A RESEARCH REPORT

on

Tenders and Drafting of the Tenders

Submitted in the partial fulfillment for the course

COMMERCIAL CONTRACT MANAGEMENT

Submitted by: K. Sai Divya (180550031)

Submitted to: Dr. I. Pavan Kumar

Department of BBA-LL. B

Koneru Lakshmaiah Educational Foundation

2022-2023
 TABLE OF CONTENTS

1. Introduction .................................................................................................................. 3

2. Statutes Governing Tenders in India ..........................................................................5-6

3. Indian Contract Act,1972 ..............................................................................................6

4. Sale of Goods Act,1930 ................................................................................................7

5. Competition Act,2002 ...................................................................................................8

6. The Public Procurement (Preference to Make in India) Order 2017 and the General
Financial Rules, 2017..................................................................................................8-9

7. General Tender Process...........................................................................................10-11

8. General types of Tenders..............................................................................................12

9. Open Tender ...........................................................................................................12-13

10. Sample for Open Tender ..............................................................................................14

11. Limited Tenders ...........................................................................................................15

12. Sample for limited tenders ..........................................................................................16

13. Single-Stage Two-Envelope Tender .......................................................................17-18

14. Sample for Single-Stage Two-Envelope Tender ....................................................19-21

15. Two Stage Tender ...................................................................................................22-23

16. E-Tender ......................................................................................................................24

17. Sample for E-Tender notice ...................................................................................25-26

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INTRODUCTION

The process of tendering is a crucial aspect of business operations for many organizations,
particularly those involved in procurement or construction projects. Tenders are formal
documents that provide information about a company or organization's qualifications,
proposed scope of work, and pricing or fee structure for performing the work or providing the
goods or services requested.
There are various kinds of tenders, each with its own requirements and evaluation criteria.

This report provides a comprehensive overview of the different types of tenders, including
open tenders, restricted tenders, negotiated tenders, and competitive dialogue tenders, as well
as offers samples of tender documents. Additionally, this report explores the legal
implications of the tendering process, including the procurement regulations that govern the
process, and the potential legal risks associated with submitting tenders

Tender: A tender is a formal document or offer submitted by a company or organization in

response to a Request for proposal (RFP) or Invitation to tender (ITT). It is a competitive
bidding process where organizations are invited to submit a proposal to provide goods,
services, or work to a client or organization.

The tender typically includes detailed specifications or requirements for the project, as well
as instructions on how to submit a proposal, the deadline for submissions, and the evaluation
criteria that will be used to assess the proposals. Tenders are commonly used in procurement
processes for government contracts, construction projects, and other large-scale initiatives.

GOVERNMENT TENDRING: 1

The Indian Government, along with State and local governments, their agencies and
departments, buy many goods and services from the private sector, and provide a significant
market opportunity for businesses. The government market provides many opportunities to
tender for a wide range of goods and services, from large procurements and projects such as
Defence, infrastructure, and health, to supply of stationery and cleaning contracts.

Government tendering involves various guidelines and procedures, such as the Common
wealth Procurement Guidelines, to ensure that the process is conducted in accordance with
ethical, fair, and transparent practices. As the Government is accountable to tax-payers and
the society, they ensure that the tendering process is equitable and non- discriminatory.
Government procurement processes are designed to encourage competition and promote the
efficient, effective, and ethical use of government resources.
In addition to winning new business, contracting with Government can
offer many advantages to your business, including:

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  A valuable reference that may assist you to secure contracts in the private sector or
overseas.
 Experience gained is a strong selling point to other public
authorities.
 Provides a reliable source of business.

The core principle in Government tendering and procurement is achieving value for money.
This does not just refer to offering the lowest price or best offer.
Value for money can also be assessed by looking at factors including:

1. The relative risk of the proposal

2. Fitness for purpose
3. The performance history of the supplier
4. All direct and indirect financial costs and benefits over the life of
5. the procurement
6. The flexibility of the proposal to adapt to possible change
7. The anticipated price that could be obtained, or cost incurred, at the time of
disposal.

