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Finance Ministry defines ‘Abnormally Low Bid’ in public procurement
ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ?
Why a bid 30% below cost can lose: the 'Abnormally Low Bid' rule in public procurement, GS2/GS3
Bids over 30% below estimated cost need detailed justification or face rejection.
Why it matters: factual, Prelims-type
What you need to know
2 ನಿಮಿಷ
The Finance Ministry has defined an ‘Abnormally Low Bid’ for government contracts.
A bid more than 30 per cent below the estimated cost will need a detailed rationale from the bidder, and an unsatisfactory explanation may lead to rejection of the bid.
The aim is to protect quality of execution and prevent contractors from quoting unsustainable prices to win works.
ಮೂಲಗಳು: Topper IAS editorial (PIB / The Hindu / Indian Express)
ಮುಖ್ಯ ಅಂಶಗಳು
Remember these
- The Finance Ministry has defined an 'Abnormally Low Bid' for government contracts.
- A bid more than 30 per cent below the estimated cost needs a detailed rationale from the bidder.
- An unsatisfactory explanation may lead to rejection of the bid.
- The aim is to protect quality of execution and stop unsustainable price quoting to win works.
- Public procurement rules are guided by the General Financial Rules (GFR).
ಪ್ರಿಲಿಮ್ಸ್ · ಮೇನ್ಸ್
How the exam will ask it
ಪ್ರಿಲಿಮ್ಸ್
- The Finance Ministry has defined an 'Abnormally Low Bid' in government contracts as one quoted more than 30 per cent below the estimated cost.
- A bidder quoting an abnormally low price must give a detailed justification, failing which the bid may be rejected.
- The measure seeks to ensure quality of execution and discourage unsustainably low quotes made only to win works.
ಮೇನ್ಸ್
GS2/GS3 (Governance, Economy): Unrealistically low bids lead to poor quality, delays, cost overruns and abandoned works. The Finance Ministry's definition, with a 30 per cent threshold and a duty to justify the price, gives procuring entities a clear basis to scrutinise or reject such bids. The way forward is transparent estimation, consistent application, safeguards against arbitrary rejection, and performance security with monitoring.
Quick recall
Answer before you reveal
ಹಣಕಾಸು ಸಚಿವಾಲಯದ ವ್ಯಾಖ್ಯಾನದ ಪ್ರಕಾರ, ಅಂದಾಜು ವೆಚ್ಚಕ್ಕಿಂತ ಎಷ್ಟು ಶೇಕಡಾಕ್ಕಿಂತ ಹೆಚ್ಚು ಕಡಿಮೆ ಇರುವ ಬಿಡ್ ಅನ್ನು 'ಅಸಹಜವಾಗಿ ಕಡಿಮೆ ಬಿಡ್' ಎಂದು ಪರಿಗಣಿಸಿ ವಿವರವಾದ ಸಮರ್ಥನೆ ಕೇಳಲಾಗುತ್ತದೆ?
- ಶೇ 10
- ಶೇ 20
- ಶೇ 30
- ಶೇ 40
ಉತ್ತರ ನೋಡಿ
ಉತ್ತರ: C — ಅಂದಾಜು ವೆಚ್ಚಕ್ಕಿಂತ ಶೇ 30ಕ್ಕಿಂತ ಹೆಚ್ಚು ಕಡಿಮೆ ಇರುವ ಬಿಡ್ಗೆ ವಿವರವಾದ ಸಮರ್ಥನೆ ಅಗತ್ಯ.
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