Single tender enquiry: when a buyer can invite one firm

GFR Rule 166 allows procurement from a single source in three cases. First, the user department knows that only one firm manufactures the goods. Second, in an emergency the goods must be bought from a particular source, with the reason recorded and the competent authority's approval obtained. Third, for standardisation of machinery or spare parts to be compatible with existing equipment, on the advice of a competent technical expert and with approval, the item must come from a selected firm.

For the first and third grounds, the rule requires a Proprietary Article Certificate stating the make, why no other make or model is acceptable, finance concurrence and approval. The 2024 Manual therefore separates PAC procurement from a single tender enquiry without a PAC, which it limits to an existing or prospective emergency certified by the indentor. It also says approval powers for a single tender are more restricted than for a PAC.

If you are the invited firm, a single tender is not a guaranteed order. The Manual tells buyers to determine that rates are reasonable and allows negotiation with a PAC firm. It also suggests asking a proprietary supplier for a fall clause, under which the firm reimburses the excess if it quotes or supplies a lower rate to other governments, public sector bodies or private buyers. The Manual says a buyer may in unavoidable cases waive EMD and security deposit for proprietary procurement, and its single tender provisions apply the PAC terms.

If you are not invited, a single tender is still visible. Rule 159(iii) applies the e-publishing requirement to tender enquiries issued to a single party, and the Manual says the notice and the award of a PAC contract should go on GeM-CPPP and the buyer's website. It also tells buyers to watch GeM for other vendors who can supply the item, and says no item should be bought on a PAC basis for more than three years before an open tender tests the market.

The usual mistake is to confuse a single tender with a single bid. When an advertised or limited tender ends with only one responsive offer, the Manual (para 7.6.10) says the situation is treated as a single tender for the purposes of who has the power to approve it. It also says it is wrong to assume that an open tender with a single bid must be re-tendered as the safe course. A lone bid can stand if the tender was properly advertised with enough time, the qualification criteria were not unduly restrictive, and the price is reasonable against market rates.

So a sole bidder in an open tender is not automatically rejected, and an invited firm in a true single tender still has its price tested for reasonableness.