PRIVATE SECTOR TENDERING: 2

There has been an increasing move in recent times for private sector businesses to emulate
government departments and agencies in their practice of tendering. Many private businesses
are choosing to buy their products and services by finding suppliers via a tendering process.
And the types, range and number of products and services they seek are vast and differing,
thus offering opportunities to a wide range of businesses.
The private sector is attracted to tendering to realise benefits including; maximising
competition, providing an opportunity for a much larger pool of suppliers to make an offer, as
well as having a greater choice in selecting a supplier that offers value for money.
However, the private sector has the luxury of having a much more flexible tendering process,
in comparison to the public sector (government). As the requirements of transparency and
accountability greatly differ between the two groups, private sector companies are not
required to have such stringent and prescriptive procedures. Without such tight constraints,
the private sector can often make the process simpler and more flexible, and tenderers
generally have fewer requirements to adhere to when submitting a tender. Often tenderers can
present their offer through more individual and innovative means and are generally more
readily able to meet with the company requesting tenders if clarifications or questions arise.
Whilst the tendering process may differ between Government and private sector, the two
groups generally look for similar things; the core being value for money. Quality, reliability,
efficiency, and added value are important factors in any tender offers that are sought after
when evaluating tender submissions. Other factors include.
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  Authenticity and insight : Does the bidder have genuine, substantiated knowledge and
experience of the sectors of activity in which the business is engaged and the factors
that influence its market environment and profitability?
 Partnering and synergy: Are the corporate values and policies of the business
understood and supported?
 Is there a sense that this bidder is the one best placed to work with the client in a
productive team effort?
 Risk and professional accountability: Have the bid addressed these concepts? Does it
indicate an understanding of their significance for successful contract performance?
 Innovation: New ideas, fresh thinking, and solutions that competitors will find it hard
to match are ingredients that can win the day, but innovation needs to be both
deliverable and dependable. Has the bidder taken account of the risks associated with
innovation?
 Flexibility and responsiveness: Do the bid communicate a readiness to ‘go the extra
mile’ to provide maximum value in meeting the client’s requirements, and a
willingness to adapt methods and procedures in response to unforeseen changes in the
requirements of the contract?

OVERSEAS TENDERING: 3
Tendering for overseas contracts can be attractive for businesses however may well prove
challenging due to the number of difficulties involved in the process. It is important to
therefore approach overseas tenders with caution and develop an understanding of potential
difficulties in areas such as; communication, differing jurisdiction/legal considerations, added
costs, and a lack of knowledge and understanding of international markets.
There are several benefits to overseas tendering including; opportunities to access
international markets, obtain jobs and contracts from a wider pool of businesses, as well as
facilitate economic and employment growth.
In India, there are no laws for tenders. A tender is simply an invitation to an offer. In
response, one party signifies its willingness with a view to obtaining the assent of another
party, the interested party submits an offer or perform the prerequisite conditions to
participate in a tender which is considered as an offer to a contract under Section 2(a) of
Indian Contract Act, 1972.

In India, the tender process is primarily governed by the following laws:

 The Indian Contract Act, 1872: This act defines the legal framework for entering
contracts in India. All government tenders are considered as contracts and are subject
to this law.

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  The Indian Sale of Goods Act, 1930: This act governs the sale of goods and services
in India. It provides the legal framework for the purchase of goods and services
through the tender process.

 The Competition Act, 2002: This act prohibits anti-competitive agreements and
regulates the competition in the market. It also deals with abuse of dominance by
companies.

 The Public Procurement (Preference to Make in India) Order, 2017: This order
mandates that preference should be given to Indian goods and services in all
government procurements.

 The Public Procurement Policy for Micro and Small Enterprises (MSEs), 2012: This
policy aims to promote the participation of micro and small enterprises in government
procurement.

Apart from these laws, various government departments and organizations also have their
own set of rules and regulations for tendering processes, which must be followed by all
parties involved in the process.

THE INDIAN CONTRACT ACT,1872

A tender which is considered as an offer to a contract under Section 2(a) of Indian Contract
Act, 1972

In the case of Meerut Development Authority vs. Association of Management Studies 4

the Supreme Court considered a tender as an offer. A tender is something that invites and is
communicated to notify acceptance of an invitation. It must be unconditional and in the
proper form, the person by whom a tender is made should be able to perform and must have
the willingness to perform his obligations.

A tender is an offer. It is something that one invites and communicates to notify the
acceptance of other. In general terms, essentials of tender are equivalent to essentials of an
offer.

The essentials of a tender include:

 It must be unconditional
 It must be carried out appropriately.
 The conditions of the duty must be followed by them.
 The appropriate moment must be chosen.
 The right procedure must be followed.
 The bidder must be able and ready to fulfill their commitment.
 A fair chance for inspection must exist.
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(2009) 6 SCC 171
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  The proper individual must receive the proposal.
 It must be of the entire sum.

THE SALE OF GOODS ACT,1930

There is no specific section in the Sale of Goods Act, 1930 that governs the purchase of
goods through tenders. The Act applies to all contracts of sale, including those made through
tenders.

However, there are several provisions in the Act that are relevant to contracts of sale made
through tenders. For example, Section 4 of the Act defines a contract of sale as "a contract
whereby the seller transfers or agrees to transfer the property in goods to the buyer for a
price." This definition would apply equally to contracts of sale made through tenders.

