Chapter-3 Provisions Relating to Bidding

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Processes and stages of bidding: (1) In making procurement through
bidding, an invitation to bid may be made by following the process as
follows:
(a) Making invitation to open bids by determining the
prequalification,
(b) Making invitation to open bids without determining the
prequalification.
(2) The open bid may be invited in a single stage or in two
stages.
(3) In making an invitation to bid in the circumstance set forth
in sub-section (1) of Section 28, it may be made in two stages.

  1. Prequalification to be determined: (1) In order to execute such works
    as determined from time to time by the Public Procurement Monitoring
    Office to be large and complex or to procure goods of high value such
    as industrial plants or to identify qualified bidders, the public entity
    shall, prior to making invitation to bids, prepare the prequalification
    documents and publicly invite to proposals for the determination of the
    prequalification.
    (2) The public entity may, if it so deems appropriate, also
    determine the prequalification for other procurement as well.
    (3) The prequalification documents referred to in sub-section
    (1) or (2) shall set forth the qualification criteria required for the
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    prequalification and the method for the preparation, and the manner for
    the submission, of proposal.
    (4) The public entity shall provide as prescribed the
    prequalification documents required to submit proposal referred to in
    sub-section (1) or (2) to all persons, firms, companies, organizations
    that request for such documents.
    (5) The selection of the qualified applicants shall be made on
    the basis of the qualification criteria set forth in sub-section (3). The
    public entity shall publicly publish a list of the applicants so selected
    and send the same to all the applicants.
    (6) If any applicant whose prequalification proposal is
    rejected requests for the information of the reason for the rejection of
    his or her proposal within thirty days of the notice being given pursuant
    to sub-section (5), the concerned public entity shall give such
    information to him or her.
    (7) Other provisions relating to the terms and conditions and
    determination of the prequalification shall be as prescribed.
  2. Bidding documents to be prepared: (1) The public entity shall, prior to
    an invitation to bid, prepare the bidding documents.
    (2) The bidding documents referred to in sub-section (1) shall
    contain the following matters:
    (a) The nature of procurement, time required for the
    procurement and technical specifications thereof,
    (b) Where bids are invited without determining the
    prequalification, the criteria for qualification of bidders
    referred to in Section 10,
    (c) Where there is a provision that site visit needed to be
    made, information relating thereto,
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    (d) If any pre-bid meeting has to be held, information relating
    to such a meeting,
    (e) Instructions for the preparation and submission of bids, the
    place for the submission of bids, the deadline for the
    submission of bids and the place, date and time for the
    opening of bids,
    (f) Component of price, the currency or currencies in which
    the bid price may be stated, the currency to be used for the
    comparison of bids and the basis of the related exchange
    rate and date thereof,
    (g) The criteria and methodology for the evaluation of bids
    and the selection of bidder,
    (h) Where preference is to be given to domestic goods and
    local construction entrepreneurs, provision relating
    thereto,
    (i) Where the procurement of any goods or works is to be
    made by making separate lots and packages, such lots and
    packages and the method of evaluation thereof,
    (j) Where alternative proposals to the technical specifications
    are also invited, the method of evaluation of such
    alternatives,
    (k) Where a bid can be submitted even only for a portion of
    the goods, works or services to be procured, details of such
    portion or portions,
    (l) The validity period of a bid,
    (m) The amount, type, acceptable form and validity period of
    the security required to be furnished for bid, performance
    or other necessary matter,
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    (n) Where the bid security is required, the matter that the
