Limited tender enquiry: how it works and who can bid

GFR Rule 162(i) allows a limited tender enquiry when the estimated value of the goods is up to Rs 50 lakh. The bidding documents go directly to firms on the buyer's list of registered suppliers, and the number of invited firms should be more than three. The limit was Rs 25 lakh until Department of Expenditure OM F.1/3/2024-PPD of 10 July 2024 raised it, so documents written before then quote the lower figure. The 2024 Manual describes the mode as the default for goods and services not available on GeM, between Rs 5 lakh and Rs 50 lakh.

Above Rs 50 lakh, Rule 161(i) makes an advertised tender the norm. A limited tender is still allowed there in three situations under Rule 162(iii): urgency certified by the competent authority, recorded reasons that an advertised tender would not be in the public interest, or sources of supply that are definitely known with little chance of fresh ones. The Manual calls this a special limited tender enquiry, uses more detailed documents and takes bid security and performance security as in an open tender. A separate DoE OM of 5 June 2025 (F.20/42/2021-PPD) raises the limited tender ceiling to Rs 1 crore for scientific equipment and research consumables bought by the notified scientific departments and research institutes.

The invitation list comes from supplier registration. Under GFR Rule 150, a department may register suppliers for goods and services not available on GeM through a fair, transparent and reasonable procedure with due publicity, for a fixed period of one to three years, after which the supplier applies for renewal. The list of registered suppliers should be shown on the buyer's website or e-procurement portal. The Manual adds that the shortlist is approved by the competent authority, may be rotated if it is long (it suggests 8 to 12 firms), and should always include past successful vendors.

Rule 162(ii) says unsolicited bids should not be accepted, but departments should have a system for interested firms to register and bid in the next round. The Manual allows an unsolicited offer to be considered, at the next higher level of authority, only in exceptional cases such as inadequate competition, no suitable quotations from registered vendors, or an urgent need from a firm known to be capable.

A limited tender is not a private one. Rule 162(i) says the buyer should publish its limited tender enquiries on GeM and on the GeM-CPPP portal, and Rule 159(iii) applies the e-publishing requirement to tenders issued to a limited number of parties. The Manual adds that bid security and performance security are normally not taken in a limited tender because the invited firms are already registered, although Rule 170(i) names limited tenders, so check the notice.

The usual mistake is to see a limited tender on a portal and bid as if it were open. If your firm was not invited, the bid is unsolicited and will normally be ignored. The useful step is to register with the buyer for the next round. A second mistake is to assume a limited tender with one valid bid is void: the Manual treats a limited or open tender that ends with only one effective offer as a single tender situation for approval powers.