Section-4 of Sale of Goods Act,19305

Sale and agreement to sell:

(1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer
the property in goods to the buyer for a price. There may be a contract of sale between one
part-owner and another.
(2) A contract of sale may be absolute or conditional.
(3) Where under a contract of sale the property in the goods is transferred from the seller to
the buyer, the contract is called a sale, but where the transfer of the property in the goods is
to take place at a future time or subject to some condition thereafter to be fulfilled, the
contract is called an agreement to sell.
(4) An agreement to, sell becomes a sale when the time elapses or the conditions are fulfilled
subject to which the property in the goods is to be transferred.

Section 12 of the Act provides that there is an implied condition in every contract of sale that
the goods sold are of merchantable quality. This means that the goods are of a quality that is
suitable for their intended purpose and are free from defects that would render them unfit for
their intended use.

Section 12 of sale of goods Act,19306

Condition and warranty:

(1) A stipulation in a contract of sale with reference to goods which

are the subject thereof may be a condition or a warranty.
(2) A condition is a stipulation essential to the main purpose of the contract, the breach of
which
gives rise to a right to treat the contract as repudiated.

5
https://legislative.gov.in/sites/default/files/A1930-3_0.pdf
6
https://legislative.gov.in/sites/default/files/A1930-3_0.pdf

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(3) A warranty is a stipulation collateral to the main purpose of the contract, the breach of
which
gives rise to a claim for damages but not to a right to reject the goods and treat the contract
as repudiated.
(4) Whether a stipulation in a contract of sale is a condition or a warranty depends in each
case on the
construction of the contract. A stipulation may be a condition, though called a warranty in
the contract.

Section 14 of the Act provides that there is an implied warranty that the seller has the right to
sell the goods. This means that the seller warrants that they have the legal right to sell the
goods and that the buyer will not be subject to any legal action as a result of the purchase.

THE COMPETITION ACT,2002

The Competition Act, 2002 is a legislation in India that aims to promote competition in
markets and prevent anti-competitive practices. It applies to all sectors of the economy,
including the purchase of goods through tenders.

Under the Competition Act, anti-competitive agreements and abuse of dominance are
prohibited. This means that any arrangement between bidders participating in a tender that
has the effect of restricting or distorting competition, such as bid-rigging, price-fixing, or
market-sharing, is prohibited and can lead to penalties under the Act.

In addition, the Competition Act empowers the Competition Commission of India (CCI) to
investigate and act against anti-competitive practices. The CCI has the power to initiate an
investigation on its own or on receipt of a complaint, and can impose penalties on those
found to be engaged in anti-competitive practices.

In the context of tenders, the Competition Act would apply to any anti-competitive
agreements between bidders, as well as any abuse of dominance by a bidder or group of
bidders.

THE PUBLIC PROCUREMENT (PREFERENCE TO MAKE IN INDIA) ORDER

2017 AND THE GENERAL FINANCIAL RULES, 20177

Under the Public Procurement (Preference to Make in India) Order 2017, government
agencies must give preference to domestically manufactured goods and services. This means
that bidders who offer domestically manufactured goods or services may be given a margin
of preference over foreign bidders. The margin of preference is calculated as a percentage of
the price quoted by foreign bidders and is intended to encourage domestic manufacturing and
promote the 'Make in India' initiative.
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https://doe.gov.in/sites/default/files/Public%20Procurement%20%28preference%20to%20Make%20in
%20India%29%2C%20order%202017.pdf

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The General Financial Rules, 2017 provide guidelines for procurement by government
agencies and prescribe the procedures and processes to be followed for public procurement.
These rules mandate that all procurement must be transparent, fair, and competitive and must
be based on objective criteria. Government agencies must also follow specific procedures for
tendering, including the publication of tender notices, bidder pre-qualification, and bid
evaluation.

Together, these two documents ensure that public procurement in India is conducted in a fair
and transparent manner and promotes domestic manufacturing and services. Tenders issued
by government agencies in India must comply with these rules and regulations

The Public Procurement (Preference to Make in India) Order 2017 and the General Financial
Rules, 2017 set out the rules and regulations for tenders issued by government agencies in
India. Some of the key rules and regulations are as follows:

Preference for Domestic Suppliers: Under the Public Procurement (Preference to Make in
India) Order 2017, government agencies must give preference to domestically manufactured
goods and services. This means that bidders who offer domestically manufactured goods or
services may be given a margin of preference over foreign bidders.

The Public Procurement (Preference to Make in India) Order 2017 and the General Financial
Rules, 2017 set out the rules and regulations for tenders issued by government agencies in
India. Some of the key rules and regulations are as follows:

Tender Notices: Government agencies must publish tender notices in newspapers, on their
websites, or on e-procurement portals. The notices must include information on the scope of
the project, the timeline, the selection criteria, and the contact details of the agency issuing
the tender.