    period of that security shall exceed by thirty days to the
    validity period of bid,
    (n1)29 The matter that the performance guarantee shall be
    furnished in a sum to be set by five percent of the bid price
    of the bidder if such a bid price is up to fifteen percent
    below the cost estimate and by fifty percent of the amount
    by which less price is quoted if such a bid price is below
    more than fifteen percent of the cost estimate, in addition
    to five percent of the bid price,
    (n2) 30 Financial and technical details submitted by the bidder to
    any public entity while submitting the bid or entering into
    the contract,
    (n3) 31Where the bidder has commenced any work upon entering
    into contract with any public entity, such an entity,
    description of the work, amount of the contract and
    description of work progress,
    (n4) 32 The matter that where the bidder has commenced the work
    in accordance with clause (n3), the technical capacity of
    the bidder which is in use in any public entity shall not be
    counted for additional work to the extent that the technical
    capacity of the bidder is required for that entity, as
    mentioned in the documents referred to in clause (b) of
    sub-section (3) of Section 7,
    29 Inserted by the First Amendment.
    30 Inserted by the First Amendment.
    31 Inserted by the First Amendment.
    32 Inserted by the First Amendment.
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    (o) The terms and conditions of the procurement contract
    referred to in Section 52 and the manner of the entry into
    force of that contract,
    (p) Information that bids shall not be processed in the event of
    conflict of interest or information relating to the legal
    action that is taken in the event of fraud or corruption,
    (q) Provision that any bidder may make an application, for
    review, against any error or decision made by the public
    entity in carrying out bid actions,
    (r) Provision that the documents proving technical capacity
    and financial proposal (bid price) have to be submitted in
    one envelope, and
    (s) Such other matters so determined by the Public
    Procurement Monitoring Office as to be mentioned in the
    prequalification documents or bidding documents.
    (3) The public entity shall provide the bidding documents by
    collecting such fees as prescribed to any person, firm, body or company
    that requests for the bidding documents, and where prequalification is
    required to participate in the procurement proceeding, to any person,
    firm, body or company that has been pre-qualified and requests for such
    documents, in accordance with the notice for invitation to bids.
  3. Invitation to bids: (1) A notice for invitation to bids or pre-qualification
    proposals shall be published in a daily newspaper of national
    circulation, and in the case of an international bidding, it may also be
    published in any international communication media.
    (2) The notice referred to in sub-section (1) shall be placed in
    the website of the entity or that of the Public Procurement Monitoring
    Office, in the case of a central level public entity, and in the case of a
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    district level public entity, such a notice may be placed in the website
    of that entity or that of the Public Procurement Monitoring Office.
    (3) A notice on the invitation to bid or prequalification
    proposal shall contain the following matters:
    (a) The name and address of the public entity inviting bid,
    (b) The nature of and time limit for the act of procurement and
    the place for the delivery of the goods to be supplied, the
    services to be delivered and the work to be executed,
    (c) Where the bid security is required, the amount and validity
    period thereof,
    (d) Where the bid security is required, the validity period of
    the bid,
    (e) The place where and the manner how the bidding
    documents or prequalification documents can be obtained,
    and the fees payable therefor,
    (f) The place, manner, the last date and time for the
    submission or forwarding of the bidding documents or
    prequalification documents,
    (g) The place, date and time for the opening of bids, and the
    matter that the bidders or their authorized agents will be
    invited to attend the opening of bid, and
    (h) Such other matters as prescribed.
    (4) In publishing the notice referred to in sub-section (1), there
    shall be given a period of at least thirty days in the case of a notice of
    invitation to national bidding or prequalification proposals, and of at
    least forty-five days in the case of a notice of invitation to international
    bidding or prequalification proposals.
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    (4a)33 Where it is required to make re-invitation to bid or
    prequalification proposal because no bid or prequalification proposal is
    submitted within the period given for the submission of bid or
    prequalification proposal pursuant to sub-section (4) except for the
    circumstance referred to sub-section (5) of Section 26, or though
    submitted, no bid or proposal is substantially responsive, the public
    entity may make re-invitation to bid or prequalification proposal by
    giving a period of at least fifteen days in the case of national bidding
    or prequalification proposals, and of at least twenty-one days in the case
    of international bidding or prequalification proposals, as per necessity.
