(1) Save as otherwise provided for in section 31 and section 35A of the Act for procurement by the methods of single source procurement or competitive negotiations, no negotiations shall be conducted after the pre-bid stage till the completion of the evaluation of bids by any procuring entity.
(2) Negotiations may however be undertaken as per section 15 of the Act, if so approved by the competent authority, only with the lowest or most advantageous responsive bidder, and with no other bidder, under the following circumstances :-
(a) when ring, pool or cartel prices have been quoted or are suspected to have been quoted by the bidders for a subject matter of procurement;
(b) when the rates quoted vary considerably or are unreasonable or higher than the prevailing market rates.
(3) The competent authority having previously approved the holding of negotiations, the bid evaluation committee shall have full powers to undertake such negotiations, provided that the reasons and results of negotiations shall be recorded in detail.
(4) The lowest or most advantageous responsive bidder shall be informed of the proposed negotiations in writing either by email or through dak-messenger or by registered letter in such a way so as to not render the original offer of the bidder inoperative. A minimum time of seven working days from the date of delivery of such communication to that bidder shall be given for calling negotiations. In case of urgency, the Bid Evaluation Committee, after recording reasons thereof, may reduce such time to not less than three working days, provided that the lowest or most advantageous bidder has received the intimation in time and consented to negotiations.
(5) At the end of negotiation, revised bids shall be obtained in writing from the selected bidder in a format that commits him to keep both the revised and original bids valid for 45 days. The revised bid so obtained shall be read out to the bidder or its representatives present. In case the selected bidder prefers to send a revised bid instead of being present at the negotiation, the offer shall be taken into account. In case a bidder does not submit the revised bid, its original bid shall stand unrevised.
(6) In case the rates are considered unreasonable or high or are higher than prevailing wholesale market rates even after the negotiations, bids shall be rejected and fresh bids shall be invited.