Pre-Qualification of Bidders: Before issuing tenders, government agencies may pre-qualify

bidders based on their experience, technical capabilities, financial strength, and other criteria.
Pre-qualification ensures that only capable and qualified bidders are invited to submit bids.

Bid Evaluation: Government agencies must evaluate bids based on objective criteria, such as
the technical and financial capabilities of the bidder, compliance with specifications, and
price. The evaluation process must be transparent and fair.

Contract Award: The contract must be awarded to the bidder who meets the eligibility
criteria and offers the best value for money. Government agencies must follow a transparent
process for awarding contracts and must notify all bidders of the outcome of the tender.

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GENERAL TENDER PROCESS

Needs Assessment: The organization identifies a need for goods or services that cannot be
provided internally. This can be initiated through a procurement plan or request by a
department for specific goods or services.

Develop Tender Documents: The organization develops tender documents that outline the
requirements and specifications of the goods or services being requested. These documents
typically include:

Tender notice: This is a public announcement inviting potential bidders to submit bids.
Instructions to bidders: This document outlines the rules and procedures for submitting a bid,
including the format, deadline, and method of submission.

Scope of work or specifications: This document details the technical specifications and
requirements of the goods or services being requested.
Evaluation criteria: This document outlines how the organization will evaluate the bids,
including price, technical compliance, quality assurance processes, delivery time, and other
factors.

Contract terms and conditions: This document outlines the terms and conditions that will
govern the contract if awarded.

Invitation to Tender: The organization invites potential suppliers or contractors to submit a

bid. This is usually done by publishing the tender notice in local or national newspapers,
trade publications, or online portals.

Bidder Queries: Potential bidders may ask for clarification or additional information
regarding the tender documents. The organization is responsible for providing timely and
accurate responses to these queries to ensure a fair and competitive tender process.

Bid Preparation: Bidders prepare their bids, including their pricing, quality assurance
processes, and other information required by the organization. Bidders must ensure that their
bids comply with the instructions to bidders and address all the requirements outlined in the
tender documents.

Submission of Bids: Bidders submit their bids to the organization by the deadline specified in
the tender documents. Bids can be submitted in various formats, including hard copies,
electronic copies, or online submissions.

Bid Evaluation: The organization evaluates the bids based on the evaluation criteria outlined
in the tender documents. The evaluation process typically includes several steps:

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Compliance check: The organization checks whether the bid meets the requirements and
specifications outlined in the tender documents.

Technical evaluation: The organization evaluates the technical aspects of the bid, including
quality assurance processes, delivery time, and other technical factors.
Financial evaluation: The organization evaluates the pricing and financial aspects of the bid,
including cost-effectiveness and value for money.

Comparison and ranking: The organization compare the bids based on the evaluation criteria
and ranks them accordingly.

Negotiation: The organization may enter into negotiations with the selected bidder to finalize
the terms of the contract. This is usually done to ensure that the contract terms and conditions
are fair and reasonable for both parties.

Award of Contract: The organization awards the contract to the successful bidder and notifies
all bidders of the outcome of the tender process. The contract is typically awarded to the
bidder who meets all the requirements and provides the best value for money.

Contract Execution: The organization and the successful bidder sign the contract and begin
work on the project. The contract terms and conditions govern the relationship between the
organization and the contractor, and both parties are responsible for fulfilling their obligations
under the contract.

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GENERAL TYPES OF TENDERS

Tenders are issued by government agencies at the central, state, and local levels, as well as by
public sector undertakings, for the procurement of goods, works, and services.

TYPES OF TENDERS IN INDIA

There are several types of tenders in India, including:

Open Tenders: Open tenders are open to all bidders who meet the qualification criteria
specified in the tender notice.

Limited Tenders: Limited tenders are restricted to a select group of bidders who have been
pre-qualified by the procuring agency.

Single-Stage Two-Envelope Tenders: Single-stage two-envelope tenders require bidders to

submit both technical and financial bids in separate envelopes.

Two-Stage Tenders: Two-stage tenders involve a pre-qualification stage, followed by a

request for proposal stage for shortlisted bidders.

E-tenders: E-tenders are conducted electronically, through an online portal, and are
becoming increasingly popular in India.

OPEN TENDER

Open tenders, also known as open competitive bidding or open solicitation, is a procurement
method that allows any interested supplier or vendor to participate in the bidding process. In
an open tender, the buyer publicly advertises the procurement opportunity, providing details
of the goods or services required, the evaluation criteria, and the deadline for submission of
bids. Any supplier or vendor meeting the eligibility criteria can submit a bid.

Open tenders are widely used in the public sector and by large private companies for
procurement of goods and services. The benefits of open tenders include:

Competition: Open tenders encourage competition, which can lead to better value for money
and better quality of goods or services.

Transparency: The bidding process is transparent, as all interested bidders have access to the
same information and are evaluated based on the same criteria.