    (4b)34 Where no bid or prequalification proposal is submitted
    even within the period given pursuant to sub-section (4a) or though
    submitted, no bid or proposal is substantially responsive, and the public
    entity will suffer loss or damage or any of its functions will get stopped
    if procurement is not made immediately, the public entity may,
    specifying its justification and with the approval of the one level higher
    authority, make procurement by making re-invitation to bid by giving
    a period not exceeding seven days in the case of national bidding or
    prequalification proposals or by selecting and following any
    procurement method pursuant to Section 8.
    (5) While stating the place from which the bidding documents
    or prequalification documents can be obtained pursuant to clause (e) of
    sub-section (3), provision shall be made so that such documents can be
    obtained from two or more public entities.
    (6) While stating the place to which the bidding documents or
    prequalification documents should be submitted or sent pursuant to
    33 Inserted by the First Amendment.
    34 Inserted by the First Amendment.
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    clause (f) of sub-section (3), provision shall be made so that such
    documents is to be submitted or sent to only one public entity.
    (7) Where any public entity, bidder or proponent requests for
    security for submitting or sending the bid or prequalification proposal
    pursuant to sub-section (6), the concerned District Administration
    Office shall mandatorily make security arrangements immediately.
    (8) In making procurement through an international bidding,
    the public entity may give domestic preference to the Nepalese
    entrepreneurs and businesspersons as prescribed, and where domestic
    preference is to be so given, that matter to that effect shall be set forth
    in the notice on invitation to bid and the bidding documents.
    35Provided that, in the case of procurement of a construction
    work through a national bidding, procurement of such work up to the
    prescribed cost estimate may be made by having competition between
    domestic bidders only.
    (9) A foreign bidder shall, while submitting a bid, state
    whether the bidder has appointed any agent in the State of Nepal or not.
    (10) Where an agent has been appointed pursuant to sub-section
    (9), the details as prescribed in relation to the agent shall also be
    specified in the bid.
    (11) Notwithstanding anything contained elsewhere in this
    Section, where a foreign bidder enters into a joint venture with a
    domestic construction entrepreneur, in the case of procurement of a
    public construction work, preference may be given to such a foreign
    bidder.
    35 Amended by the First Amendment.
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  4. International bidding: (1) While making invitation to bid pursuant to
    this Act, an international bidding shall be invited in any of the
    following circumstances:
    (a) If the goods or construction works as requisitioned by a
    public entity are not available at the competitive price
    from more than one construction entrepreneur or supplier
    within the State of Nepal,
    (b) If no bid has been submitted in response to an invitation to
    national bidding for the procurement of goods,
    construction works or other services, and the same has to
    be procured from abroad,
    (c) If foreign goods or construction works have to be procured
    through the foreign assistance source pursuant to the
    agreement entered into with a donor party,
    (d) If it is certified by the public entity that the goods or
    construction works, being of complex and special nature,
    have to be procured through international bidding.
    (2) A notice on invitation to international bidding referred to
    in this Section shall be published in the English language, and all
    bidding or prequalification documents shall be made available in the
    English language.
    (3) The notice referred to in sub-section (2) shall be posted in
    the website referred to in sub-section (2) of Section 14.
  5. Clarification as to unclear matter on bidding or prequalification
    documents: (1) Where any bidder, being unclear about any matter set
    forth in the bidding documents or prequalification documents, requests
    for clarification as to that matter within the time period set out in such
    documents, the public entity shall give information about such a matter
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    to all the bidders prior to expiration of the deadline for the submission
    of bids or prequalification proposals.
    (2) Where the public entity makes any alteration in the
    information referred to in sub-section (1) and the bidding documents or
    prequalification documents, it shall give information relating to such
    alteration to all the bidders who have participated in the procurement
    proceeding within such time as to enable them to take into account also
    such alteration in submitting their bids or preparing their proposals for
    prequalification.
    (3) Where it is necessary to give additional time to bidders for
    the purpose referred to in sub-section (2), the public entity may extend
    the deadline for the submission of bids or prequalification proposals.
