Rule 190 of The General Financial Rules 2017 Evaluation of Financial Bids of Technically Qualified Bidders
Original Rule Text
Visual Summary
Opening of financial bids from technically qualified bidders.
Only bids from previously qualified entities are considered.
Final selection and placement of the consultancy contract.
Executive Summary
Rule 190 of the General Financial Rules, 2017, outlines the critical process for evaluating financial bids in consultancy procurements. It mandates that only financial bids from bidders who have already been deemed technically qualified by the Consultancy Evaluation Committee (as per Rule 189) are to be opened. This ensures that the selection of a successful bidder for a consultancy contract is based on both technical merit and financial viability, following a structured analysis, evaluation, and ranking process.
In-Depth Analysis of the Rule
Rule 190 is a crucial step in the procurement of consulting services, ensuring that financial considerations are only brought into play after a thorough technical assessment. This prevents the selection of a low-cost but technically inferior proposal, thereby safeguarding the quality of services procured by government entities.
Breakdown of the Rule:
- Exclusive Opening for Technically Qualified Bidders: The rule explicitly states that financial bids are to be opened *only* for those bidders who have successfully passed the technical evaluation stage, as determined by the Consultancy Evaluation Committee (CEC) under Rule 189. This sequential evaluation is fundamental to quality-based selection.
- Role of the Consultancy Evaluation Committee (CEC): The CEC’s declaration of technical qualification is a prerequisite for a bidder’s financial bid to be considered. This highlights the importance of the technical evaluation process in filtering out unsuitable proposals.
- Further Analysis and Evaluation: Once financial bids are opened, they undergo a detailed analysis and evaluation. This involves scrutinizing the proposed costs, ensuring they are reasonable and align with the scope of work, and comparing them against other technically qualified bids.
- Ranking of Bidders: Based on the combined technical and financial evaluation (often using a Quality and Cost Based Selection – QCBS method, as detailed in Rule 192), bidders are ranked. This ranking is crucial for identifying the most advantageous proposal.
- Selection for Consultancy Contract: The ultimate goal of this process is the selection of the successful bidder and the subsequent placement of the consultancy contract. This final decision is informed by the comprehensive evaluation of both technical and financial aspects.
Practical Example:
A Ministry is seeking a consultant for a complex infrastructure project. After receiving multiple proposals, a Consultancy Evaluation Committee (CEC) reviews all technical bids. Out of ten bidders, only five are declared technically qualified under Rule 189. According to Rule 190, the Ministry will then proceed to open the financial bids of only these five technically qualified bidders. The financial bids are then analyzed, evaluated, and combined with their technical scores to rank the bidders. The highest-ranked bidder, offering the best combination of technical quality and financial proposal, is then selected for the consultancy contract.
Related Provisions
Understanding Rule 190 is enhanced by examining its interconnected provisions within the General Financial Rules, 2017:
- Rule 189 of The General Financial Rules 2017 Evaluation of Technical Bids: This rule directly precedes Rule 190, detailing the process by which bidders are declared technically qualified, a prerequisite for financial bid opening.
- Rule 191 of The General Financial Rules 2017 Methods of Selection Evaluation of Consultancy Proposals: This rule outlines the various methods, such as Quality and Cost Based Selection (QCBS), used for the overall selection and evaluation of consultancy proposals, which includes the financial evaluation described in Rule 190.
- Rule 192 of The General Financial Rules 2017 Quality and Cost Based Selection QCBS: This rule provides specific details on the QCBS method, which is a common framework for combining technical and financial scores to arrive at a final ranking, directly utilizing the financial bid evaluation from Rule 190.
Learning Aids
Mnemonics:
- For Technical Qualifiers, Open Financials, Analyze, Rank, Select. (Financial bids, Technical Qualifiers, Open, Financials, Analyze, Rank, Select)
Process Flowchart:
Multiple Choice Questions (MCQs)
1. According to Rule 190 of the General Financial Rules, 2017, whose financial bids are to be opened for further analysis?
- A) All bidders who submitted proposals.
- B) Only bidders who have been declared technically qualified.
- C) Bidders with the lowest initial financial quotes.
- D) Bidders recommended by the administrative ministry.
Show Answer
Correct Answer: B) Only bidders who have been declared technically qualified.
2. What is the primary purpose of evaluating financial bids as per Rule 190 of the General Financial Rules, 2017?
- A) To identify the cheapest available service.
- B) To ensure technical compliance before financial review.
- C) To conduct further analysis, evaluation, and ranking for contract placement.
- D) To determine if the bidder meets minimum eligibility criteria.
Show Answer
Correct Answer: C) To conduct further analysis, evaluation, and ranking for contract placement.
3. The declaration of technical qualification, a prerequisite for financial bid opening under Rule 190 of the General Financial Rules, 2017, is made by which body?
- A) The Ministry or Department Head.
- B) The Accounts Officer.
- C) The Consultancy Evaluation Committee.
- D) The Finance Ministry.
Show Answer
Correct Answer: C) The Consultancy Evaluation Committee.
4. What is the final outcome of the process described in Rule 190 of the General Financial Rules, 2017?
- A) Approval of the budget allocation.
- B) Placement of the consultancy contract.
- C) Re-evaluation of technical bids.
- D) Issuance of a new tender enquiry.
Show Answer
Correct Answer: B) Placement of the consultancy contract.
5. Rule 190 of the General Financial Rules, 2017, emphasizes a sequential evaluation process. Which stage MUST precede the opening of financial bids?
- A) Market survey for price discovery.
- B) Technical qualification by the Consultancy Evaluation Committee.
- C) Approval from the Ministry of Finance.
- D) Submission of performance security.
Show Answer
Correct Answer: B) Technical qualification by the Consultancy Evaluation Committee.
Frequently Asked Questions
Why are financial bids only opened for technically qualified bidders under Rule 190 of the General Financial Rules, 2017?
This sequential approach ensures that the primary focus remains on the technical capability and quality of the proposed services. It prevents situations where a low financial bid from a technically unqualified or inferior bidder might be considered, thereby safeguarding the quality and effectiveness of the consultancy services procured.
What is the role of Rule 189 in the context of Rule 190 of the General Financial Rules, 2017?
Rule 189, which deals with the evaluation of technical bids, is a prerequisite for Rule 190. The Consultancy Evaluation Committee (CEC) determines technical qualification under Rule 189, and only those bidders who pass this stage proceed to have their financial bids opened and evaluated under Rule 190.
Does Rule 190 of the General Financial Rules, 2017, allow for negotiation on financial bids?
While Rule 190 focuses on the evaluation and ranking of financial bids, the specific methods of selection (like QCBS under Rule 192) will dictate if and how negotiations might occur. Generally, negotiations are discouraged after bid opening, but specific rules or circumstances might allow for it with the lowest evaluated responsive bidder in exceptional cases.
Key Takeaways
- Rule 190 strictly limits the opening of financial bids to only those bidders who have been technically qualified.
- The Consultancy Evaluation Committee (CEC) plays a pivotal role in determining technical qualification, as per Rule 189.
- The process involves further analysis, evaluation, and ranking of financial bids to select the most suitable consultant.
- This rule ensures a merit-based selection process for consultancy contracts, balancing technical expertise with financial proposals.
Conclusion
Rule 190 of the General Financial Rules, 2017, is a cornerstone of transparent and merit-based procurement for consulting services. By ensuring that financial considerations are weighed only after a rigorous technical assessment, it helps government entities secure high-quality expertise while maintaining fiscal prudence. Adherence to this rule is vital for effective project implementation and optimal utilization of public funds.