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Fairness: The bidding process is fair, as all eligible bidders have an equal opportunity to
compete for the contract.

Accountability: The process is accountable, as the buyer can demonstrate that they have
followed a transparent and fair process.

In order to ensure a successful open tender, the buyer should clearly define the requirements,
evaluation criteria, and deadlines in the tender document. The tender document should be
made available to all potential bidders and should allow for sufficient time for them to
prepare and submit their bids. The buyer should also ensure that the evaluation process is fair,
objective, and consistent, and that all bidders are notified of the outcome of the tender.

EXAMPLES OF OPEN TENDERS

Government procurement: Open tenders are commonly used by government agencies to

procure goods and services. For example, a government agency may issue an open tender for
the construction of a new hospital building.

Infrastructure projects: large infrastructure projects, such as the construction of highways,

airports, or railways, may be procured through open tenders. For example, a state government
may issue an open tender for the construction of a new metro rail system.

IT services: Open tenders may be used to procure IT services, such as software development
or network maintenance. For example, a company may issue an open tender for the
development of a new software application.

Consultancy services: Open tenders may also be used to procure consultancy services, such
as management consulting or engineering consulting. For example, a government agency
may issue an open tender for the design of a new bridge.

Construction materials: Open tenders may be used to procure construction materials, such as
cement or steel. For example, a construction company may issue an open tender for the
supply of steel for a new building project.

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Sample for Open Tender:

Andhra Pradesh Southern Power Distribution Company ltd.

APSDCL

1st floor, ABC Plaza, A.P road, Vijayawada, 500000.

TENDER NOTICE

APSDCL invites Sealed Tender for the following work:

Tender number and date: 1234/2023, dated- 9/03/2023

Description of work: Installing electrical poles in the area of Ayodyanagar and respective
connections

Cost of Tender Document: 1,00,000/- including gst@18%

Earnest Money Deposit: 30,000/-(Rupees thirty thousand only)
Mode of Payment: Demand Draft favoring APDSCL payable at Vijayawada.

Contract period: 1+4 years

Date of submission of Tender Document: 19.03.2023 to 31.03.2023 before 15:00 hrs.

Date of opening of Price Quotations bids: 10.04.2023 before 15:00 hrs.

For further more details and criteria of selection refer to the website www.apdscl.in tenders or
contact above address

Chief manager

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LIMITED TENDERS

In the context of procurement or contracting, a limited tender is a procurement method where

a procurement entity invites a limited number of potential suppliers to submit bids or
proposals for a specific project or requirement.

Limited tenders are usually used when the procurement entity has identified a small group of
suppliers who can meet the specific requirements of the project or when there is a need for a
fast procurement process. The procurement entity may send out invitations to bid directly to
the selected suppliers or may advertise the opportunity through a restricted procurement
notice.

The selection of potential suppliers is usually based on factors such as the supplier's
experience, expertise, and capacity to undertake the project, as well as their past performance
on similar projects. The procurement entity may also consider factors such as the supplier's
reputation, financial stability, and compliance with legal and ethical requirements.

Compared to open tenders, where any interested supplier can submit a bid, limited tenders
can result in a faster and more efficient procurement process. However, they may also limit
competition and reduce the potential for finding the most competitive prices or innovative
solutions.

EXAMPLES OF LIMITED TENDERS

Consulting Services: A government agency may decide to invite proposals from a limited
number of potential suppliers for consulting services on a specific project. The agency may
select a few consulting firms with relevant experience and expertise to submit proposals,
rather than issuing a public tender.

IT Equipment: A company may decide to invite bids from a limited number of potential
suppliers for the purchase of IT equipment, such as laptops or servers. The company may
select a few suppliers with a strong track record in supplying IT equipment to submit
proposals, rather than issuing a public tender.

Security Services: A university may decide to invite proposals from a limited number of
potential suppliers for security services on its campus. The university may select a few
security firms with relevant experience and expertise to submit proposals, rather than issuing
a public tender.

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Sample of Limited tender

Government of India
Income Tax department
1st floor, ABC Plaza, A.P road, Delhi, 500000.

LIMITED TENDER NOTICE

No. 12345/2023 Date:09.03.2023

Limited tenders duly sealed titled as “Tender for Installation of Software in Income Tax
department computers” are invited.

1. The Income Tax Department of India intends to invite proposals from a limited
number of potential suppliers for the installation of tax management software in our
computers. We are looking for a supplier with a strong track record in software
installation and support services, who can provide us with a reliable and user-friendly
software solution.