  6. Deadline for submission of bids or prequalification proposals: In
    determining the deadline and time for the submission of bids or
    prequalification proposals, the public entity shall so determine such a
    deadline and time that as not to be less than the period referred to in
    sub-section (4), (4a) or (4b)36 of Section 14 and as to allow sufficient
    time for bidders to prepare or submit such bids or proposals.
  7. Method of submission of bids: (1) A bid shall be submitted in the
    specified form, duly signed by the bidder himself or herself or his or
    her authorized agent, in a sealed envelope by the bidder himself or
    herself or through his or her authorized agent or by post or courier at
    such place and within the deadline and time as specified for the
    submission of bids.
    (2) The bids which are received after the deadline referred to
    in sub-section (1) shall not be entertained, and such bids shall be
    returned unopened to the concerned bidders.
    36 Amended by the First Amendment.
    27
    (3)37 Notwithstanding anything contained in sub-sections (1)
    and (2), the method of submission of bids for the procurement through
    electronic communication means shall be as per the electronic
    procurement system approved by the Public Procurement Monitoring
    Office.
  8. Withdrawal and modification of bid: (1)38 A bidder may, prior to the
    expiry of the deadline for the submission of bids, except in the case of
    a bid to be submitted through electronic communication means, make
    a sealed application in advance of twenty-four hours of the expiration
    of such deadline for withdrawal or modification of the bid already
    submitted by the bidder.
    (2) Other provisions relating to the withdrawal or
    modification of bids shall be as prescribed.
  9. Validity period of bids: (1) The validity period of bids shall be as
    specified in the bidding documents.
    (2) The period referred to in sub-section (1) shall commence
    from the deadline for the submission of bids.
    (3) Notwithstanding anything contained in sub-section (1), the
    public entity may, if so required to extend the validity period of bids
    after the opening of bids, extend the validity period of bids as required
    assigning the reason for the same.
    (4) In extending the validity period of bids pursuant to subsection (3), the consent of the concerned bidder shall be obtained.
    (5) A bidder who agrees to extend the validity period of his or
    her bid pursuant to sub-section (4) shall correspondingly extend the
    validity period of the bid security.
    37 Inserted by the First Amendment.
    38 Amended by the First Amendment.
    28
    (6) The bid security of a bidder who does not give consent
    pursuant to sub-section (4) shall be returned.
  10. Bid security: (1) A bidder shall furnish as prescribed the bid security
    along with the bid.
    (2) The security furnished pursuant to sub-section (1) shall be
    forfeited in any of the following circumstances:
    (a)39 If the bidder requests for modification or withdrawal
    of the bid after the period referred to in sub-section
    (1) of Section 19,
    (b) If the bidder refuses to accept the correction of any
    arithmetical error found in the bid,
    (c) If the selected bidder fails to enter the procurement
    contract in accordance with the terms and conditions
    set forth in the bidding documents,
    (d) If the bidder fails to furnish the performance
    security as set forth in the bidding documents within
    the time for entering into the procurement contract,
    (e) If the bidder has changed the bid price or substantive
    matter of the bid while providing any information in
    response to clarification sought by the public entity
    pursuant to sub-section (4) of Section 23 in the
    course of examination of bids.
    (f) If the bidder does any act contrary to the conduct
    referred to in Section 62.
    (3) After the conclusion of the procurement contract referred
    to in Section 52, the public entity shall return the bid security of the
    39 Amended by the First Amendment.
    29
    bidder who has entered the procurement contract and the bid security
    of those bidders whose bid security is not liable to forfeiture pursuant
    to sub-section (2).
  11. Opening of bids: The public entity shall open bids as prescribed at the
    time and place specified in the bidding documents on the same day
    immediately after the expiry of the deadline and time for the submission
    of bids.
  12. Examination of bids: (1) The public entity shall submit the bids opened
    pursuant to Section 22 to the evaluation committee.
