PANAJI
The Comptroller and Auditor General of India (CAG) has raised questions over Goa Industrial Development Corporation’s (GIDC) “anti-competitive” tendering practice of rejecting technically qualified bidders for quoting greater than 20 per cent below the estimated cost. Since 2021, the Corporation has rejected almost 59 per cent of e-tenders, amounting to over Rs 48.29 cr for being 20 per cent below the estimated cost.
GIDC has been rejecting any tenders pertaining to roads, buildings, sewerage, water supply, etc quoting more than 20 per cent below the estimated cost put to tender. CAG had pointed out the “incorrect” practice of the Corporation in 2010, despite which no corrective measure has been initiated so far.
CAG said that GSIDC has been following an “anti-competitive” practice in e-tendering process of rejecting bids that were greater than 20 per cent below the estimated cost put to tender.
During the period from 2021 to 2024, there were 79 e-tenders with estimated cost of Rs 112.90 cr of which 46 tenders with estimated cost of Rs 48.29 cr, received bids that were exactly 20 per cent below the estimated cost. One tender received a bid of 30 per cent below the estimated cost and despite technically qualified, was incorrectly rejected.
“The bids of 59 per cent of all e-tenders being 20 per cent below the estimated cost clearly indicated inflated estimates and were not allowed to be corrected through the efficient price discovery mechanism of e-tendering,” CAG said.
“As long as the bids being greater than 20 per cent below the estimated cost was through an efficient price discovery mechanism in competitive bidding, there was no reason to reject such technically qualified bids,” the Auditor said, pointing out that GIDC failed to safeguard its financial interests.
CAG pointed out that the Central Public Works Department works manual does not prescribe such rejection of bids merely because the bidder breached any threshold vis-à-vis the estimated cost.
The Auditor has recommended GIDC to review the anti-competitive practice of rejecting technically qualified bids, with appropriate publicity for the correction to be made so that the bidders could bid without the fear of rejection.
