Rule 203 of The General Financial Rules 2017 Evaluation of Bids Received
Original Rule Text
Visual Summary
Assess responsiveness and quality of received bids.
Categorize and order bids based on criteria.
Choose the successful bidder for contract placement.
Executive Summary
Rule 203 of the General Financial Rules, 2017, outlines the critical process for evaluating bids received for non-consulting services. It mandates that the Ministry or Department responsible must meticulously evaluate, segregate, and rank all responsive bids. The ultimate goal is to select the most suitable bidder for the contract, ensuring a fair and transparent procurement process. This rule emphasizes a structured approach to decision-making in awarding contracts for non-consulting services.
In-Depth Analysis of Rule 203
Rule 203 is a concise yet crucial provision within the General Financial Rules, 2017, specifically governing the procurement of non-consulting services. It places the onus on the procuring Ministry or Department to conduct a thorough and systematic evaluation of all bids received. This process is fundamental to ensuring that public funds are utilized efficiently and that contracts are awarded to competent and deserving entities.
Breakdown of the Rule:
- Evaluate Bids: The primary step involves a comprehensive assessment of all submitted bids. This evaluation must consider all aspects outlined in the tender documents, including technical specifications, quality, delivery timelines, and commercial terms.
- Segregate Bids: After evaluation, bids must be categorized or separated based on their responsiveness to the tender requirements. This helps in distinguishing compliant bids from non-compliant ones.
- Rank Responsive Bids: Compliant and responsive bids are then ranked according to predefined criteria, typically focusing on factors like price, technical merit, and past performance. This ranking facilitates the identification of the most advantageous offer.
- Select Successful Bidder: The final step is to select the bidder who best meets the requirements and offers the most favorable terms, leading to the placement of the contract. This decision must be well-justified and transparent.
Practical Example:
Imagine the Ministry of Health needs to procure cleaning services for its offices (a non-consulting service). After inviting bids, they receive several proposals. According to Rule 203, the Ministry must first evaluate each bid for compliance with specifications (e.g., type of cleaning, frequency, staff qualifications). They would then segregate bids into responsive and non-responsive categories. Responsive bids would be ranked based on a combination of cost-effectiveness and service quality. Finally, the Ministry would select the highest-ranked responsive bidder to award the cleaning contract, ensuring the best value for public money.
Related Provisions
Rule 203 operates within a broader framework of procurement rules. Understanding these related provisions provides a holistic view of the bid evaluation process:
- Rule 198 of The General Financial Rules, 2017 (Procurement of Non-consulting Services): Sets the general framework for procuring non-consulting services.
- Rule 201 of The General Financial Rules, 2017 (Invitation of Bids): Details the process for inviting bids for non-consulting services.
- Rule 204 of The General Financial Rules, 2017 (Procurement of Non-consulting services by nomination): Addresses exceptional cases for single-source procurement.
Learning Aids
Mnemonics:
- E.S.R.S.: Evaluate, Segregate, Rank, Select. This helps remember the four key steps of bid evaluation.
Process Flowchart:
Multiple Choice Questions
1. According to Rule 203 of the General Financial Rules, 2017, what is the primary responsibility of the Ministry or Department regarding bids received?
- A) To immediately reject all bids that are not the lowest.
- B) To evaluate, segregate, rank responsive bids, and select the successful bidder.
- C) To forward all bids directly to the Finance Ministry for approval.
- D) To only consider bids from pre-registered suppliers.
Show Answer
Correct Answer: B) To evaluate, segregate, rank responsive bids, and select the successful bidder.
2. Which of the following is NOT explicitly mentioned as a step in the bid evaluation process under Rule 203 of the General Financial Rules, 2017?
- A) Segregate the bids.
- B) Negotiate prices with all bidders.
- C) Rank the responsive bids.
- D) Select the successful bidder.
Show Answer
Correct Answer: B) Negotiate prices with all bidders.
3. The selection of the successful bidder under Rule 203 of the General Financial Rules, 2017, is for the purpose of:
- A) Informing the public about market rates.
- B) Placement of the contract.
- C) Internal departmental record-keeping.
- D) Recommending policy changes to the Government.
Show Answer
Correct Answer: B) Placement of the contract.
4. What kind of bids does Rule 203 of the General Financial Rules, 2017, primarily deal with for evaluation?
- A) Consulting service bids.
- B) Only bids from international suppliers.
- C) Responsive bids for non-consulting services.
- D) Bids for capital expenditure only.
Show Answer
Correct Answer: C) Responsive bids for non-consulting services.
5. The phrase “responsive bids” in Rule 203 of the General Financial Rules, 2017, implies bids that:
- A) Are the lowest in price.
- B) Respond quickly to the tender invitation.
- C) Conform to the essential terms and conditions of the bidding document.
- D) Are submitted by government-owned entities only.
Show Answer
Correct Answer: C) Conform to the essential terms and conditions of the bidding document.
Frequently Asked Questions
What is the main objective of Rule 203 of the General Financial Rules, 2017?
The main objective is to ensure a fair, transparent, and systematic process for evaluating bids received for non-consulting services, leading to the selection of the most suitable bidder for contract placement.
Who is responsible for evaluating bids under Rule 203?
The Ministry or Department that issued the tender for non-consulting services is responsible for evaluating, segregating, ranking, and selecting the successful bidder.
What does “responsive bids” mean in the context of Rule 203?
Responsive bids refer to those proposals that fully conform to all the essential terms, conditions, and specifications outlined in the bidding document, making them eligible for further evaluation and ranking.
Key Takeaways
- Rule 203 mandates a structured evaluation of bids for non-consulting services.
- The process involves evaluating, segregating, and ranking responsive bids.
- The ultimate goal is to select the most suitable bidder for contract placement.
- This rule ensures transparency, fairness, and efficiency in government procurement.
Conclusion
Rule 203 of the General Financial Rules, 2017, serves as a cornerstone for responsible public procurement of non-consulting services. By establishing a clear, multi-step process for bid evaluation and selection, it empowers government entities to make informed decisions that uphold financial propriety and deliver optimal value for public expenditure. Adherence to this rule is paramount for maintaining integrity and effectiveness in government contracting.