Subject:  Improving Vigilance Administration-Tenders. 
Sir,

           Please refer to CVS's instructions issued letter No.8(1)(h)/98(1) dated 18.11.1998 banning post tender negotiations except with L.1.ie., the lowest tenderer. Some of the organisations have sought clarifications from the Commission as they are facing problems in implementing these instructions. The following clarifications are therefore issued with the approval of Central Vigilance Commission.

           (i)  The Government of India has a purchase preference policy so far as the public sector enterprises are concerned. It is clarified that the ban on the post tender negotiations does not mean that the policy of the Government of India for purchase preference for public sector should not be implemented.

           (ii)  Incidentally, some organisations have been using the public sector as a shield or a conduit for getting costly inputs or for improper purchases. This also should be avoided.

           (iii) Another issue that has been raised is that many a time the quantity to be ordered is much more than L1 alone can supply. In such cases, the quantity order may be distributed in such a manner that the purchase is done in a fair transparent and equitable manner.
                                                                                                                                         
                                                                                                    (P.S. FATEHULLAH)
                                                                                                             DIRECTOR