Rule 187 of The General Financial Rules 2017 Receipt and Opening of Proposals
Original Rule Text
Visual Summary
Consultants submit technical and financial bids separately.
Bids must be sealed in separate and then a larger envelope.
Technical proposals are opened and evaluated before financial bids.
Executive Summary
Rule 187 of the General Financial Rules, 2017, outlines the procedure for receiving and opening proposals from consultants, emphasizing a ‘Two-Bid System’. This system requires consultants to submit their technical and financial bids in separate, sealed envelopes, which are then enclosed in a larger, sealed envelope. Upon receipt, the technical proposals are opened first at a specified date, time, and place, ensuring that financial details are not considered during the initial technical evaluation.
In-Depth Analysis of the Rule
Rule 187 is a critical component of the procurement process for consulting services, designed to ensure fairness, transparency, and merit-based selection. It mandates a structured approach to bid submission and opening, preventing premature disclosure of financial aspects that could influence technical evaluation.
Breakdown of the Rule:
- Two-Bid System: The rule explicitly states that proposals from consultants should be requested using a ‘Two-Bid’ system. This means that the technical aspects of the proposal and the financial aspects must be submitted as distinct components.
- Separate Sealing: Both the technical and financial bids must be sealed in individual envelopes. This separation is crucial to maintain the integrity of the evaluation process.
- Outer Envelope: These two separately sealed envelopes (technical and financial) must then be placed inside a larger, duly sealed envelope. This ensures that neither component is accessible before the designated opening time.
- Submission Protocol: Consultants are required to submit their proposals to the Ministry or Department by a specific date and time, at a designated location. Adherence to these logistical details is paramount.
- Technical Bid First Opening: The rule strictly dictates that only the technical proposals are to be opened first, at a specified date, time, and place. This ensures that the technical merits of each proposal can be assessed objectively, without any knowledge of the associated costs. The financial bids remain sealed until the technical evaluation is complete.
Practical Example:
Imagine a Ministry needs a consultant for a complex IT infrastructure project. Following Rule 187, they would issue an RFP requiring a two-bid submission. Consultant A submits their technical proposal (detailing methodology, team expertise, project plan) in one sealed envelope and their financial proposal (cost breakdown, payment terms) in another. Both are then placed in a larger, sealed envelope. On the submission deadline, the Ministry receives all such sealed proposals. At the technical bid opening, only the technical envelopes are opened. A committee evaluates Consultant A’s technical capabilities without knowing their quoted price. Only if Consultant A’s technical bid meets the required standards will their financial bid be opened later for evaluation.
Related Provisions
Rule 187 is part of a broader framework for procurement of services. Other relevant rules include:
- Rule 186 of The General Financial Rules, 2017 Preparation and Issue of Request for Proposal (RFP): Details the content and issuance of RFPs, which precede the receipt of proposals.
- Rule 189 of The General Financial Rules, 2017 Evaluation of Technical Bids: Describes the process for analyzing and evaluating technical proposals.
- Rule 190 of The General Financial Rules, 2017 Evaluation of Financial Bids of the Technically Qualified Bidders: Outlines the process for opening and evaluating financial bids after technical qualification.
Learning Aids
Mnemonics:
- Technical First, Sealed Separately, Outer Envelope. (TFSSOE – Technical First, Sealed Separately, Outer Envelope)
Process Flowchart:
Multiple Choice Questions (MCQs)
1. According to Rule 187 of the General Financial Rules, 2017, how should proposals from consultants ordinarily be requested?
- A) Single bid system with combined technical and financial proposals
- B) Two-bid system with technical and financial bids sealed separately
- C) Verbal proposals followed by written confirmation
- D) Online submission without any physical sealing requirements
Show Answer
Correct Answer: B) Two-bid system with technical and financial bids sealed separately
2. What is the correct procedure for submitting the separately sealed technical and financial bids under Rule 187 of the General Financial Rules, 2017?
- A) Submit them directly to different departments
- B) Submit them in two separate packages
- C) Place both sealed envelopes into a bigger, duly sealed envelope
- D) Email them as separate attachments
Show Answer
Correct Answer: C) Place both sealed envelopes into a bigger, duly sealed envelope
3. According to Rule 187 of the General Financial Rules, 2017, which part of the consultant’s proposal should be opened first?
- A) The financial proposals
- B) Both technical and financial proposals simultaneously
- C) The technical proposals
- D) The executive summary of the entire proposal
Show Answer
Correct Answer: C) The technical proposals
4. What is the primary purpose of the ‘Two-Bid’ system as described in Rule 187 of the General Financial Rules, 2017?
- A) To simplify the submission process for consultants
- B) To allow for flexible submission deadlines
- C) To ensure technical evaluation is conducted without knowledge of financial offers
- D) To reduce the overall number of bids received
Show Answer
Correct Answer: C) To ensure technical evaluation is conducted without knowledge of financial offers
5. Who is responsible for opening the technical proposals at the specified date, time, and place, according to Rule 187 of the General Financial Rules, 2017?
- A) The consultant’s representative
- B) An independent auditor
- C) The Ministry or Department receiving the proposals
- D) The financial adviser of the Ministry
Show Answer
Correct Answer: C) The Ministry or Department receiving the proposals
Frequently Asked Questions
What is the ‘Two-Bid’ system under Rule 187 of the General Financial Rules, 2017?
The ‘Two-Bid’ system requires consultants to submit their technical and financial proposals in separate, sealed envelopes. This ensures that the technical merits are evaluated independently of the financial offers.
Why are technical proposals opened first according to Rule 187 of the General Financial Rules, 2017?
Technical proposals are opened first to ensure an objective evaluation of the consultant’s capabilities, methodology, and experience without any influence from their financial bid. This promotes fairness and transparency in the selection process.
What happens if a consultant does not seal their bids separately as per Rule 187 of the General Financial Rules, 2017?
While the rule doesn’t explicitly state the consequence, failure to follow the prescribed sealing and submission protocol would likely render the bid non-responsive, potentially leading to its rejection due to non-compliance with tender conditions.
Key Takeaways
- Rule 187 mandates a ‘Two-Bid’ system for consulting proposals, separating technical and financial offers.
- Bids must be submitted in a multi-layered sealed envelope structure to maintain confidentiality.
- Technical proposals are opened and evaluated first, ensuring merit-based selection.
- The rule promotes transparency and prevents financial considerations from influencing technical assessments.
Conclusion
Rule 187 of the General Financial Rules, 2017, establishes a robust and transparent procedure for handling consultant proposals. By enforcing a strict ‘Two-Bid’ system and sequential opening of bids, it safeguards the integrity of the procurement process, ensuring that technical competence is prioritized before financial aspects are considered. Adherence to this rule is fundamental for fair and effective selection of consulting services within government operations.