2. The scope of work includes the installation and configuration of tax management
software in the computers of the Income Tax Department. The software should be
capable of managing and processing tax data efficiently and accurately. It should
include the following features:

a.
User-friendly interface for easy data entry and retrieval
b.
Calculation of tax liabilities and refunds
c.
Generation of tax returns and reports
d.
Integration with external data sources and systems
e.
Secure data storage and backup facilities
f.
The supplier will be responsible for installing the software, configuring it to
meet our requirements, and providing training and support services to our
staff. The supplier should also provide maintenance and upgrade services as
required.
3. Proposals should include the following:

a. Company profile and experience in software installation and support services

b. Proposed tax management software solution and features
c. Proposed timeline for the project
d. Cost estimate, including all fees and expenses

4. The supplier must have at least three years of experience in software installation and
support services. The supplier must have experience in installing tax management
software.

Proposals should be submitted by email to procurement@incometax.gov by 5:00 pm on April

15, 2023.

Procurement Manager, Income Tax Department

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SINGLE-STAGE TWO-ENVELOPE TENDER

A Single-Stage Two-Envelope Tender is a procurement method used in the bidding process

for goods or services. It involves two envelopes: one for technical proposals and the other for
financial proposals. Here are the steps involved in a Single-Stage Two-Envelope Tender:

The procuring entity issues a Request for Proposal (RFP) to potential bidders, outlining the
requirements and specifications of the goods or services to be procured.

Bidders submit their proposals in two envelopes: one for technical proposals and the other for
financial proposals. The technical proposal envelope should contain details of the bidder's
technical capabilities, experience, and proposed solution, while the financial proposal
envelope should contain details of the bidder's pricing and payment terms.

The procuring entity first evaluates the technical proposals to determine if they meet the
requirements and specifications outlined in the RFP. The technical proposals are evaluated
without reference to the financial proposals.

Bidders whose technical proposals are deemed acceptable are then invited to open their
financial proposals. The financial proposals are evaluated based on the price and payment
terms, and the bidder with the most favorable financial proposal is awarded the contract.

In some cases, the procuring entity may negotiate the terms of the contract with the winning
bidder before finalizing the award.

Overall, the Single-Stage Two-Envelope Tender process is designed to ensure that the
procuring entity selects the bidder with the best technical capabilities and the most favorable
financial proposal for the goods or services being procured.

BENEFITS OF SINGLE-STAGE TWO-ENVELOPE TENDERS

Transparency: The SSTE tender process is highly transparent, as it allows the procurement
team to evaluate the technical proposals based on pre-determined criteria, which are disclosed
to all the bidders.

Fairness: The SSTE tender process ensures that all bidders are evaluated based on their
technical capabilities and price, without any bias.

Quality of Service: The SSTE tender process ensures that the supplier with the best technical
capabilities and lowest price is selected, which results in the delivery of high-quality services.

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Cost-Effective: The SSTE tender process encourages suppliers to provide the best possible
prices, as the financial proposal is only considered after the technical proposal is assessed.

Competitive Bidding: The SSTE tender process encourages competitive bidding, as bidders
are required to submit their best technical and financial proposals.

Overall, the SSTE tender process is an effective procurement method that can help ensure the
selection of the most suitable and cost-effective supplier, while maintaining transparency and
fairness in the procurement process.

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Sample for one stage two envelope notice

Government of Andhra Pradesh

Department of home ministry
Tender No: 123456/2023

134-12, ABC plaza, near bus stand,

Vijayawada, 500000

The Home ministry of Andhra Pradesh, invites sealed tenders from eligible and qualified
bidders for the procurement and installation of CCTV cameras in the police control room at
Vijayawada. The bidder must provide comprehensive and integrated solutions for
surveillance, recording, storage, and monitoring of CCTV footage.

Scope of Work:

 Design, supply, and installation of CCTV cameras, recording equipment, and related
hardware and software for the police control room.
 Providing a robust and reliable network infrastructure to ensure seamless connectivity
between the CCTV cameras and the control room.
 Training of police personnel to use the CCTV system and software to manage and
monitor the footage.
 Providing comprehensive maintenance and support services for the CCTV system.

Eligibility Criteria:

The bidder must fulfill the following eligibility criteria:

 The bidder must be a registered company with a valid GST registration.

 The bidder must have experience of successfully executing similar projects in the past
five years.
 The bidder must provide a list of references from previous clients.
 The bidder must have adequate financial resources to execute the project.

Tender Process:
The tender process will be conducted in a single-stage, two-envelope system. The bidder
must
submit two separate sealed envelopes, as follows:

Envelope 1: Technical Bid

 Company profile and registration documents.
 Details of experience in executing similar projects.
 List of references and contact details of previous clients.
 Details of the proposed solution and equipment to be used.
 Details of the network infrastructure to be used.

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  Proposed implementation schedule.
 Any other relevant documents as per the tender requirements.

Envelope 2: Financial Bid

The financial bid must include the proposed cost for the project, inclusive of all taxes and
duties. The bidder must clearly indicate the cost of each component of the proposed solution.

