Negotiation procedure

Shared Documents Joined: No. of Replies: 61

Cann't we do away with negotiation altogether in open tenders?

1. Negotiation invariably delays finalisation of tenders.
2. Results after negotiation are debatable.
3. At times when the competition is not there , the tenderer quotes high thinking that "i'll see the scene at negotiation ", if situation is favourable he negotiates else escapes with EMD.
4. If negotiation is not permitted , the tenderer will always quote reasonable rate else the chances of rejection of the offer will always be there.
5. If negotiation is not permitted , the TC will always consider the offer rationally , rather than saying " Let's see if negotiation can reduce the rates ? "

Special conditions can be dealt through counter offers.

I have observed that after the introduction of Performance Guarantee Clause , we are getting more sincere offers. Getting rid of negotiations will further improve the situation.

Shared Documents Joined: May 02, 2005 No. of Replies: 1236

Negotiation can also be a source of corruption.

There is a circular of CVC vide their office order No.6//10/05 Dt.25.10.2005 issued vide No.005/CRD/12 to all Chief vigilance officers after a workshop on 27.7.2005 at SCOPE, NDLS which states as under:-

(i) There should not be any negotiations. Negotiations if at ll shall be an exception and only in case of propritary items or in the cases of items with limited sources of suppy. Negotiations should be held with L1 only and counter offer tatamounts to negotiation and should ne treated on par with negotiations.

(ii) Negotiations can be recommonded in exceptioal cases only after due application of mind and recording valid, logical reasons justifying negotiations. In case of inability to obtained desired resuts by way of reduction in rates and negotiations prove infructuous, satisfactory explanations are required to be recorded by the committee who recomonded the negotiations. The committee shall be responsible for lack of application of mind in cse its negotiations have only unnecessarily delayed the award of work/contract

Shared Documents Joined: Feb 10, 2005 No. of Replies: 68

http://cvc.nic.in/005crd012.pdf

As per CVC letter, negotiation should be called only for exceptional cases. But in practice, negotiation is being done for almost all the cases, mostly for the reasons of higher rates. Executive justifies the negotiation as re tendering will delay either the essential operation or essential maintenance or safety aspect. He works for the interest of department by saving some amount for the railway. Also he is responsible if rates are further high in re tendering.

Laughing

Negotiations are mostly successful: A contractor, who is aiming for a work, carefully analyses the rates and enters into the competition. When he becomes L1, he wins the major battle of uncertainty. If he is called for negotiation, he knows that he has to reduce rates to make negotiation successful for the department, thereby avoids discharge of the tender. Negotiation is successful if some amount of railway is saved.

In my opinion either negotiations should be completely removed from the tendering procedure or it should be a part of tendering process and not an exception.

As of now post tender negotiation are routine and only exception is accepting offer without negotiation.
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- ShaitanSangwaXEN/Mangalore ... 28-09-08