A procuring entity may choose to invite bids in single envelop or two envelops, as specified under in section13 of the Act, depending on the content, nature, or type of the subject matter of procurement or the availability of the appropriate design or the appropriate and most suitable technical specifications or technical capacity to define the qualitative standards and technical specifications for the subject matter of procurement. The procedure and basis for so choosing shall be as prescribed herein below:-
(i) The single envelop system shall be adopted by procuring entities where the subject matter of procurement is well defined with clearly set qualitative standards and technical specifications that are not complex in nature.
(ii) The two envelop system shall be adopted by the procurement entities in cases where the qualitative standards of the subject matter of procurement are not clearly set or the technical specifications and requirements for it are complex or where, in particular cases, the most appropriate design or technology at the best price is not available with the procuring entity.
(iii) In case of single envelop bids, the lowest responsive priced bid that meets the eligibility criteria as well as the technical and commercial requirements laid down in the bid documents shall be the successful bid.
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(iv) In case of two envelop bids, bid security shall be submitted in or along with the first envelope containing the technical bid. The technical bids shall be opened first and evaluated. The Bid Evaluation Committee shall not be allowed access to the financial bids by the procuring entity which shall ensure the integrity and safe-keeping of the sealed financial bids till the completion of evaluation of technical bids.
(v) The evaluation of technical bids, in case of two envelop bids, shall be based solely on the criteria as specified in the bid documents and these shall not be waived even in cases where none of the bidders meet such criteria. If none of the bids are technically acceptable or none meet the criteria, the procurement process shall be cancelled and fresh bids invited without opening the financial bids. After completion of the technical evaluation, the financial bids of only the technically accepted bids shall be opened and evaluated. The lowest priced most advantageous bid among the technically accepted bids shall be the successful bid.