The envelopes must be clearly marked as "Envelope 1 - Technical Bid" and "Envelope 2 -
Financial Bid" and both the envelopes should be submitted in a larger envelope which must
be sealed and marked with the tender number and the bidder's name and address.

Important Dates:

Issue of Tender Document: 09.03.2023

Pre-Bid Meeting: 11.03.2023
Last Date for Submission of Tender: 24.04.2023
Opening of Envelope 1 - Technical Bid: 10.04.2023 15:00 hrs.
Opening of Envelope 2 - Financial Bid: 20.04.2023 15:00 hrs.

For any clarification or queries regarding the tender, the bidders may refer notification in
www.aphomeministry.gov

Note:
The Department of Home Ministry reserves the right to accept or reject any or all tenders
without assigning any reason thereof. The decision of the Department of Home Ministry will
be final and binding.

Deputy secretary

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 Department of home ministry

ANNEXURE-1

TECHNICAL BID DOCUMENTS

The Technical Bid should consist the following documents

Authorization letter from NEC

Copy of PAN
Copy of latest GST deposit Challan
Copy of Service Tax and TIN no.
Copy of ESI registration
Copy of PF registration
Copy of ISO registration
Copy of last 5 years’ experience of similar contracts
Copies of balance sheet of last 3 years

FINANCIAL BID DOCUMENTS

Description Quantity Rate Amount

CCTV footage monitor station, cables, routers 02

Service charges for experienced person from 01

9AM to 5pm

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 Deputy secretary
Department of home ministry

TWO-STAGE TENDER

A two-stage tender process is a procurement method used in construction and engineering

projects. In this process, the project owner or client selects a shortlist of potential contractors
or suppliers based on their technical ability, qualifications, and experience. The shortlisted
bidders then submit their initial proposals, which are evaluated by the client. The client then
selects a preferred bidder or bidders to proceed to the second stage of the tender process.

The second stage involves the shortlisted bidders submitting their final bids, which include
their proposed price and other details such as the proposed construction schedule, technical
specifications, and terms and conditions of the contract. The client evaluates the final bids
and selects the preferred bidder to award the contract to.

The two-stage tendering process typically involves the following steps:

Pre-qualification stage: In this stage, the client invites potential contractors to express their
interest in the project and provide information about their experience, capability, and
financial stability. The client evaluates the responses and shortlists the most suitable
contractors to participate in the second stage.

Detailed design and specification stage: In this stage, the client provides the shortlisted
contractors with detailed design and specifications to prepare their proposals. The contractors
submit their proposals, which include a detailed design, a bill of quantities, and a price for the
work.

Evaluation and award stage: In this stage, the client evaluates the proposals based on the
quality of the design, the price, and other factors such as the construction program, proposed
methodology, and the contractor's track record. The client then selects the preferred bidder
and awards the contract.

ADVANTAGES OF TWO-STAGE TENDERS

Quality of Proposals: In a two-stage tender process, the initial proposals are evaluated based
on technical ability, qualifications, and experience, which ensures that only the most suitable
bidders are shortlisted for the second stage. This leads to higher quality final proposals.

Reduced Risk: Since only the most suitable bidders are shortlisted for the second stage, the
risk of receiving poor quality proposals is reduced.

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Collaboration: In a two-stage tender process, there is greater collaboration between the client
and the shortlisted bidders. This leads to a better understanding of the client's requirements
and ensures that the final proposal meets the client's needs.

Competitive Pricing: Since only a limited number of bidders are shortlisted for the second
stage, the competition is higher, which results in more competitive pricing.

EXAMPLES OF TWO-STAGE TENDERS

Design and Build Projects: In a design and build project, the first stage involves
prequalification of potential bidders based on their design capabilities and experience. In the
second stage, qualified bidders are invited to submit their proposals, including a detailed
design and cost estimate for the project.

Public-Private Partnerships (PPP): PPP projects often use a two-stage tender process. In the
first stage, potential bidders are evaluated based on their financial and technical capacity to
undertake the project. In the second stage, qualified bidders are invited to submit their
proposals, including a detailed project plan and financing strategy.

Complex Infrastructure Projects: Two-stage tenders are often used for complex
infrastructure projects such as highways, bridges, and tunnels. In the first stage, potential
bidders are evaluated based on their technical expertise, experience, and financial capacity. In
the second stage, qualified bidders are invited to submit their proposals, including detailed
designs, construction plans, and cost estimates.

Information Technology (IT) Projects: Two-stage tenders are also commonly used for IT
projects. In the first stage, potential bidders are evaluated based on their technical expertise
and experience in delivering similar projects. In the second stage, qualified bidders are
invited to submit their proposals, including a detailed project plan, implementation strategy,
and cost estimate.

