No.98/ORD/1
GOVERNMENT OF INDIA
CENTRAL VIGILANCE COMMISSION

                                                                                                        Satarkta Bhawan, Block 'A'
                                                                                               GPO Complex, INA,
                                                                                                New Delhi - 110 023
                                                                                                     Dated 24th August 2000

                                 Subject: Improving Vigilance Administration-Tenders.
Sir,

           Please refer to the instructions issued by Commission vide its communication No.8(1)(h)/98(1) dated 18.11.1998 banning post tender negotiations except with L.1.

           2. The Commission has been getting a number of queries on how to handle the matter if the quantity to be ordered is more than L-1 can supply or about  placement of orders on public sector Undertakings. It is requested that such matters may be dealt with in  accordance with the clarifications issued by the Commission vide its letter of even number dated 15.03.1999 (copy Enclosed).

          3. Some of the organisations have sought clarification as to whether they can consider the L-2 offer or negotiate with that firm if L-1 withdraws his offer before the work order is placed or before the supply or execution of work order takes place. In this regard, it is clarified that such a situation may be avoided if a two-bid system is followed (Techno-commercial) so that proper L-1 party backs out there should be retendering in a transparent and fair manner. The authority may in such a situation call for limited or short notice tender if so justified in the interest of work and take a decision on the basis of lowest tender.
    
         4.  The Commission has also been getting references for its advice on the procedures being followed in individual cases of tenders. The Commission would not involve itself in the decision making process of individual organisations. It however would expect the organisation to implement its instructions dated 18.11.1998 in its spirit and to ensure that the decisions of administrative authorities are transparent.
 
                                                                                                     (K. L. AHUJA)
                                                                                    OFFICER ON SPECIAL DUTY