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After the tenders (OT/GT/LTE/STE) have been opened  they are separated into Technical and Commercial bids. In some cases, three parts of the bid is received, Technical, Commercial and price bid.

The first step is to examine the technical and commercial issues of the tenders for determining their suitability. Price evaluation is done after the tender evaluation of technical and commercial parts.

This procedure of evaluation is also called the two bid system.

     Important guidelines for analysis and evaluation of tenders :
  • Tenders are to be evaluated as per the terms and conditions incorporated in the tender document issued by purchaser
  • Determination of a tender's responsiveness or otherwise is to be based on the contents of the tender itself
  • No tender should be rejected during tender opening

          What are the essentials of examining the tenders :
  • The tenderer fulfills the eligibility criteria and meets qualification criteria
  • The documents are properly signed
  • Offer validity is as required
  • Required earnest money is available
  • If the tender is from a dealer, proper authorisation from the manufacturer is available
  • Meets the required specification and other essential technical details as shown in the tender document
  • Required provisions concerning performance security , warranty, force majuere , applicable law, taxes and duties etc. have been accepted without deviation, reservation or omission
  • The tender conforms to all the essential terms & conditions of tender document without material deviations
  • The tenders which fulfill all the essential requirements are called responsive tenders

Purchaser may wave any minor information, non-conformity and / or irregularity in a tender or obtain clarification from the tenderer provided the same does not constitute material deviation and also does not prejudice or affect the relative ranking order of the tenders.

Whenever necessary , purchaser is to convey his observations on such issues to the tenderers. If a tenderer does not accept such observations, that tender is to be rejected being unsuitable.

Except otherwise provided, the tenderers shall not be requested or permitted to alter or withdraw material deviations or reservations (in tenders) once the tenders have been opened.

Based on the scrutiny as above , the tenders are to be divided into two categories - suitable and non suitable



Price bids of the Techno-commercially suitable tenders are then opened and ranked and then L1 (Lowest offered price) is determined.

Tender evaluation will take into account, all factors as incorporated in the tender document such as :
  • Price / purchase preference
  • Cost of inland transportation, insurance etc. for delivery upto final destination
  • Cost of component, spare parts and incidental services
  • Projected operating and maintenance cost
  • Performance and productivity of the equipment offered
  • Applicable loading due to permissible deviation, if any, in the terms and conditions and specification

The contract is to be awarded to the successful tenderer whose tender is the lowest evaluated techno-commercially suitable tender (L1) and price is reasonable.



Transparency in Public procurement
Acceptable Supplier / Offer
Single Tender Enquiry (STE)
Limited Tender Enquiry (LTE)
Open Tender Enquiry (OT)
Global Tender Enquiry (GT)
Procedure For Tender Evaluation
Reasonableness of Price
Contract Management