LIMITED / REGISTERED /CLOSED / SELECTIVE / RESTRICTED

TENDERING

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Restricted Bidding Restricted tendering is a procurement method that limits the request for tenders to a select

number of suppliers, contractors or service providers. This method of procurement is also called: Limited Bidding and Selective Tendering.

Although considered a competitive procurement method, competition is limited to only firms shortlisted or invited by the procuring entity.

A process should be in place for arriving at the number and specific firms that will be invited; that number however is dependent on the stipulations of the public procurement legal framework.

Any decision to use the Restricted Tendering procurement method must conform to the policies and procedures governing the procurement system

A basic characteristic of this method is that competition is confined to a certain number of firms either because only a few firms are qualified to fulfill the specific type of requirement, or certain conditions warrant the use of a limited number of firms in order to reduce the time and cost of the selection process..

Selection Procedure for contractor

Pre Qualification Procedure One Stage: In one stage pre qualification criteria is

mentioned in notice inviting tender Two Stage: Initial pre qualification is done for

contractor before they are given invitation to tender

Pre selected contractors from maintained contractor's list by client’s procurement agency, consultant or works department

Restricted Tenders (CPWD Manual 2014)

Cases where restricted tenders can be resorted:

Restricted tenders of any value can be called in the following cases with the priorapproval of the DG, CPWD.

(i) The work is required to be executed with very great speed, and not allcontractors are in a position to generate.

(ii) The work is of special nature requiring specialised equipment, which is not likely to be available with all contractors.(iii) Where the work is of secret nature and public announcement is notdesirable.

(iv) Where the list of pre-qualified contractors is required to be shortened to a

suitable limited number.(v) Maintenance of VIP residences/important buildings as decided by ChiefEngineer concerned.

(vi) Other exigencies of the work so demand.

Selective Tendering : Single Stage

The client evaluate the tenders and, if accepted, a contract will be formed between the client and the finally selected contractor.

• Reduces time, effort & cost of tendering.• Less possibility of any firm quoting unrealistic price.• Fair Competition (not as high as open tendering).

Disadvantage:• Few good contractor may not get the chance.• Higher prices due to big contractors & limited competition.

Selected bidders (typically 4-7) are asked to submit bids.

Advantages

Selective Tendering : Two Stage

The client evaluates the submitted EOI & then ask the selected contractor to submit complete bids.

These bids are evaluated & after negotiation, client willenter into contract with the preferred contractor.

The client invites expression of interest (EOI) from suitably qualified and experienced contractors.

The EOI generally calls for details for the contractors experience and capabilities in handling projects of similar size, nature and complexity as that of proposed project

Selective Tendering : Two Stage

Good competition between capable contractors

Combined strength of competition & negotiation.

Early involvement of contractor. Parallel design-construction.

Disadvantages/Shortcomings:

The most preferred contractor may fail to negotiate with competitive prices.Negotiation could drag on & increase complexity.

Advantages:

Combines the benefits of open & single stage selective.