    (2) The committee shall, prior to evaluating the bids submitted
    pursuant to sub-section (1), examine the bids in order to ascertain the
    following matters:
    (a) Whether the documents establishing that the bidder is
    qualified under law to submit the bid have been submitted
    or not,
    (b) Whether the bid is complete in accordance with the
    instructions to bidders set forth in the bidding documents
    or not, and whether it is signed by the bidder or by the
    bidder’s authorized agent or not,
    (c) Where a bid security is required to be submitted along with
    the bid, whether the bid security of such type, period and
    amount as set forth in the bidding documents is
    accompanied with the bid or not,
    (d) Whether the bid is substantially responsive to the technical
    specifications set forth in the bidding documents and to the
    terms and conditions of procurement contract attached
    with the bidding documents or not.
    30
    (3) In examining the completeness of the bid pursuant to
    clause (b) of sub-section (2), the following matters shall be examined:
    (a) Whether a power of attorney for the authorized agent or
    local
    agent of the bidder has been submitted or not,
    (b) Where a joint venture agreement is necessary, whether
    such an agreement has been submitted or not,
    (c) Whether the documents substantiating the eligibility of the
    bidder and of the goods mentioned by the bidder have been
    submitted or not,
    (d) Whether the necessary documents relating to the
    qualifications of the bidder have been submitted or not,
    (e) Where the bidding documents require the submission of a
    rate analysis, whether such a rate analysis has been
    submitted or not,
    (f) Other matters as prescribed.
    (4) The public entity may, in the course of examining the bids
    pursuant to this Section, ask the bidders for necessary information.
    (5) The concerned bidder shall provide the information sought
    by the public entity pursuant to sub-section (4) to the public entity, and
    in providing such information, no change or alteration in the bid price
    or other substantial matters of the bid shall be allowed.
    (6) In examining the bids invited after the determination of
    prequalification, it shall be examined whether the qualification of the
    bidder conforms to the prequalification or not.
    (7) While examining the qualification pursuant to sub-section
    (6), if the qualification of a bidder is found to be substantially lower
    31
    than the qualification which was at the prequalification stage, the bid
    of such a bidder shall be rejected.
    (8) If, in examining the bids pursuant to this Section, any
    arithmetical error is found in a bid, the public entity may correct such
    an error, and where, in making such correction, there exists a
    discrepancy between the unit rate and the total amount, the unit rate
    shall prevail, and the total amount shall be corrected as per that rate.
    (9) Where there is a discrepancy between the amount
    mentioned in figures and that in words by the bidder in a bid, the
    amount in words shall prevail.
    (10) Where any error is corrected pursuant to sub-section (8) or
    (9), information of such correction shall be given to the concerned
    bidder.
  13. Bids not to be entertained: No bid that has the following noncompliance shall be entertained:
    (a) The bid which is not sealed,
    (b) The bid which has not been submitted within the time
    frame,
    (c) The bid which has been withdrawn pursuant to Section 19,
    (d) The bid which is not in accordance with sub-section (2) of
    Section 23,
    (e) The bid which has been submitted by mutual collusion
    pursuant to sub-section (6) of Section 26,
    (f) The bid which has been cancelled pursuant to sub-section
    (7) of Section 23.
    32
  14. Evaluation of bids: (1) All the submitted bids other than those set aside
    for non-entertainment pursuant to Section 24 shall be included for
    evaluation.
    (2) Where a bid is found containing minor deviations in the
    matters such as the technical specifications, descriptions and
    characteristics etc. so as not to reject the bid, the value of such
    deviations shall be quantified, to the extent possible, and included in
    the evaluation of bids pursuant to sub-section (1).
    (3) Where the value of minor deviations referred to in subsection (2) exceeds fifteen percent of the bid price of the bidder, such
    a bid shall be deemed to be substantially non-responsive, and such a
    bid shall not be included for evaluation.
    Explanation: For the purposes of this Section, the words “minor
    deviations” mean such deviations that do not materially depart from the
    matters such as the technical specifications and descriptions set forth
    in the bidding documents.
