Rule 161 of The General Financial Rules 2017 Advertised Tender Enquiry

Rule 161 of The General Financial Rules 2017 Advertised Tender Enquiry

Original Rule Text

Rule 161 Advertised Tender Enquiry
(i) Subject to exceptions
incorporated under Rule 154,
155, 162 and 166, invitation to
tenders by advertisement
should be used for procurement
of goods of estimated value of
[(Rs. 50 lakhs (Rupees Fifty
2425
Lakh) and above)]
Advertisement in such cases
should be given on GeM as well
as on GeM- Central Public
Procurement Portal (GeM-
CPPP)]. An organisation having
its own website should also
publish all its advertised tender
enquiries on the website.
(ii) The organisation should also
post the complete bidding
document in its website and on
GeM-CPPP to enable
prospective bidders to make
use of the document by
downloading from the web site.
(iii) The advertisements for
invitation of tenders should give
the complete web address from
where the bidding documents
can be downloaded.
(iv) [Global Tender Enquiry (GTE):
(a) Where the Ministry or
Department feels that the
goods of the required
quality, specifications etc.,
may not be available in the
country and it is necessary
to also look for suitable
competitive offers from
abroad, the Ministry or
Department may send
copies of the tender notice
to the Indian Embassies
abroad as well as to the
Foreign Embassies in
India. The selection of
embassies will depend on
the possibility of availability
of the required goods in
such countries. In such
cases e-procurement as
per Rule 160 may not be
insisted.
(b) No Global Tender Enquiry
(GTE), however shall be
invited for tenders up to Rs
200 crore or such limit as
may be prescribed by the
Department of Expenditure
from time to time. Provided
that for tenders below such
limit, in exceptional cases,
where the Ministry or
Department feels that
there are special reasons
for GTE, it may record its
detailed justification and
seek prior approval for
relaxation to the above rule
from the Competent
Authority specified by the
Department of
26
Expenditure.]
(v) In order to promote wider
participation and ease of
bidding, no cost of tender
document may be charged for
the tender documents
downloaded by the bidders.
(vi) Ordinarily, the minimum time to
be allowed for submission of
bids should be three weeks
from the date of publication of
the tender notice or availability
of the bidding document for
sale, whichever is later. Where
the Department also
contemplates obtaining bids
from abroad, the minimum
period should be kept as four
weeks for both domestic and
foreign bidders.

Visual Summary

Procurement Threshold

For goods valued at Rs. 50 lakhs and above.

Advertisement Channels

GeM, GeM-CPPP, and organization’s own website.

Bid Submission Time

Minimum three weeks (four for international bids).

Executive Summary

Rule 161 of The General Financial Rules, 2017, mandates the use of Advertised Tender Enquiry for the procurement of goods with an estimated value of Rs. 50 lakhs and above. This method requires wide publicity through platforms like GeM, GeM-CPPP, and the procuring organization’s own website. The rule also provides specific guidelines for conducting Global Tender Enquiries (GTE) under certain conditions and sets minimum timeframes for bid submission to ensure fair and transparent competition.

In-Depth Analysis of the Rule

Introduction: Advertised Tender Enquiry is a cornerstone of transparent public procurement, ensuring wide participation and competitive bidding. Rule 161 lays down the essential framework for this method, particularly for high-value procurements, to uphold principles of fairness and economy in government spending.

Breakdown of the Rule:

  • Scope and Threshold: This method is mandatory for the procurement of goods with an estimated value of Rs. 50 lakhs (Rupees Fifty Lakh) and above, subject to exceptions outlined in Rules 154, 155, 162, and 166.
  • Publicity Requirements: Advertisements for tenders must be published on the Government e-Marketplace (GeM) and the GeM-Central Public Procurement Portal (GeM-CPPP). Additionally, any organization with its own website must also publish these tender enquiries there.
  • Accessibility of Bidding Documents: To facilitate prospective bidders, the complete bidding document should be posted on the organization’s website and GeM-CPPP for easy download. Advertisements must include the full web address for downloading these documents.
  • Global Tender Enquiry (GTE):
    • A GTE may be initiated if the Ministry or Department believes that goods of the required quality and specifications may not be available domestically, necessitating competitive offers from abroad. Tender notices can be sent to Indian Embassies abroad and Foreign Embassies in India, with selection based on the availability of goods in those countries. E-procurement, as per Rule 160, may not be insisted upon in such GTE cases.
    • However, no GTE shall be invited for tenders up to Rs. 200 crore (or other prescribed limits). Exceptions below this limit require detailed justification and prior approval from the Competent Authority specified by the Department of Expenditure.
  • Cost of Tender Documents: To encourage broader participation and ease of bidding, no cost should be charged for tender documents downloaded by bidders.
  • Minimum Bid Submission Time: A minimum of three weeks must be allowed for the submission of bids from the date of publication of the tender notice or availability of the bidding document, whichever is later. For bids sought from abroad, this minimum period extends to four weeks for both domestic and foreign bidders.

