Procurement Policy

Procurement of materials required by TANGEDCO are being carried out by tender inviting authority as per the tender procedures laid down in Tamil Nadu Transparency in Tenders Act 1998 and Tamil Nadu Transparency in Tender Rules 2000.

Open tenders:

Tenders are invited by advertisement of tender notices in the dailies having wide circulation and TANGEDCO & Govt. websites

Limited tender:

When tender inviting authority is of the opinion that open tender may not be advantageous or economical, Limited tender system shall be resorted to by direct invitation to limited number of tenderers.

Single tender:

If the competent authority is of the opinion that the materials are required for immediate use or materials are of proprietory in nature, Single tender system is adopted.

The tenderers are required to submit their bid in accordance with the instructions contained in the specification.

The tenderers have to pay EMD (Earnest Money Deposit) along with the bid or furnish the proof for exemption of payment of EMD as furnished in the specification. The requirement of EMD is normally up to 1% of value of procurement.

Single part system:

The offers of the bidder will be read out including price bid on the day of tender opening.

Two part system:

It means a procedure under which the tenderers are required to simultaneously submit two separate sealed covers, one containing the Earnest Money Deposit and the details of their offer to undertake the tender in line with specification which alone will be opened initially and the second cover containing the price quotation will be opened at a later date, only if the tenderer is found qualified to execute the tender.

All the tenders received shall be opened at the time specified in the Notice Inviting Tender. The tenders will be opened in the presence of tenderers representative of the tenderer who chooses to be present. The name of the tenderers and the quoted price shall be readout in case of single part system after confirming payment of Earnest Money Deposit and furnishing of other documents required as per specification. On opening the price bid, the tenderer who has bid the lowest evaluated price in accordance with the evaluation criteria will be qualified for further process. In order to ascertain possible reduced price, the lowest eligible tenderer will be called for price negotiation by competent negotiation committee and the final price will be arrived.

Tender scrutiny committee will scrutinize the tender documents and make detailed evaluation and prepare an evaluation report for the consideration of the Tender Accepting Authority. If the tenderer qualified to perform the contract is identified in single part system, the Tender Accepting Authority shall pass orders accepting the tender and communicate the order of acceptance to the successful tenderer.

In the case of Two part system the commercial bids of the tenderers will be readout if they satisfied the minimum requirement of the tender such as EMD etc. Their price bids will not be opened initially and kept under safe custody of competent authority.

The Tender Accepting Authority will pass orders on accepting the commercial bid of the tenderers and the list of eligible tenderers whose price bids can be opened. The price bids of the eligible tenderers will be opened on stipulated date and time by competent authorities.

After opening of the price bid, evaluation report shall be prepared to determine L1 bidder as per the evaluation criteria specified in tender document. The lowest eligible tenderer will be called for price negotiation by competent negotiation committee. After ensuring reasonableness in price quoted/ negotiated, the proposal shall be placed before competent authority for according its approval. Tender Accepting Authority shall pass orders accepting the tender and communicate the order of acceptance to the successful tenderers.

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