Overall, the two-stage tender process is a popular procurement method for complex and high-
value projects, as it allows for a more thorough evaluation of potential bidders and their
proposals.

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E-TENDER

An e-tender, also known as an electronic tender, is a procurement process that uses electronic
means for soliciting bids, evaluating proposals, and awarding contracts. E-tenders are
becoming increasingly popular as they provide a more efficient and transparent way of
conducting procurement activities.

E-tenders offer several benefits over traditional tendering methods, including increased
efficiency, reduced paperwork, lower transaction costs, improved transparency, and wider
participation. The e-tender process typically involves the use of an online platform where
buyers can post their tender notices, and potential suppliers can register, submit their bids,
and track the status of their bids. The platform also provides tools for evaluating bids, such as
automated scoring and analysis.

E-tendering is governed by legal frameworks and guidelines that vary by country or

jurisdiction. In many cases, e-tendering is subject to procurement regulations that specify
requirements for security, data protection, and confidentiality.
E-tenders are often secured using encryption, digital signatures, and other security measures
to ensure the integrity and confidentiality of the bidding process.

TYPES OF E-TENDERS

There are various types of e-tenders, including open tenders, selective tenders, restricted
tenders, and framework agreements. Open tenders are open to all interested suppliers, while
selective tenders are limited to pre-qualified suppliers. Restricted tenders are only open to
invited suppliers, and framework agreements are pre-approved agreements with selected
suppliers for specific goods or services.While e-tenders offer several advantages, they also
come with challenges such as lack of infrastructure, limited internet connectivity, and
insufficient skills among suppliers. To address these challenges, many governments and
organizations are investing in capacity building programs to improve the use of e-tendering.

Government e-tenders: Many governments around the world use e-tendering platforms to
conduct procurement activities, such as construction projects, IT services, and transportation
contracts.

Reverse e-auctions: A reverse e-auction is an online bidding process where suppliers

compete to offer the lowest price for a particular product or service. This is commonly used
for purchasing raw materials or equipment.

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Construction projects: E-tenders are frequently used for large construction projects to
manage the procurement of materials, equipment, and services from suppliers.

Doc.no-123456/02/2023
Govt. of India
Department of Law and Justice
Legislative department

Address: 3rd floor, ‘C’ Wing, Lok Nayak Bhavan,

Khan market, New delhi-110003.

TENDER NOTICE
Subject: Installation and Annual maintenance contract for installing and maintenance of
electrical equipment and petty electrical works for the year 2023 to 2025.
According to the enclosed list, this office needs the assistance of a contractor with expertise
for the installation, upkeep minor electrical work for the years 2023–2025.
For the aforementioned project, confidential bids are requested under the terms and
conditions outlined in document. If you are interested in taking on the project, please submit
the quotation to the undersigned in a sealed envelope by March 25 th. The cover should be
market as “Quotation for installing and maintain ends of electrical equipment and minor
electrical works.”
The work will be assigned to a successful tenderer under the terms in conditions:
1. The successful company will be needed to complete the job between 2023 and 2025.
However, this office retains the right to withdraw from the agreement at any instance
during the time frame of the agreement through establishing an adequate reason.
2. It shall be the contractor’s duty to make all electrical equipment and electrical points
work satisfactorily and are in good working conditions throughout the course of
contract. To fulfil this obligation, he may have to hire an experienced worker who is
accessible during working hours to work in the wing.
3. Electrical devices installation should be completed within the stipulated period and
servicing must be carried out when required in the office premises.
4. This office retains the right to either approve or deny any quotation in whole or in part
without providing a justification. If the contractor's work is deemed unsatisfactory or
if the contractor violates the terms of the contract, the task will be completed using
any alternative method at the risk and cost of the defaulting contractor.
5. The firm should have an experience of at least 3 years of working in government
offices and should enclose copy of experience.
6. The firm may also furnish registration copy of tin number service tax number and
PAN number certificate.
7. The selected firm has to submit an Deposit of rupees10,000 /- (Ten Thousand Rupees
only) in the form of a demand draft payable to the official languages section of Delhi's

Page | 25
 drawing and disbursing office. The abovementioned deposit will be forfeited if the
successful bidder withdraws offer in due course.
8. At the expiration of the contract of service, security deposit is refunded. If the work is
not satisfactory to this office, the security deposit will either be completely or partially
forfeited.
Administrative director (Office of law and justice)
ANNEXURE
List of Electrical Items for installation

List of items Estimated cost

Conduits & bends

AC Conduits

Switch boxes

Light boxes

Fan boxes

Junction boxes

Wires

Distribution switch gears

Switches & Plates

flush switches

IC main switches

Batten holders

Fluorescent lamp holders

Celling roses

LED spare lights

Celling fans

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 Administrative director
(Office of law and justice)

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