‘Works & Procurement Policy and Procedure’ Section-B Page 154 of 140 Volume – I Pre-award (Introduction and Pre-award Sections)

B5.21 Annulment of Bidding Process and Re-tendering:

B5.21.1 Bidding document shall contain a provision that the Owner reserves the right

to annul the bidding process at any time prior to award of Contract including

rejection of any or all bids after the same has been received, without thereby

incurring any liability to the affected bidder or bidders or any obligation to

inform the affected bidder or bidders of the ground of the Owner’s action. In

case circumstances warrant annulment of bidding process, before the deadline

for bid submission, a ‘general notification’ to this effect shall be issued

through press advertisement (in case of open tender invited through press

advertisement) and bidders, who have been issued the bidding documents, shall

also be intimated separately and bids, if any, received by that time shall be

returned. In case circumstances warrant annulment of bidding process, after

deadline for submission of bids but before opening of bids, the bidders who

have been issued the bidding documents shall be intimated accordingly and the

bids received shall be returned. However, once the bids are opened, the

recourse under this provision to reject all the bids and to go in for re-tendering

will be justified only as the last resort, recording adequate justification for

such action.

B5.21.2 If higher prices are obtained, all bids can be rejected. Situation where higher

prices quoted by the bidders warrant rejection of bids, shall be dealt with as

explained hereunder:

B5.21.2.1 If a cartel formation is suspected as the reason for higher prices, all the bids

shall be straight away rejected and re-tendering shall be resorted to.

B5.21.2.2 In all such cases, where no cartel formation is suspected but prices are still on

higher side, negotiation with lowest evaluated bidder shall be held to bring

down the prices to a satisfactory and reasonable level. If satisfactory and

‘Works & Procurement Policy and Procedure’ Section-B Page 155 of 140 Volume – I Pre-award (Introduction and Pre-award Sections)

reasonable reduction in prices is not achieved, all the bids may be rejected and

re-tendering may be resorted to.

While resorting to re-tendering, wider advertisement may be considered in

cases where higher prices are apparently on account of lack of competition.

Wherever, apparently, there is no lack of competition, re-tendering will be

resorted to either through snap bidding from the parties who have earlier

submitted their offer or through normal tendering process depending on the

facts and circumstances, specially the time schedule available for

implementation of the project, with a provision that in case of snap bidding,

revised bid price cannot be higher than the initial bid price. Wherever it is

possible, the bidders shall be asked to indicate only the reduction in their initial

bid price, during snap bidding.

B5.21.3 If there is a change in BOQ, after opening of bids, and the same necessitates re -

tendering as per methodology described in para B5.10, snap bidding may be

resorted to by inviting fresh bids with changed BOQ from only those firms that

purchased the bidding documents in the first instance. The award of contract

under this procedure shall be treated as a case of award under the same mode

of tendering, as adopted earlier, for the purpose of Delegation of Power.

B 5.21.4 If there is postponement of project execution with the revised schedule being

uncertain, thereby requiring deferment of award of contract for the package(s),

re-tendering will be resorted to as per normal tendering process.

B5.21.5 Rejection of any or all the bids, for reasons whatsoever, shall be with the

approval of the authority competent to award the particular package. However,

if the approval of award falls within the powers of sub-committee/ Board of

directors, the rejection of bids shall be with the approval of CMD. The

‘Works & Procurement Policy and Procedure’ Section-B Page 156 of 140 Volume – I Pre-award (Introduction and Pre-award Sections)

proposal for annulment of bidding, after the bids are opened, shall be processed

by the tender committee through Contracts, Indenting and Finance Depts., for

the approval of the Competent Authority. In all other cases, the proposal will

be processed by Contracts Co-ordintor.