    (4) Where an invitation to bid has been made after the
    determination of prequalification, the bids submitted by the bidders
    other than the pre-qualified bidders shall not be included in the
    evaluation to be made under sub-section (1).
    (5) The evaluation of a bid shall be made in accordance with
    the criteria and methodology set forth in the bidding documents, and in
    making such evaluation, the bid with the lowest bid price shall be
    determined by making comparison of the evaluated price of every bid
    with the evaluated price of the other bids.
    (6) The qualification of the bidder of the bid with the lowest
    bid price under sub-section (4) shall be verified in order to ascertain
    33
    whether it conforms to the qualification criteria set forth in the bidding
    documents or not.
    (7) Where, in examining, under sub-section (5), the
    qualification of the bidder of the bid with the lowest bid price pursuant
    to sub-section (4), the qualification is found to be in conformity with
    the criteria for evaluation of qualification set forth in the bidding
    documents, such a bid shall be deemed to be the lowest evaluated
    substantively responsive bid. Where, on such examination, the
    qualification of such a bidder is found not to be in conformity with the
    criteria for evaluation of qualification set forth in the bidding
    documents, such a bid shall be excluded from evaluation; and the
    qualification of the next bidder having the next lowest bid price shall
    be examined on the same grounds respectively.
    (8) The evaluation committee shall prepare an evaluation
    report stating, inter alia, the criteria and methodology of evaluation of
    the lowest evaluated substantially responsive bid pursuant to subsection (6) and submit the report to the public entity.
  15. Rejection of bids or cancellation of procurement proceeding: (1) The
    public entity may reject all the bids or cancel the procurement
    proceeding in the following circumstance:
    (a) If none of the bids is substantially responsive
    pursuant to clause (d) of sub-section (2) of Section
    23,
    (a1)40 If the contract cannot be made with the bidder even
    after following the process referred to in sub-section
    (6) of Section 27,
    40 Inserted by the First Amendment.
    34
    (b) If the bid price of the lowest evaluated substantially
    responsive bid substantially exceeds the cost
    estimate, or
    (c) If the requisitioned goods, works, consultancy
    services or other services are no longer required.
    (2) Notwithstanding anything contained in sub-section (1), no
    bid may be rejected or re-bidding invited for the sole reason that only
    a few bids are or only one bid is substantially responsive.
    (3) The public entity shall give a notice of the rejection of bids
    or cancellation of the procurement proceeding pursuant to sub-section
    (1), along with the reason for such rejection or cancellation, to all the
    bidders.
    (4) Where any bidder requests, within thirty days of the
    communication of the notice pursuant to sub-section (3), for the
    grounds for the rejection of all bids or cancellation of the procurement
    proceeding, the public entity shall give such information to that bidder.
    (5) In making re-invitation to bid because of the nonsubmission of any bid in response to an invitation to bid or rejection of
    all bids or cancellation of the procurement proceeding pursuant to subsection (1), the modification shall also be made in the bidding
    documents, technical specifications, cost estimate and the terms and
    conditions of procurement contract as per necessity, upon reviewing the
    reasons for such rejection of bids or cancellation of the procurement
    proceeding.
    (6) Notwithstanding anything contained elsewhere in this
    Section, if it is proved that any bidder has submitted the bid, in mutual
    collusion with the bidders, such bids shall be rejected.
    35
  16. Acceptance of bid and procurement contract: (1) The public entity shall
    select for acceptance only the lowest evaluated substantially responsive
    bid in accordance with Section 25.
    (2) The public entity shall, within seven days of the selection
    of the bid pursuant to sub-section (1), serve a notice of the intent of
    acceptance of his or her bid to the concerned bidder. Information of the
    name, address of the bidder whose bid has been so selected and the
    price of the bid shall also be given to the other bidders as well.
    (3) If no bidder makes an application pursuant to Section 47
    within the period of seven days of the notice referred to in sub-section
    (2), the bid of the bidder selected pursuant to sub-section (1) shall be
    accepted and a notice shall be given to the bidder to furnish the
    performance guarantee to enter into the procurement contract within
    fifteen days.
