Subject :- Some Frequently Asked Questions (FAQs) and

Clarifications on the issue of Post Tender negotiation

Sl .No.	FAQ	Clarification
1	What are the CVC guidelines on Post Tender Negotiation	CVC Circular No.4/3/07 dt. 03.03.2007 stipulates that there should be no post tender negotiations with L-1, except in certain exceptional situation. Any Counter-offer to L-2, L-3, etc. (at the rates accepted by L-1) in case of splitting of quantities, as pre-disclosed in the tender, shall not be deemed to be a negotiation. However, CVC vide D.O. letter dated 16.3.99 has given dispensation for negotiation counter offer. The same has recently again been confirmed by CVC vide their letter dated 04.09.2009.
2	Is there any dispensation given to DGS&D by CVC in the matter of Negotiations	Negotiations as well as counter-offer to tenderers for the purpose of concluding rate contracts by DGS&D is permitted by CVC - as aforesaid
3	What are the provisions on Negotiations in GFR	Rule-160 of the General Financial also provides as under:- In the rate contract system, where a number of firms are brought on rate contract for the same item, negotiation as well as counter offering of rates are permitted with the bidders in view and for this purpose special permission has been given to the Directorate General of Supplies & Disposals (DGS&D).
4	What are the provisions about negotiations in the DGS&D Manual for Rate Contracts .	Provisions with regard to negotiations/counter offer as stipulated in DGS&D Manual under para- 13.16 inter- alia tender negotiation should be avoided and the Rate Contract may be concluded without negotiation with adequate number of firms at prices within reasonable range to meet the estimated drawls. Where the price of L-1 is considered acceptable, R/C may be concluded with L-1 and its price counter offered to all other higher quoting firms. Where the price of L-1 is not acceptable, Purchase Dte. may in the first instance negotiate with L-1 only and R/C may be awarded to the L-1 at the agreed negotiated price and the same rate may be counter offered to all the other higher quoting firms and the parallel R/Cs concluded.