Tender system

The best way to award tenders is to negotiate with the first three lowest bidders. L1 need not always be the best. If the price difference between L1 and L2 is substantial and technically L2 is better than L1, then it is the right move to get the L2 price as close as possible to L1, if L1 is not able to meet the specifications. The history of the two bidders and their performance on earlier tenders must be evaluated before calling them for negotiation. In order to get the correct price, it is better to ask the two lowest to resubmit in a sealed bid their lowest price and award the tender to the better of the two. The third bidder could also be considered if the price of L3 is close to L2. The last purchase price may be an indication of the correct price, however need not be achieved since the time lapse and other factors like inflation, general market trend etc need to be considered. The most important is that the tender must be decided on the day of the negotiation, otherwise influence will play an important role before decision. more  

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This idea defeats the very purpose and aim of open tendering system. It appears you are not aware of CVC's (Central Vigilance Commission) Office Memorandum that negotiation with any bidder is banned. It may be done but in rare cases with L1 tender only with due recommendation of the Tender Committee. Negotiation leaves the ample scope of corruption and this is the idea that this has been banned. This was issued on 18.11.1998 by Nagraj Vittal when he was CVC. It may be referred which is available on CVC Website. more  
I am against tender system. During Britsh raj giverment did not have this systen therefore we have strutures lasting for hundred years. Tender system harbours corruption. more  
even tender system also, the officers before giving the tender form , they are telling the percentage bribe to given, so that the bidder has to add to that extant and quote the prices. all bidders and officers make money only under arbitration clauses of the tenders. more  
Specification can not be changed after the tender is floated.

Specification may be difficult to achieve if not verified.

The best way is first to generate data on a few reliable suppliers for the product under consideration.

Have a prebid detail technical meeting and negotiation on technical specification and get an idea of the price for the specification chosen.

Then, float the tender and allow everyone to quote.

Consider the quotation from only those suppliers who confirm to meet the specification without any deviation.

Reject all other quotations.

Now negotiate with both L1 and L2, and with L3 (if L3 is close to L2).

Recommend the lowest, and keep L2 as a fall back option, if L1 fails to deliver. more  
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