    (4) The concerned bidder shall furnish the performance
    guarantee and sign the procurement contract referred to in Section 52
    within the period set forth in sub-section (3). In so furnishing the
    performance guarantee, the bidder shall furnish the performance
    guarantee in a sum to be set by five percent of the bid price of the bidder
    if such a bid price is up to fifteen percent below the cost estimate and
    by fifty percent of the amount by which less price is quoted if such a
    bid price is below more than fifteen percent of the cost estimate, in
    addition to five percent of the bid price.
    41
    (5) If the bidder fails to furnish the performance guarantee and
    enter into the procurement contract within the period referred to in subsection (3), the bid security of that bidder shall be forfeited, and the bid
    of the other immediately next lowest evaluated substantially responsive
    41 Inserted by the First Amendment.
    36
    bidder shall be accepted and the procurement contract shall be entered
    into.
    (6) If even the bidder referred to in sub-section (5) fails to
    furnish the performance guarantee and execute the procurement
    contract, the bid of the other immediately next lowest evaluated
    substantially responsive bidder, respectively, shall be accepted, and a
    notice shall be given to that bidder for entering into the procurement
    contract pursuant to this Section.
    (6a)42 The public entity shall generally complete the act relating
    to the acceptance of bid and procurement contract within the bid
    validity period referred to in Section 20.
    (7) If, within thirty days of the notice referred to in sub-section
    (2), any bidder whose bid has been rejected requests for the ground for
    the rejection of his or her bid, the public entity shall give such
    information to that bidder.
  17. Two-stage bidding: (1) Two-stage biding may be invited in the
    following circumstance:
    (a) If it is not feasible to define fully the technical aspects of
    the goods or construction work or service to be procured
    or the terms and conditions of the procurement contract at
    the time of the invitation to bid, or
    (b) If, because of the complex nature of the goods,
    construction work or service to be procured, it is necessary
    for the public entity to discuss with the bidders about how
    to resolve the problems related to various technical aspects
    thereof or the procurement contract and about such
    42 Inserted by the First Amendment.
    37
    technical aspects and the conditions of contract and
    benefits accruing therefrom.
    (2) While inviting the first-stage bid pursuant to this Section,
    the bidding documents shall state the purpose of procurement, expected
    performance, tentative specifications, other broad features and the
    qualification of bidders, and state that the bidder is not required to quote
    the price in his or her bid and shall submit only technical proposal and
    comments on the terms and conditions of the proposed procurement
    contract.
    (3) The public entity may hold discussions with any or all
    bidders in relation to the bids submitted in response to the invitation to
    bid made pursuant to sub-section (2).
    (4) The public entity may, having regard to, inter alia, the
    discussions held pursuance to sub-section (3), carry out the following
    in relation to the bids received pursuant to sub-section (2):
    (a) Cancelling a proposal relating to a bid that fails to
    meet the basic requirements required to be met in
    relation to the procurement or fails to make the
    minimum performance or fails to complete the work
    within the specified period or that cannot be
    modified to meet such requirements or to make such
    performance or to complete the work within the
    specified period or that is not responsive due to any
    other weakness,
    (b) Modifying or improving the technical
    specifications, evaluation criteria and terms and
    conditions of the procurement contract in order to
    increase competition,
    38
    (c) Determining the evaluation system in order to
    determine the appropriateness of various options
    submitted by the bidders.
    (5) The public entity shall, after the completion of the acts
    referred to in sub-section (4), make invitation to the second-stage bid.
    In making such invitation to bid, the bidders whose bids have not been
    cancelled pursuant to the said sub-section shall be invited to submit
    bids along with the price in accordance with the revised bidding
    documents.
    (6) The second-stage bidding actions to be carried out under
    sub section (5) shall be carried out in accordance with the provisions
    contained in this Chapter, except for those provided for in this Section.

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Chapter-3 Provisions Relating to Bidding

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