessary during the interval preceding the opening of the tenders
• The Bids’/ Proposals’ prices are substantially higher than the updated cost estimate or available budget.
• If the bidder, whose bid has been found to be the lowest evaluated bid withdraws or whose bid has been accepted, fails to sign the procurement contract as may be required, or fails to provide the security as may be required for the performance of the contract or otherwise withdraws from the procurement process, the procuring entity shall cancel the procurement process.

So all the options given above are correct.