Practical Example: Imagine the Ministry of Defence needs to procure specialized equipment worth Rs. 75 lakhs. According to Rule 161, they must issue an Advertised Tender Enquiry. This involves publishing the tender details on GeM, GeM-CPPP, and the Ministry’s official website. The complete bidding document, including technical specifications and terms, must be available for download. If the Ministry suspects that only foreign manufacturers can meet the stringent technical requirements, they might consider a Global Tender Enquiry, provided they obtain the necessary approvals and adhere to the specified monetary limits and justification requirements. They must also ensure that bidders have at least three weeks (or four weeks for international bidders) to prepare and submit their proposals, and no fee is charged for downloading the tender documents.

Related Provisions

Rule 161 operates within a broader framework of procurement rules. Understanding these related provisions provides a comprehensive view of government purchasing guidelines:

Learning Aids

Mnemonics
  • Advertise Tenders Extensively: Remember the core requirement to advertise widely.
  • Global Tenders Except Restricted: Helps recall GTE conditions and limits.
  • Three Weeks For Bids: A simple reminder for the minimum bid submission period.
Process Flowchart
Procurement Need(>= Rs. 50 Lakhs)Issue AdvertisedTender EnquiryPublish on GeM/CPPP/WebsitePost BiddingDocument OnlineGlobal Tender?YesJustify & GetApprovalNoAllow Min 3/4Weeks for BidsReceive BidsEvaluate & AwardContract

Multiple Choice Questions (MCQs)

1. According to Rule 161 of The General Financial Rules, 2017, what is the estimated value threshold for goods that mandate an Advertised Tender Enquiry?

  • A) Up to Rs. 10 lakhs
  • B) Rs. 25 lakhs and above
  • C) Rs. 50 lakhs and above
  • D) Any value, if deemed necessary by the Ministry
Show Answer

Correct Answer: C) Rs. 50 lakhs and above

2. Where must advertisements for tenders be published, as per Rule 161 of The General Financial Rules, 2017?

  • A) Only on the organization’s website
  • B) Only on GeM-Central Public Procurement Portal (GeM-CPPP)
  • C) On GeM, GeM-CPPP, and the organization’s own website
  • D) In national newspapers only
Show Answer

Correct Answer: C) On GeM, GeM-CPPP, and the organization’s own website

3. What is the minimum time allowed for submission of domestic bids under an Advertised Tender Enquiry, according to Rule 161 of The General Financial Rules, 2017?

  • A) One week
  • B) Two weeks
  • C) Three weeks
  • D) Four weeks
Show Answer

Correct Answer: C) Three weeks

4. Under Rule 161 of The General Financial Rules, 2017, when can a Global Tender Enquiry (GTE) be considered?

  • A) For any procurement above Rs. 10 lakhs
  • B) When goods of required quality may not be available in the country
  • C) Only for tenders above Rs. 200 crore
  • D) If the Ministry desires to promote international trade
Show Answer

Correct Answer: B) When goods of required quality may not be available in the country

5. According to Rule 161 of The General Financial Rules, 2017, what is the policy regarding the cost of tender documents for bidders?

  • A) A nominal fee must always be charged.
  • B) Cost should be charged only for physical copies.
  • C) No cost may be charged for downloaded tender documents.
  • D) Cost is determined by the procuring Ministry.
Show Answer

Correct Answer: C) No cost may be charged for downloaded tender documents.

Frequently Asked Questions

What is the primary purpose of Rule 161 of The General Financial Rules, 2017?

Rule 161 primarily outlines the procedure for conducting Advertised Tender Enquiries for the procurement of goods with an estimated value of Rs. 50 lakhs and above, ensuring transparency and competition in government purchasing.

Are there any exceptions to using Advertised Tender Enquiry under Rule 161 of The General Financial Rules, 2017?

Yes, Rule 161 is subject to exceptions incorporated under Rules 154 (Purchase of goods without quotation), 155 (Purchase of goods by Purchase Committee), 162 (Limited Tender Enquiry), and 166 (Single Tender Enquiry).

What are the rules for Global Tender Enquiries (GTE) under Rule 161 of The General Financial Rules, 2017?

A GTE can be initiated if domestic availability of required goods is doubtful, with notices sent to embassies. However, GTEs are generally not invited for tenders up to Rs. 200 crore, though exceptions can be made with detailed justification and prior approval from the Competent Authority.

Key Takeaways

  • Rule 161 mandates Advertised Tender Enquiry for goods valued at Rs. 50 lakhs and above, ensuring broad competition.
  • Tender advertisements and documents must be published on GeM, GeM-CPPP, and the organization’s website for maximum visibility and accessibility.
  • Global Tender Enquiries (GTEs) are permissible under specific conditions, particularly when domestic supply is uncertain, but are generally restricted for tenders up to Rs. 200 crore without special approval.
  • To promote participation, no cost should be charged for downloaded tender documents, and minimum bid submission periods (three weeks for domestic, four for international) must be observed.

Conclusion

Rule 161 of The General Financial Rules, 2017, is vital for maintaining integrity and efficiency in government procurement. By standardizing the process for advertised tenders, it ensures that public funds are utilized through competitive, transparent, and fair means, ultimately leading to better value for money and accountability.